By Matthew Garrahan in Los Angeles
Published: August 15 2010 18:30
It was hailed as the great saviour of the film industry, but since 3D technology propelled Avatar to a record-breaking $2.73bn box-office haul, fears are growing that Hollywood is endangering its profitable new format.
Several 3D films have topped the box office charts this year, including Alice in Wonderland and Clash of the Titans. Yet, a string of recent 3D films has stumbled at the box office, notably Cats & Dogs: The Revenge of Kitty Galore, which flopped, and Step Up 3D, which made less than the first two films in the dance series, both of which were released in 2D.
Hollywood studios like 3D because consumers have so far been willing to pay a premium to see the films. But with 3D tickets costing as much as 50 per cent more than comparable 2D films, analysts have expressed doubts about whether consumer appetite for the format can be sustained – particularly if the films are poor.
“The studios and theatres are overpricing 3D films and there’s too much of it out there,” said Richard Greenfield, an analyst with BTIG Research.
“They are converting all of their movies into 3D without any regard to quality.”
A US ticket for Cats & Dogs, which was panned by critics, cost up to 50 per cent more than Christopher Nolan’s Inception, which was released in 2D recently to great critical acclaim. Yet Cats & Dogs cost less to make than Inception and was only converted into 3D after production had finished.
“Why should releasing a film in 3D and having the audience wear 3D glasses cost more?” asked Mr Greenfield.
The studios have packed their release schedules with 3D films: Tron: Legacy, The Green Hornet, Megamind and Yogi Bear are lined up for the coming months, whileAvatar will be re-released in 3D at the end of August.
Proponents of 3D insist that it can be a powerful tool when used correctly. “It’s a tool for filmmakers and a premium entertainment experience for moviegoers,” says Rick Heineman, vice-president of marketing at RealD, which makes 3D projection systems for cinemas.
But other analysts say Hollywood is playing a risky game by betting on unwavering consumer enthusiasm for 3D – and for higher prices.
“The studios are guilty of short-term thinking,” says Brandon Gray, president of Box Office Mojo, which tracks film box-office performance. “They all jumped on the 3D bandwagon but they’re avoiding the real issue, which is their bankruptcy regarding storytelling.”