Some of the momentum for 3-D was lost recently when ESPN said that by year's end it would scrap its ESPN 3D channel carried by several pay-TV providers. And just last week, the BBC announced that it was immediately shutting down its 3-D channel.
rnBut the plan that Hollywood and TV makers have for 3-D to become a fixture in the home is not playing out as scripted.rn
rn3-D has found its way into about 12 million U.S. homes, according to market tracking firm The NPD Group. TV makers have included it as a feature on mid- and higher-priced displays over the last three years or so. However, 3-D-ready TV sales are starting to slow and few use 3-D features regularly.rn
rnEven though many homes have 3-D TVs and are watching events and 3-D Blu-ray Discs, there are signs that the move to TV broadcasts in 3-D might have been premature. "It's not clear the case can be made for it in the short term," says Mary Shelton Rose, an advisory partner at PricewaterhouseCoopers.rn
rnSome of the momentum for 3-D was lost recently when ESPN said that by year's end it would scrap its ESPN 3D channel carried by several pay-TV providers. And just last week, the BBC announced that it was immediately shutting down its 3-D channel.rn
rnrnA Bad Signrnrn
rnESPN cited lack of consumer interest. "Really, the growth in 3-D in the home wasn't there. We had to make a decision," says ESPN's Katina Arnold. Among events that ESPN had broadcast in 3-D were 2010 World Cup soccer matches, the Masters tournament, the X Games college football bowl games and this year's Wimbledon. For now, ESPN plans to focus on its new experimental broadcast for the next wave of TVs -- Ultra HD sets that boast four times the resolution of current HD.rn
rnESPN's bowing out is a bad sign for home growth of the format, says Sweta Dash, senior director of display research and strategy at research firm IHS. "Sports events, gaming and movies are supposed to be the main drivers for 3-D TV," she says. "ESPN's announcement will push consumers to question the future of 3-D TV at home."rn
rnLast year, DirecTV and Panasonic decided to shutter the n3D channel that they had collaborated on. Instead, the TV provider continues to offer occasional 3-D events, pay-per-view 3-D movies such as Monsters Inc. and the 3net channel, a joint venture of Sony, Discovery and IMAX.rn
rnDirecTV is "always ready to provide more if demand increases," said DirecTV's Jade Ekstedt.rn
rnIn theaters, 3-D is event-driven. The biggest 3-D film ever was Avatar, which did about 80% of its $760 million revenue in 3-D sales, according to BoxOfficeMojo.com, and boosted 3-D box office revenue to $2.2 billion in 2010. The last two years have seen 3-D ticket sales stabilize at $1.8 billion in 2011 and 2012, even though last year saw fewer 3-D releases. (continued...)
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