Paramount and Disney in $1B 3D movie deal...

Bryancd · August 14, 2008, 05:03:52 AM

As I have been saying in a number of different discussion regarding the future of 3D and LucasFilms efforts in this area, 3D is seen as a major player in the future of film entertainment.

$1bn deal set to launch 3-D film business
By Matthew Garrahan in Los Angeles

Published: August 13 2008 23:31 | Last updated: August 13 2008 23:31

A consortium of the biggest US cinema chains is closing in on a $1bn deal that will pave the way for a new generation of money-spinning 3-D movies, after securing provisional backing from three key Hollywood studios.

Walt Disney and Paramount Pictures are on the verge of signing a contract with Digital Cinema Implementation Partners, a consortium made up of the AMC, Regal and Cinemark chains, according to people familiar with the situation.

The consortium, which declined to comment, is also in advanced talks with Universal Studios. The four studios all declined to comment.

Digital systems enable the projection of 3-D movies, which can earn as much as five times per screen as films shown in 2-D thanks to the willingness of audiences to pay a premium.

Walt Disney's recent Hannah Montana film highlighted the format's potential when it set a box-office record, generating more than $65m in the US from only 700 3-D-capable screens.

There are about 40,000 cinema screens in the US, but only 700 can show films in 3-D. There are hardly any digital-ready screens in the international marketplace, so the studios have set their sights on the US first. However, they are also betting that the format will eventually transform the global box office.

JPMorgan Chase is leading the DCIP financing, which has been delayed by tightening credit markets and the reluctance of some studios to come on board. But with commitments falling into place, the consortium has moved closer to its goal.

Studios are producing more movies in 3-D, with 13 to be released in 2009. Fox has lined up James Cameron's Avatar and Ice Age 3, while Disney will release Bolt this year and plans to reissue Toy Story next year in 3-D. It also has Toy Story 3 in the pipeline, which will be released in 3-D.

Universal will release the animated Coraline in the format next year, while Paramount, which distributes DreamWorks Animation's films, puts out the 3-D Monsters vs Aliens in March.

George Lucas plans to reissue the Star Wars films in 3-D, which has given renewed impetus to the digital conversion plans because of the success of the series and its passionate fan base.

Rico · August 14, 2008, 05:45:31 AM

Yeah - because 3-D films have been such a box office gold mine over the decades they have been around. LOL! It's content that matters - not gimmicks. I use "The Dark Knight" as my latest example. Amazing movie that people are loving just fine without 3-D batarangs whizzing at them. "Journey to the Center of Earth" in 3-D released around the same time - probably won't even make a profit until DVD sales.

I'm all for new technology but if they really think this is going to drive people back to theaters by the car load they are dreaming.

Bryancd · August 14, 2008, 06:01:18 AM

That opinion not withstanding, clearly the major studios and LucasFilm see the business differently...but what do they know, they just toss away 1 Billion dollars for kicks! ;)

Rico's a Luddite!

It's kinda like that iPhone that was destined to be a bust.... ;)

Rico · August 14, 2008, 06:06:44 AM

First time I have ever been called that! LOL! All I'm saying is a hit movie is not made by a gimmick. And I can't think of one 3-D film that's EVER been a hit movie.

Bryancd · August 14, 2008, 06:16:22 AM

LOL! Just because 3D hasn't been successful doesn't mean it can't be IF the technology advances to a point where the immersive experience is better executed. I have mentioned before in regards to LucasFilm, that there is a very active effort to advance the technology to make that a reality. To say that "Dark Knight" can be a box office hit without 3D isn't a valid argument. One has nothing to do with the other.
Theater revenue, not box office, has been in a steady state of decline for years. That's why we have seen so much consolidation in the industry. Theater owners need new forms of entertainment and studios are clearly looking at 3D as a new source of revenue. It's not a "gimmick" it's a different product entirely. 2D films will likely always be the main format, but films made in 3D or 2D films converted to 3D can create a whole new niche.

billybob476 · August 14, 2008, 06:22:20 AM

I think to make it viable it will have top be a seamless experience. They need to find a way to get rid of the 3d glasses. I saw Harry Potter in 3D and honestly the 'put on your glasses now' and then the resulting effect took me out of the movie.

Rico · August 14, 2008, 06:22:35 AM

I completely disagree about "The Dark Knight" being a valid comparison. You are stating they want to get people back into theaters. A great movie will do this. That was my point. They have tried various 3-D technologies for a long time and I will tell you it isn't the 3-D that makes these films fail - it's the content of the films. That is what is important. And I stand by that.

billybob476 · August 14, 2008, 06:26:18 AM

Quote from: Rico on August 14, 2008, 06:22:35 AM
I completely disagree about "The Dark Knight" being a valid comparison. You are stating they want to get people back into theaters. A great movie will do this. That was my point. They have tried various 3-D technologies for a long time and I will tell you it isn't the 3-D that makes these films fail - it's the content of the films. That is what is important. And I stand by that.

However the Dark Knight makes another semi-related point. People are much more motivated to go see this movie in IMAX because of the new way in which the technology was leveraged in the film. We can't know yet but it may set a precedent in regard to how IMAX is used in film production.

As I stated above, I dislike the way 3d is currently being used in films. However, if someone comes up with a new and innovative way to integrate it into the experience, it may change my mind.

Bryancd · August 14, 2008, 06:27:08 AM

It's not valid as one has nothing to do with the other. It's a given that a quality film will drive box office. That's one part of the biz model which will continue. 3D could be a secondary source of revenue and contribute a new revenue stream they currently don't have. No one is suggesting the futiure of film is 3D, what they are saying is that 3D could be a NEW source of revenue.

..hello, is this thing on... ;)

Bryancd · August 14, 2008, 06:29:25 AM

Quote from: billybob476 on August 14, 2008, 06:26:18 AM
Quote from: Rico on August 14, 2008, 06:22:35 AM
I completely disagree about "The Dark Knight" being a valid comparison. You are stating they want to get people back into theaters. A great movie will do this. That was my point. They have tried various 3-D technologies for a long time and I will tell you it isn't the 3-D that makes these films fail - it's the content of the films. That is what is important. And I stand by that.

However the Dark Knight makes another semi-related point. People are much more motivated to go see this movie in IMAX because of the new way in which the technology was leveraged in the film. We can't know yet but it may set a precedent in regard to how IMAX is used in film production.

As I stated above, I dislike the way 3d is currently being used in films. However, if someone comes up with a new and innovative way to integrate it into the experience, it may change my mind.

Good point. I actually intentionaly waited to see DK in a iMax format theater. So there clearly is room for alternate formats. And I agree BillyBob that the experience needs to be seemless for the audience. I have heard that people who have seen some of what LucasFilm is working on have been very impressed.

Rico · August 14, 2008, 06:32:16 AM

Billy - good follow up to what my point is exactly. People are going to see "The Dark Knight" in IMAX because it's a great film, not because of the IMAX factor. I'd love to have both a great film and have it in some new package: IMAX, 3-D, holographic. It's just been my experience that it's rare when that happens.

Bryancd · August 14, 2008, 06:38:21 AM

Good grief.
In reading the press release, no where does it say "let's make crap movies in 3D and people will come!" It's simply an exploration of a new format for what we all hope will be quality movies with a variety of ways to view them.

Rico · August 14, 2008, 06:47:02 AM

Bryan - I must semi-quote the Emperor from "Return of the Jedi" for you,

"Your misguided faith in these Hollywood studios will be your undoing."

;)

billybob476 · August 14, 2008, 06:49:24 AM

Quote from: Rico on August 14, 2008, 06:47:02 AM
Bryan - I must semi-quote the Emperor from "Return of the Jedi" for you,

"Your misguided faith in these Hollywood studios will be your undoing."

;)

And your faith in the moviegoing public will be yours!

:)

Bryancd · August 14, 2008, 06:50:53 AM

LOL!!!!

Anyway, I for one look forward to seeing what they can come up with.