Hollywood Digital Push Brings Together Technicolor and Deluxe

  • Technicolor Inc. and Deluxe Entertainment Services announced a new partnership for film print production and distribution, as the demand for film prints continues to wane.
  • According to the Los Angeles Times: “Technicolor will subcontract its 35mm film print business in North America to Deluxe,” while “Deluxe will farm out its 35mm print distribution business to Technicolor.”
  • Technicolor closed its North Hollywood plant earlier this year, and will soon close a plant outside of Montreal.
  • Technicolor will open a smaller facility in Glendale focused on producing prints for IMAX and other big screen theaters.
  • Plummeting demand for prints stems from theaters converting to digital projection; the transition has taken place in nearly half of the 42,000 screens in the U.S.

Entertainment Media Companies Not Ready for Digital Opportunities?

  • Most media and entertainment company senior execs believe they are not fully leveraging customer data that would make it possible to deliver customized content, suggests a new study by consulting firm Accenture.
  • The research indicates that 91 percent of these executives are not taking full advantage of the data, and as a result, are not adequately prepared to identify revenue opportunities related to current and future digital technologies. Additionally, 95 percent do not have strong digital customer relationship management capabilities.
  • If fewer than 10 percent of the companies have a fully integrated view of their digital consumers, a new operating model may be necessary for sustainable digital growth (Accenture recommends a shift from legacy vertical, channel-oriented structures toward a horizontally-layered operating model).
  • Only 55 percent said their companies had a clearly defined social networking strategy in place, while 80 percent believe the industry is still in a state of flux. And 42 percent anticipate that advertising will serve as their main source of revenue in the next two years.
  • Accenture’s “Global Media & Entertainment High Performance Study” canvassed 130 executives across Europe, North America, South America and Asia Pacific from industries including television, gaming, film, music, publishing, portals and advertising.

Media Industry Groups Announce New Anti-Piracy Coalition

  • A collection of Hollywood studios and guilds this week announced the formation of “Creative America,” a non-profit grassroots organization intended to fight piracy that threatens creative jobs.
  • Creative America intends to provide a unified voice for some 2 million Americans who work in film, television, and other creative fields and believe, “that halting the looting of America’s creative works and protecting jobs must be a national priority.”
  • Members of the coalition include: AFTRA, CBS, DGA, IATSE International, NBC Universal, SAG, Sony Pictures Entertainment, Twentieth Century Fox, Viacom, Disney and Warner Bros.
  • The coalition supports a new bill before the U.S. Senate, which would allow the Department of Justice to pursue pirates overseas.
  • The group aims to provide IP protection and related information through its website and social networking entities such as Facebook and Twitter.

Rovio Planning Angry Birds Feature Film, Acquires Animation Studio

  • Rovio, creator of the game app “Angry Birds,” is planning the next step for its popular IP: a feature-length motion picture.
  • The expanding franchise has already proven successful with plush toys, iPhone cases, a Mattel board game, a cookbook, and an interesting tie-in with 20th Century Fox’s feature film, “RIO” (Rovio launched mobile game “Angry Birds Rio” to coincide with the film’s release).
  • In order to facilitate its next steps, Rovio has acquired Finnish animation studio Kombo and has attached former Marvel Studios chairman David Maisel as special advisor.
  • Based on the global popularity of the app and the “emotional connection” that gamers experience during play, Maisel sees continued success for “Angry Birds” as an entertainment brand.

MoviePass Unlimited Admission Beta Hits a Roadblock

  • Last week ETCentric reported that a new service called MoviePass plans to offer unlimited movie viewing in participating theaters for a fee of $50/month. The initial beta was scheduled for the holiday weekend in San Francisco.
  • The planned beta test hit a roadblock when a number of San Francisco theaters decided not to participate since they did not consent to the admission price of the proposed model.
  • Interestingly, the theaters would still have been paid full admission.
  • From the AMC press release: “As MoviePass was created without AMC’s input and testing, we cannot confidently say the guest experience would be positive for our guests and specifically our AMC Stubs members.”

The Future of 3D Looks Bright, According to New Studies

It should come as no surprise to our audience that industry opinions regarding 3D entertainment are mixed. Despite technological advancements we’ve seen in recent years to gaming, theatrical film exhibition, television sets, production processes and a variety of consumer products — a number of significant questions continue to spark debate: Glasses or glasses-free? Active or passive? Standard feature or gimmick? Strong or slow consumer adoption? However, a number of recent studies agree on one thing — the near future of 3D will see some tremendous growth.

In a report released this week, digital entertainment market researcher In-Stat predicts global 3D TV shipments will be up nearly 500 percent this year, compared with 2010. The report also suggests that all televisions with screen sizes 40 inches and above will soon be 3D-enabled. The In-Stat forecast is joined by another report from NPD Group subsidiary DisplaySearch that suggests 3D TVs will account for approximately one-third of all 120 Hz LCD sets in 2011. DisplaySearch also explained that 3D TV penetration will expand as the 3D feature is added to more basic models in upcoming years. Researcher IHS iSuppli adds that 2012 will be another year of triple-digit growth for 3D TV shipments.

“In a major recalibration effort, television brands are changing strategies this year following lukewarm response to 3D in 2010 when consumers balked at the high price of sets and the lack of 3D content,” explained Riddhi Patel, director for television systems and retail services at IHS. “In 2011, however, brands are marketing 3D not as a must-have technology but as a desirable feature, similar to the approach they have taken with Internet connectivity.”

This week’s In-Stat report offers the following numbers:

  • Households with 3D TV sets will eclipse 300 million in 2015.
  • In 2011 Europe will boast the most 3D TV unit shipments at just over 7 million.
  • By 2015 Asia/Pacific will have the largest share of 3D TV unit shipments at 32 percent.

Additionally, an industry survey recently conducted by crew booking and payroll company Media Services indicates that 3D is becoming a “predominant mode of production” — as nearly half of respondents indicated their businesses will emphasize 3D film and television production in the next five years.

The question regarding consumer adoption may soon be impacted by increased production numbers and lower prices from manufacturers (and if the shipment predictions above prove accurate, it may not matter). As CNET reports, “NPD found that 45 percent of people who won’t buy a 3D TV cite price as the barrier and 42 percent say its the special 3D glasses. But as In-Stat’s study has found, consumers may not have much of a choice. Vendors are continuing to add 3D capability, especially to bigger-screen sets. And if folks want bigger screens, they will soon get 3D capability whether they seek it or not.”

Related Below the Line post: “Study Reveals Shift to 3D Over the Next Five Years” (5/17/11)

Related Advanced Television article: “3D TV shipments up 500% in 2011” (5/6/11)

Related TV Technology post: “RealD, Samsung Partner in 3DTV Display Project” (5/17/11)

Related Engadget post (and videos): “Intel will mass produce 3D transistors for all future CPUs, starting with 22nm Ivy Bridge” (5/4/11)

Related PCMag.com article: “3D Transistors, EUV, and the Future of Chipmaking: Why it Matters” (5/6/11)

Walter Murch Addresses Why 3D Does Not Work

Film editor and sound designer Walter Murch wrote a letter to Roger Ebert in which he discusses the pitfalls of editing and viewing 3D movies.

Ebert notes that Murch is uniquely qualified to comment on 3D, considering he has received Academy Award nominations for films edited on four different systems, including: upright Moviola, KEM flatbed, Avid, and Final Cut Pro. He also edited the 3D “Captain Eo” in the 1980s and wrote “In the Blink of an Eye: A Perspective on Film Editing” in 1995.

In his letter, Murch addresses a number of compelling points such as the inherent darkness of the 3D image, the strobe effect of horizontal movement in 3D, and what he sees as problematic issues involving how our eyes and brain interpret convergence, focus, and immersion. Murch sums up his take on 3D as, “dark, small, stroby, headache inducing, alienating. And expensive. The question is: how long will it take people to realize and get fed up?”