The market for digital 3D cinema is still relatively minor and the number of screens not yet large enough to justify a major Studio release. The report provides an economic basis for continued investment in digital 3D cinema, looking at opportunities for the sector against the potential threats to its pace of development worldwide. On a technical level, the report considers each of the stereoscopic formats available, including the range of investments, as an addition, to basic D-cinema systems.
For the first time, the report looks at the economics of digital 3D cinema, including the potential revenues and profit margins at the exhibition level. The report also highlights the various business models available for exhibitors to commence a large scale roll out of 3D-ready screens.

Key findings:
High concentration of digital 3D screens among the leading exhibitors
Nearly two thirds of all 3D equipped screens were added in first half 2007 alone
Digital 3D acting as a catalyst for digital cinema deployments worldwide
3D screenings have outperformed their 2D counterparts by more than double in attendance rates and over three times in revenue.
Exhibitors require at least three movies to make a return on investment per annum
Globally, there will be over 5,900 digital 3D screens by 2009, 70 per cent of those housed in the USA


In the report:
List of digital 3D movies to 2010
Studio involvement in digital 3D cinema
Box office analysis of digital 3D titles released to date
Review of stereoscopic technology formats and investments required at each level
Business models for digital 3D cinema roll-out
Analysis of potential revenues and profit margins for exhibitors
Digital 3D cinema forecasts to 2011 by territory and region
Break-even analysis: number of movies needed for a return on investment


Table of contents:
Executive summary
Introduction
Screens
Superior box office performance
Competition among top US exhibitors
Equipment providers
Content
Opportunities
Threats
Investment/Returns

The market for digital 3D cinema
Introduction to digital 3D cinema
Producing content in 3D
CG Animations
Dimensionalisation
Live action - film
Live action - digital/hybrid
Challenges for 3D film production
Studio involvement in digital 3D
Walt Disney
Sony Pictures Entertainment
Warner Brothers
Twentieth Century Fox
Universal Pictures
Paramount Pictures
Dreamworks SKG
Dreamworks Animation
Independents
Technical standards for digital 3D cinema
Mastering
Distribution
Exhibition

Stereoscopic formats and technology
Brief historical perspective
Anaglyph
Imax 3D
Technology
Advantages
Content
Digital
Opportunities
Digital 3D
Technical attributes of digital 3D
Image alignment
Screen gain
Silver screen
Overview of digital 3D technology
Active/Shutter glasses
Technology
Equipment
List of complete system for active eyewear
Eyewear
Screen
Advantages
Disadvantages
Active glasses manufacturers
Macnaughton (NuVision Inc)
Vrex
SoftPixel
Circular polarisation
RealD
Equipment
Eyewear
Screen
Advantages
Disadvantages
RealD
Linear Polarisation/Two Projector model
Technology
Equipment
Eyewear
Screen
Advantages
Disadvantages
Wavelength triplet technology
Dolby 3D Digital System
Technology
Equipment
Eyewear
Screen
Advantages
Disadvantages
Autostereoscopic 3D
Future technology prospects

Digital 3D cinema exhibition:
Opportunities and threats
Opportunities
Differentiation
Windows
3D franchises
Stream of content
Piracy
3D as a catalyst for digital
Marketing opportunities
Content
New content
Alternative content 3D
Live 3D content
Library 3D titles
Commercial
Trailers
Advertising
Exhibition
Premium pricing
Longer run
3D box office
Higher attendance ratios
Market Competition
Threats
3D quality
Longevity
Novelty factor
Linked to theatrical survival
Content
Maintaining a flow of content
Industry
Market niche
Loss of downstream revenues
Prime locations
Screens
Scale
Access to screens
Screen suitability
Technology
4K projectors
Competing 3D formats
Light
Silver screen
VPF agreements

Digital 3D cinema: The numbers
Market overview
Regional
Territories
Driver territories
1. USA
2. Korea
3. Australia
4.Germany
5. UK

US exhibitors
International exhibitors
Carmike
Rave Motion Pictures
National Amusements
Regal
Cinemark
Digital 3D systems
3D box office
Potential 3D releases
Distribution of 3D movies
Other 3D applications
Mobile
Business models for digital 3D cinema
Development of the digital 3D market
Exhibitors driving growth
Business Models for digital 3D cinema
Third party schemes
Leasing
Real D
Joint venture/profit sharing
Xpand
Exhibitor-led
Capital investment
Active glasses
Capital investment
Dolby 3D system
Capital investment
Premium pricing
Fixed charge
Flexible pricing
Additional revenue generation - 3D
Digital 3D facilitators
Kodak
AccessIT
Ballantyne of Omaha
Dolby
Atlab Australia
FTT

Market analysis of investments and returns
Part one: Investments
Part two
Revenue/Profit
Investments for the digital 3D stereoscopic format
RealD
Eyewear
Equipment
Screen
Active eyewear
Eyewear
Equipment
Screen
Xpand
Investments
Glasses
Equipment
Screen
Additional information
Glasses
Equipment
Screen
Part two
Revenue and Profits
Methodology
Surcharge revenues
Costs
Profit generation
Case Studies
Chicken Little
Monster House
Nightmare before Christmas 3D
Meet Th e Robinsons
Summary
Sliding scale model
Additional revenues

Tables and Charts:
The market for digital 3D cinema
Digital 3D cinema titles to 2010
Production budgets of digital 3D titles
Number of digital 3D releases ranked by US studio distributor to 2010

Stereoscopic formats and technology
Main digital 3D technology providers
Comparsion of digital 3D equipment by technology provider
Comparison of required in-theatre maintenance of 3D formats

Digital 3D cinema exhibition:
Opportunities and threats
Number of digital 3D titles per year
Data from Cinecitta multiplex in
Germany from two digital 3D screenings
3D performance in opening weekend vs total
Total 3D box offi ce as % of total revenues in US market

Digital 3D cinema: The numbers
Number of digital 3D screens
Digital 3D screens as a proportion of total digital cinema screens
Leading International territories for digital 3D screens (H1 07)
Market share of digital 3D screens by region (%)
Number of digital 3D screens by region
Number of digital 3D screens by world region
Number of digital 3D screens ranked by territory (H1 2007)
US D-3D screens ranked by US state (with more than 3 3D screens)
US exhibitors with more than five D-3D screens (H1 2007)
Market share of 3D formats H1 2007
Global exhibitors with more than one digital 3D screen
RealD deployments by territory (excluding USA)
Number of deployments by digital 3D format
Market Share of digital 3D formats by manufacturer
RealD deployments by territory
Box office results from opening weekend of Chicken Little
Box office results from opening weekend of Monster House
Box office results from opening weekend of Nightmare before Christmas 3D
Box Office results from opening weekend of Meet The Robinsons
Box office results from opening weekends of digital 3D titles
Performance of digital 3D titles in opening weekend only
Digital 3D cinema forecasts
Digital 3D screen forecasts by territory

Business models for digital 3D cinema
Premium pricing short survey March 2007

Market analysis of investments and returns
Investments required per 3D technology format
Active glasses
Dolby/Infi tec
RealD
Xpand
Incremental revenue derived from Xpand screen
Analysis of 3D box office returns from Chicken Little
Analysis of 3D box office returns from Monster House
Analysis of 3D box office returns from Nightmare 3D
Analysis of 3D box office returns from Meet the Robinsons
Average profit per screen from surcharge revenues of digital 3D screenings (based on $2 premium)
Cumulative revenue and profit for number of digital 3D releases
Profitability of digital 3D screen per annum (based on RealD licence fee and silver screen)
Profitability of digital 3D screen per annum (based on RealD licence fee)
Analysis of potential profit based on box office per screen
Summary based on a sliding scale of surcharge fees
Profit generation based on box office revenue per screen and amount of surcharge applied ($)