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Author Topic: Analyst: 'Pirates' Was Hurt By 3D As Consumers Tire Of High Ticket Prices
System Notices
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 - posted 05-24-2011 02:26 AM      Profile for System Notices         Edit/Delete Post 
Analyst: 'Pirates' Was Hurt By 3D As Consumers Tire Of High Ticket Prices

Source: deadline.com

quote:
Analyst Richard Greenfield of Wall Street's BTIG has long been skeptical of claims by Jeffrey Katzenberg and James Cameron that 3D would do wonders for the movie business. But now Greenfield says that 3D is actually hurting the industry: "U.S. consumers are increasingly rejecting 3D movies," he said in a report today. Attendance for Disney's Pirates of Caribbean: On Stranger Tides "would have been higher" this past weekend if half of its screens showed the movie in conventional 2D instead of just a third, he says. The evidence? He notes that about 38% of the $90 million in box-office revenue for the film's opening weekend came from non-IMAX 3D screens. That's much lower than the average last year, when 54% of the opening revenues for DreamWorks Animation's Shrek Forever After, and 57% of the initial sales for the studio's How To Train Your Dragon, came from non-IMAX 3D screens. Greenfield says that "pricing remains our single biggest concern, especially with so many 3D movies aimed at the family segment." He figures theaters charged $14.85 a ticket to see Pirates on IMAX 3D, $10.85 for non-IMAX 3D, and $7.60 for 2D. He adds that family films also are hurt by "young children not wanted to wear 3D glasses." His advice: Hollywood should make fewer 3D films in 2012. "Focus on making consumer-desirable films rather than worrying about the technology," he says.

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Joe Redifer
You need a beating today

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 - posted 05-24-2011 04:13 AM      Profile for Joe Redifer   Author's Homepage   Email Joe Redifer   Send New Private Message       Edit/Delete Post 
But fellow forum member Aaron Garman, a 3D critic, went out of his way to purposely see this movie in 3D. He now loves 3D. It's just as groundbreaking (and important) as color and sound, after all. Or maybe he just likes paying more where extra money isn't warranted. Still haven't figured that guy out.

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Aaron Garman
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 - posted 05-24-2011 10:17 AM      Profile for Aaron Garman   Email Aaron Garman   Send New Private Message       Edit/Delete Post 
I wouldn't say I went out of my way. I didn't really want to see the 35mm on a silver screen anyhow because that too does not look all that great. I will say this movie, shot with real 3D cameras, worked on that level. I enjoyed it, and in many scenes the 3D did give some interesting depth to the image that I found cool. I still maintain that in most installations though, 3D still sucks, robs you of a sharper image, and as far as conversions go, it is totally unnecessary.

Another part of it on a totally ridiculous sentimental level is that the movie was playing in my favorite house, sloped floor, baffle wall, and all so the audio experience is much more enjoyable. And Joe, I can't even figure myself out at times.

AJG

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Mike Blakesley
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 - posted 05-24-2011 01:36 PM      Profile for Mike Blakesley   Author's Homepage   Email Mike Blakesley   Send New Private Message       Edit/Delete Post 
Consider the source. That "expert" is Richard Greenfield, from BTIG Research, who has proved over and over that he knows nothing about how the movie business works. He's the same guy who was urging the studios to jack up the film rentals to over 65%.

I am sure the novelty of 3D is wearing off, but what's surprising about that? Everybody knew that was going to happen.

I do think the guy is right about one thing -- the studios should stop making every single "event" movie in 3-D and save the process for when it can actually benefit the movie, like in Avatar. Rango and True Grit proved this year that it's not necessary for a movie to be in 3-D to be a good grosser.

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Frank Angel
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 - posted 05-25-2011 02:44 PM      Profile for Frank Angel   Author's Homepage   Email Frank Angel   Send New Private Message       Edit/Delete Post 
I still say you can't analize what consumers are reacting to without an even playing field. When you have tacked on a surcharge to 3D, it is going to impact BO trends. Before anyone can conclude that interest in 3D is waining, you have to eliminate the surcharge. THEN can actually evaluate whether 3D holds or looses audience compared to 2D. As much as I love 3D, I resist going to films that normally I would have opted to see in 3D just because of the surcharge on principal, knowing what a hoax it is.

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Mike Blakesley
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 - posted 05-25-2011 03:26 PM      Profile for Mike Blakesley   Author's Homepage   Email Mike Blakesley   Send New Private Message       Edit/Delete Post 
I don't see why you think it's a "hoax." If you go to a fancy restaurant you pay more for the higher priced food and nicer atmosphere, don't you? In almost every business, if you get a more premium experience it costs more. Why should a cinema give you the use of an extra 25 grand worth of equipment, plus all the extra labor required, for free?

I can see why people don't like the higher prices though. I've toyed with the idea of doing away with the surcharge and just raising our prices a dollar to make up for it and "spread the load" of the 3D across all the moviegoers -- it would be a lot easier and people wouldn't have sticker shock when they come to the 3D shows -- but I just can't quite get up the nerve to do that. (Yet.)

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Aaron Mehocic
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 - posted 05-28-2011 05:04 PM      Profile for Aaron Mehocic   Email Aaron Mehocic   Send New Private Message       Edit/Delete Post 
quote: Mike Blakesley
Why should a cinema give you the use of an extra 25 grand worth of equipment, plus all the extra labor required, for free?
What "extra labor" is required to run 3D?

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John Wilson
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 - posted 05-28-2011 05:48 PM      Profile for John Wilson   Email John Wilson   Send New Private Message       Edit/Delete Post 
quote: Another Wall Street dipshit
Attendance for Disney's Pirates of Caribbean: On Stranger Tides "would have been higher" this past weekend if half of its screens showed the movie in conventional 2D instead of just a third
Rubbish.

It did worse because the previous two were not exactly great movies. It just stands to reason that there would be a lessening in take for another one.
quote: Frank Angel
As much as I love 3D, I resist going to films that normally I would have opted to see in 3D just because of the surcharge on principal, knowing what a hoax it is.
Frank, why would you say it's a hoax? Surely you of all people can see why the surcharge is there. Someone has to pay for the upgrade. A business must pass on those costs to those who are using the service.

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Frank Cox
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 - posted 05-28-2011 05:51 PM      Profile for Frank Cox   Author's Homepage   Email Frank Cox   Send New Private Message       Edit/Delete Post 
Extra labour:

Handing out the glasses to the customers on the way in.

Washing the glasses, with Dolby.

Picking up the little wrappers and shipping the glasses in and out with Real D.

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Jesse Skeen
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 - posted 05-28-2011 07:40 PM      Profile for Jesse Skeen   Email Jesse Skeen   Send New Private Message       Edit/Delete Post 
If I bring in glasses from a previous movie I saw, and don't take any from the theater, then they should charge me less. As I've said a billion times, I'd go to EVERY 3D movie that came out if theaters hadn't charged extra for them.

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Frank Angel
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 - posted 05-28-2011 07:48 PM      Profile for Frank Angel   Author's Homepage   Email Frank Angel   Send New Private Message       Edit/Delete Post 
You are right; businesses decide what costs they are going to transfer back to the customers all the time. Traditionally, though, exhibition has been very selective in what they will or will not visibly ask the customer to pay for.

Key issue in point, after installing $80K to $100K worth of digital equipment and shouting from the rooftops how much better it is than film ever was, exhibition never added a surcharge for digital equipement and surely with the economic burden digital imposed on the theatre owner, if ANY technology's cost needed to be recouped, it was the digital conversion. But that never happend. Same for the 7.1 sound upgrades or even for digital sound before that; where were the added costs for those premium theatre experience upgrades?

So how come all of a sudden, 3D gets a $3 uptick smacked on the ticket price when the 3D equipment is not nearly as expensive as the digital installation before it? And does anyone REEEEALLLY think after that $24K 3D upgrade is paid for by how many thousands of admissions with a $3 "3D" tag extra, will any exhibitor then drop the price back down to standard prices?

And THAT's why this lad is cynical enough to think they simply added the 3D surcharge because they knew they could. In fact, it was probably the 3D glasses which they figured they could insinuate as the reason for the surcharge, not for the 3D experience or the equipment costs. I am willing to bet that even today, most of the moviegoing public still think the glasses are why they are paying a surcharge (except try bringing in your own RealD glasses and say you don't want to pay the surcharge and see what happens).

And look, I am a capitalist....mostly. I think businesses should charge whatever the market price will bare. If they can dupe the public into paying more for a ticket price, by claiming this that or the other thing and the public buys it -- more power to them. But my personal opinion is that the 3D surcharge is souring the public on 3D.

I wonder how many people would be similarly soured on 7.1 sound or even digital projection if they carried a surcharge but which the public could opt out of by going to a theatre that didn't have the digital (scratchless, dirtless, colorfadeless, last screening the same as the first screening) projectors installed. How many people do you think would say like I hear being said about 3D, "Oh, I am going to see it in a non-digital theatre because digital doesn't add anything to the movie, plus the price is lower." Or, "I am going to see that movie in a theatre that is running it only in 5.1 sound and without a surcharge because who needs 7.1 sound?; it doesn't add anything to the enjoyment of the movie."

If the public were allowed to avoid additional surcharges for equipment upgrades, we might be surprised to find out how many technical improvements they could live without.

So yes, I think this 3D surcharge is, based on the history of exhibition technology upgrades, certainly breaking the mold and a very bad idea all around if, that is, no one cares if 3D survives.

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Claude S. Ayakawa
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 - posted 05-28-2011 09:20 PM      Profile for Claude S. Ayakawa   Author's Homepage   Email Claude S. Ayakawa   Send New Private Message       Edit/Delete Post 
As many of you know, I also love 3-D. THe presentation of early 3-D I saw was anywhere from good to just plain awful. It did not take me too long to realize it was not the the 3-D process itself but the theatre that determines how good 3-D is. Regal's newer Real D installations at the Dole Cannery are excellent but nothing has been done with their first Real D auditorium when I was there for to see " THE CHRONICLES OF NARNIA- The Voyage of The Dawn Trader" a couple of months ago. Before seeing this film recently, the last movie I saw there, JOURNEY TO THE CENTRE OF THE EARTH a couple of years ago was extremely dark and the 3-D picture is still dark. Consolidated has been promoting their TItan XC theatre at the Ward 16 making people believe they have the finest projection system in Hawaii but what they have is a Joke!!! I saw TOY STORY3 there in 3-D when they opened the house and the picture was dark. Very dark and worst than the Dole Cannery 18' original Real D house.

The best house for 3-D in my opinion is Regal's Pearl Highland 16 in their largest auditorium, #12. They feature the best 3-D I have ever seen (Real D) and it is a joy to see 3-D movies there.

It is a plain fact that first impression is lasting and it is unfortunate many theatres that are not properly showing 3-D movies are giving 3-D films a very bad reputation.

I also agree about the extra surcharge for 3-D movies. Because of it, I have passed on many 3-D movies and just waited for the movie to be released on Blu-Ray.

_Claude

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Mike Blakesley
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 - posted 05-28-2011 11:17 PM      Profile for Mike Blakesley   Author's Homepage   Email Mike Blakesley   Send New Private Message       Edit/Delete Post 
quote: Frank Angel
after installing $80K to $100K worth of digital equipment and shouting from the rooftops how much better it is than film ever was, exhibition never added a surcharge for digital equipement
There's a difference. Digital equipment in and of itself doesn't add anything to the basic movie experience; 3D does.

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Victor Liorentas
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 - posted 05-28-2011 11:38 PM      Profile for Victor Liorentas   Email Victor Liorentas   Send New Private Message       Edit/Delete Post 
I find most 3d movies take more away than they bring. [Frown]

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Jesse Skeen
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 - posted 05-28-2011 11:40 PM      Profile for Jesse Skeen   Email Jesse Skeen   Send New Private Message       Edit/Delete Post 
It did in the 1950s too, but they didn't charge extra then. Digital sound added to the movie experience, but they didn't charge extra for that either.

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