Spend on 3D Blu-ray nearly doubled in 2012

Dec 21, 2012 No Comments by

IHS Screen Digest Graphic 475x197 Spend on 3D Blu ray nearly doubled in 2012

In a welcome piece of good news for the 3D industry, a report indicates 3D content and technology is thriving.

According to an IHS Screen Digest Cross Platform Intelligence report, worldwide metrics are on the rise for 3D technology as a whole. 3D Blu-ray sales nearly doubled in 2012 compared to 2011 in America and the number of 3D cinema screens has increased fourfold over the past three years to 43,000 by the third quarter this year.

In the US-centric report, US consumers will spend $2 billion watching 3D movies, an increase of 8.5% compared to 2011. The spend covers 3D box office, 3D VOD and 3D Blu-ray.

“In an age where consumers have at their easy disposal a virtual treasure trove of entertainment options to draw from, the encouraging growth of the 3-D medium is remarkable to behold,” said Tony Gunnarsson, analyst for video at IHS Screen Digest.

“The continuing expansion of the industry is especially significant when one considers that 3D is but a small niche of overall digital viewing, and that consumers have to shell out considerably more money for 3-D products, which are priced at a premium and not necessarily an easy sell in these economically uncertain times.”

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The summary concludes that the 3D market in the US has matured with 3D revenue prospects becoming increasingly reliant on the quality of the 3D films being released. Whilst growth has slowed down in the developed regions, developing markets such as China are seeing an explosive growth in 3D screen numbers.

America is still the largest market for 3D Blu-ray, accounting for 51% of global sales. Increasing spend on 3D Blu-ray is going against the trend of the move away from physical media. The report forecasts strong growth up to 2016, when it is expected to even out.  Spending by U.S. consumers on the medium is up 94% this year from 2011 levels, to $220 million, with BD 3-D unit sales set to climb 105%, to 9.9 million units. It not the case in China however, owing to the lack of a legitimate physical video market in the country in light of rampant piracy.

“Despite the relatively small market for BD 3-D, the format plays an important role for overall physical video,” Gunnarsson noted. “BD 3-D is already being marketed as the ultimate home-video experience, and studios are pricing 3-D home-video well above Blu-ray 2-D versions.”

Strong growth in the home 3D Blu-ray market is also expected in the UK, Germany and France.

However, it is not all rosy. 3D channel launches slowed considerably in 2012. Sky 3D Germany stripped back its schedule and the 9 further 3D channels planned for China look less certain.

The report warns that the overall limited slate of 3D VOD titles as well as a price premium as much as 30% over HD titles, may serve to discourage some consumers from services in the short term.  However, IHS iSuppli's market intelligence report  expects these obstacles to be overcome and that US consumers will spend $76.1 million on 3D VOD by 2016, up from $11.1 million this year. European viewers, meanwhile, will fork out $32.4 million, compared to just $3.5 million during the same period.

Read the full IHS Screen Digest summary here.

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