Friday, January 15, 2010

3-D Sales Reach $1 Billion 2009, Lifting Box Office (Update1) - BusinessWeek

 
Moviegoers spent $1 billion to see 3-D films at U.S. and Canadian theaters last year, as features including News Corp.'s "Avatar" drove total box-office revenue to a record.

Ticket sales for 3-D showings accounted for 9.4 percent of the total in 2009, according to Hollywood.com Box-Office. "Avatar," still in theaters, made $212 million in U.S. sales last year from 3-D screenings, about 75 percent of its $283.6 million total, the Los Angeles-based researcher said.

Studios are planning to release at least 16 3-D movies this year, up from 14 in 2009, Hollywood.com said. North American ticket sales surpassed $10 billion for the first time last year, buoyed by the higher prices 3-D movies command. James Cameron's "Avatar" became the No. 2 movie of all time with $1.37 billion in worldwide sales as of Jan. 12, according to Box Office Mojo, a Sherman Oaks, California-based researcher.

"The consumer has voted," Jeffrey Katzenberg, chief executive officer of DreamWorks Animation SKG Inc., said in a Jan. 7 interview with Bloomberg Television. "This is what they want. It has been a huge boon to the theater business."

Films with 2-D and 3-D versions had total U.S. sales of $1.6 billion, according to Hollywood.com. The average for 3-D showings was $71.5 million per movie, or 65 percent of the total, the researcher said.

"Up," released in May by Burbank, California-based Walt Disney Co., has made $683 million worldwide, while DreamWorks Animation's March release, "Monsters vs. Aliens," made $381.5 million in theaters.

'Alice in Wonderland'

Studios are turning to 3-D to bolster movie attendance and ticket prices. Tickets for 3-D showings typically cost about $3 more, Katzenberg said in October.

Disney will release "Alice in Wonderland," directed by Tim Burton, and "Toy Story 3" in 3-D this year, according to Internet Movie Database. Viacom Inc.'s Paramount is adopting the format for "Jackass 3-D," the third film in the series featuring outrageous stunts, and Weinstein Co. will release "Piranha 3-D," according to Hollywood.com.

"Hollywood would like to have a situation where people see 3-D as a part of any movie," Paul Dergarabedian, film analyst at Hollywood.com, said in an interview. "Not just science- fiction, animated and action movies."

There were 3,659 screens in the U.S. and Canada equipped with 3-D projectors as of Jan. 5, according to the National Association of Theater Owners.

The three largest theater chains, Regal Entertainment Group, AMC Entertainment Holdings Inc. and Cinemark Holdings Inc. are trying to raise as much as $725 million to add more digital screens needed for 3-D films, two people with knowledge of the plan said in September.

Cameron's "Titanic," released in 1997, is the top- grossing movie of all time with $1.84 billion worldwide, according to Box Office Mojo."

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