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Consumer spending on 3D Blu-ray titles to rise 533% in 2011

On the back of encouraging market developments and increasing audience interest, consumer spending on Blu­ray 3D Disc in 2011 is forecast to rise 533% across the four big markets of the United States, the United Kingdom, Germany and France, according to new IHS Screen Digest research.

Combined consumer spending on 3D BD title across these territories will reach $213.9 million this year, up slightly more than sixfold from $33.8 million in 2010, 3DBD’s launch year. The 2011 expenditure is the result of a collective purchase of 7.5 million 3DBDs, a significant increase on the 1.1 million titles sold last year to consumers.

By 2014, three years from now, 3D BD consumer spending on titles is projected to reach $909 million, just over four times more than the figure anticipated at the end of 2011. Some 41 million 3D BD titles will be bought by consumers in 2014, a hefty increase of more than 445% from the 2011 sell-through rates.

The 3D BD titles being counted are specifically those that conform to the Blu-ray Disc Association’s 3D BD trademark covering an explicit set of rules on what qualifies for the standard, such as the delivery of left- and right-eye images sequentially in full high-definitions 1080p. As such, the consumer spend forecasts exclude Blu­ray Discs that may play 3-D images but do not adhere strictly to the association’s 3D BD criteria.

"Consumers are snapping up 3D BD titles because of a number of positive occurrences in the home 3-D segment," said Richard Baxter, research analyst, video, at IHS. "These developments include increasing consumer awareness of 3-D technology, rising 3-D hardware sales and an expanding catalog of 3-D films for the home environment.

Meanwhile, more 3D BD titles in retail stores will enhance the technology’s profile among consumers and encourage 3-D hardware adoption. 3D BD-enabled households - homes that have a 3-D TV connected to a 3-D Blu-ray Disc player (or Sony Corp. PlayStation 3) and the required glasses - are also likely to buy more BD3D titles if they have a larger slate to choose from, IHS maintains.

The increased number of 3D BD titles is an important factor in boosting the public’s demand for home 3-D. The number of titles at retail was limited until September 2010, when more 3D BD titles began to hit retail stores.

Movie studios are readying a slew of 3D BD titles this year, with IHS forecasting just over 65 titles for the US market. Walt Disney alone is planning to release at least 15 titles on 3D BD, including the blockbusters Tron Legacy and Tangled, along with Beauty and the Beast and The Lion King, which have been converted from 2D to 3D. These Disney titles will offer further incentive to upgrade to home 3-D hardware.

Warner Bros. will also convert three titles from the enormously profitable Harry Potter series, including Harry Potter and the Order of the Phoenix, Harry Potter and the Half-Blood Prince, and Harry Potter and the Deathly Hallows, Part One. The 3D BDs will be released in time for the last theatrical installment of the Harry Potter franchise, Harry Potter and the Deathly Hallows, Part Two, in the summer of 2011, which will also be available in 3-D to cinema goers.

By far, the largest 3D BD market in 2011 among the four Western territories will be the United States, accounting for 75.2% of consumer spending at $160.8 million, up from $28.4 million last year. US consumers will buy 5.7 million 3D BD titles this year at an average per-title price of $28.33, compared to the roughly 900,000 titles bought in 2010 at the higher price of $31.09. Some 3.2 million US households in 2011 will be 3D BD-enabled, compared to 790,000 last year, with the number expected to exceed 22.5 million in 2014, IHS Screen Digest research shows.

The United Kingdom, which is expected to have about 60 titles on its market in 2011, will be the second-largest 3D BD market of the four territories this year and the third largest worldwide behind Japan. UK consumer spending on 3D BD will reach $25 million, up from $2.5 million last year. By 2014, spending will reach $91.2 million.

Germany will be the third-largest 3D BD market of the four in 2011 with $15.8 million in consumer spending, followed by France with $12.3 million. By 2014, consumer spending in Germany will reach $88.9 million, compared to $46.8 million in France.




The various facets of the 3D home entertainment market will be examined at the forthcoming Blu-ray Disc Academy conference in Hamburg, Germany, on 3-4 May. For details, visit
www.blurayacademy.com
.

Story filed 18.04.11

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