Can 3D save Hollywood?

Hollywood is in need of a financial Superhero. Box office revenues and ticket sales have been flat the last three years while DVD sales decline and costs continue to soar. In fact, major studio releases now average $78 million to produce and $40 m. to market. Studios are reacting by playing it safe creatively. In the last twelve months, 17 of the top 23 grossing films were sequels. More worrisome is the abrupt decline of DVD sales and the painfully slow adoption of Blu-Ray. In the length of time it took the DVD to reach 20 percent penetration, Blu-Ray has attained a measly 6%. With improvements in the quality of the 3D viewing experience and a proven track-record of bringing in higher revenues, the buzz around Tinseltown is that 3D could be an industry windfall.

But will this save Hollywood? That answer will be heard loud and clear this Christmas when James Cameron's 3D epic "Avatar" hits theaters. With an estimated production budget of $350 m., if this film achieves the success of his last release (Titanic), Hollywood will have found its next Superhero: 3D.

From Seder to Superheroes – Aniboom on a Roll

No one can forget their first love. Uri Shinar, founder of virtual animation studio Aniboom, began his career in animation.

Twenty-nine years ago, I created my first animation - the Hagada in clay-mation. We sold it to eight countries. Then I went to Cannes for the MIP TV Festival. It was during Passover and they arranged a seder with two hundred people. So I said, let me bring the books and show the animation on the screen... after that evening, our show sold to 40 countries."

Now Uri is providing a similar venue for independent animators, but without the surly French waiters or tasteless matzah.

About this blog

Unleavened Media Levi Shapiro advises digital media companies from Hollywood to Herzilya Pituach. From his base in Los Angeles, he works closely with "unleavened" (emerging) companies in technology, media and telecom as a strategy consultant.

Mr. Shapiro has launched new business units (IBM), new services (Toyota) and entirely new companies (Two Minute Television, Snack Mobile, TMT). When not roller-blading on Venice Beach, he is an Adjunct Professor at UCLA and frequent speaker at industry events. He welcomes your comments at levi@tmtstrat.com or on twitter.

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Dr. Shmuel Einav: Again an interesting article. We have near my lab here a "cave" where 3D immersed images are displayed (with goggles). My experience is that one gets tired very quickly of watching such an image. Is this a consideration in the industry?
Ari, NY: My experience with US Angel groups is by far better than the Israeli groups. The US groups are more professional, seek experts opinion (while the Israeli groups seek friends opinion) and understand the market much better. I offered to some of them my expertise and knowledge of the NY market, but it did not seem to move them.
Efrat, Tel Aviv: Great work Levi, as usual. Interesting to see the different point of views from different figures.