Economic impact of the new 3D technology on the worldwide movie industry

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Foreword

Writing this dissertation was a long and exhausting process which included many setbacks and failures. Nevertheless it also was fulfilling and exciting as I was driven by my passion and interest in movies and cinemas in general. I always intended to work for the movie industry one day and hold well- grounded hopes of achieving this goal in the near future. Maybe this dissertation will help to convince the studios of my passion and capabilities.

My thanks go to Mr Nick Bowen, who was an outstanding tutor and helped me through rough and inconvenient times with his competence and great sense of humour.

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I also would like to thank me interviewees Mr Arwed Fischer and Mr Jan Fantl, who provided me with many important information and an inside into the industry. Without them, a big part of the report would not have reached the standard it has now.

Finally, I am very grateful for the help of my parents who made it possible for me to go to London and provided me with everything I needed in order to be successful and happy in the future. I do not want to forget to thank everybody else who supported me during this tough time and cheered me up after one of the occasional setbacks.

Executive Summary

Recently the film studios are experiencing a boost of attendances and ticket sales despite the financial crisis. This already happened in past recessions and therefore will be analysed in this report. One reason for that economical immunity seems to be the technological development such as sound and colour in the past or 3D cinema nowadays.

Nevertheless there are some issues the industry has to deal with at the moment, e.g. piracy or substitution goods like videogames. Although 3D movies did fail continuously in the past in terms of economical success, the studios tried it again with an advanced technology and exceeded all expectations when Avatar was released. In this context factors such as rising ticket prices or the limited number of 3D capable cinemas play a big role as well in order to determine the future potential the 3D technology. A few companies already started to produce and sell 3D capable TVs which are supposed to the next economical success the movie landscape. IMAX cinemas suffered a long period of very low attendances and decreasing ticket sales until advanced 3D technology has been used to produce movies. Since then the IMAX group notes record breaking attendances and boosting profits. Two surveys have been analyzed and compared to each other. One, published in 2005 by Opinion Dynamics Corporation already showed some curious facts on 3D cinema and its likely success in the future.

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