Transcript 3D Slides

Executive Summary
Sony United – Supporting 3D Format
Driving Demand for 3D Content
• Theatrical - Nine new films planned to be theatrically released in 3D in
FYE11 through FYE13, including Men-in-Black III, Spider-Man,
and The Smurfs
• Home Entertainment - Introducing 3D titles on Blu-ray with the release
of Cloudy With a Chance of Meatballs in June 2010, supporting 3D
Bravia launch with product bundling opportunities
• Television - Launch 3D Network in January 2011 in partnership with
Discovery and IMAX
• Technology - Evaluating systems for new 3D program production;
creating and driving industry support of 3D authoring tools,
technologies, and processes; launched Sony 3D Technology Center to
demonstrate Sony’s expertise in 3D content creation/manipulation
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Motion Pictures
Digital Cinema
Rollout Update
• 23,100 digital screens estimated to be installed worldwide by the end of 2010
with 32,900 projected by 2011
o
Today, there are over 8,000 digital screens in North America and 17,000
screens worldwide
• Easier access to capital has allowed deployment entities to gain financing for
the installation of the digital screens
o
In North America, DCIP has received financing and will begin rollout with
AMC, Regal and Cinemark (comprises > 50% of the market)
• Digital 3D is now the standard with 16 3D feature releases from Hollywood
slated for next year (SPE will be releasing Kenny Chesney Summer in 3D in
April 2010, Resident Evil: Afterlife in September 2010 and Priest in
January 2011)
o
Today, there are approx. 3,500 digital 3D screens in North America and
8,300 digital 3D screens worldwide
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Motion Pictures
Potential Gains from 3D Releases
Recent 3D releases have seen significant share of box office
from 3D ticket sales, driving higher revenue
Domestic Box Office of Recent 3D Releases
DBO (to date)
$113M
$115M
$721M
100%
18%
90%
80%
30%
37%
Assuming 60-80% of box office from
3D and reasonable level of
performance:
• Box office increases 21-27% based on
higher ticket price*, before accounting
for potential audience growth
70%
60%
50%
82%
40%
30%
Potential Uplift from 3D Release
70%
63%
20%
10%
0%
Cloudy with a
Chance of
Meatballs
Alice in
Wonderland
3D Box Office
Avatar
• Studio theatrical revenue (net of
glasses cost) is increased 13-17%**
• The net revenue uplift is generally
greater than the $5-12M increase in
production cost to shoot/convert the
film to 3D
2D Box Office
*Assumes long-term avg. ticket price premium of $2.50 (today’s average is $3.50). Excludes IMAX 3D, which has greater ticket price premiums.
** Assumes 50% studio share of global box office and $0.40-$0.55 per ticket cost of glasses.
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