Boxoffice® Pro - March 2014

incentives to encourage studios and exhibitors
to plan for 3D early in the development and
marketing processes for certain movies, says
CEO Lewis. The incentives might include discounts
on royalties, glasses, or marketing help,
he says. The company will focus on potential
break-out hits, he says.
“Our goal is to identify these types of films
early on, work closely alongside the key film
constituents, and dedicate resources to maximize
the performance of each film,” says Lewis.
Cinema operators also are addressing the
issue of screen lighting. By the time 3D images
have passed from the projector through a 3D
filter and the consumer’s glasses, the amount
of light on the screen can be reduced by more
than half. Companies including Dolby and
MasterImage 3D are developing projection
gear that puts more light on the screen. Marcus
Theatres actually uses two separate projector
units in its wide-screen auditoriums to ensure
customers aren’t shortchanged, says Rolando
Rodriguez, president and chief executive officer
of Marcus, the fifth-largest U.S. cinema chain
with 685 screens. About a third are set up for
3D screenings.
“There are the capabilities” needed to solve
the lighting problem, Rodriguez says. “That
shouldn’t be a hindrance. It’s more, so how do
we ensure that the format connects with the
consumer?”
TOP 20 GROSSING 3D MOVIES
1 Avatar $760,507,625
2 Marvel’s The Avengers $623,357,910
3 Toy Story 3 $415,004,880
4 Iron Man 3 $409,013,994
5
Harry Potter and the
Deathly Hallows Part 2
$381,011,219
6 Despicable Me 2 $368,061,265
7
Transformers:
Dark of the Moon
$352,390,543
8 Frozen $340,829,000
9 Alice in Wonderland $334,191,110
10
The Hobbit:
An Unexpected Journey
$303,003,568
11 Up $293,004,164
12 Man of Steel $291,045,518
13 Monsters University $268,492,764
14 The Amazing Spider-Man $262,030,663
15 Gravity $259,673,000
16 Despicable Me $251,513,985
17
18
The Hobbit:
The Desolation of Smaug
Pirates of the Caribbean:
On Stranger Tides
$250,679,000
$241,071,802
19 Shrek Forever After $238,736,787
20 Brave $237,283,207
SOURCE: BOXOFFICE.COM / GROSSES INCLUDE 2D TOTALS
With Gravity, audiences quickly caught
on that the science-fiction adventure tale was
a film that had to be seen in the format, and
preferably on a wide screen. Cuarón used 3D
to immerse his audience in the expanse of outer
space and stun them with effects that included
a terrifying sequence depicting a space station
as it is torn apart by the hurtling debris. About
84 percent of tickets sold worldwide were for
3D showings, says Chabin of the International
3D Society.
Ultimately, success comes down to producing
a movie that people want to see. In this
sense, 3D is no different than any other medium.
Gravity provided spectacular effects, but
the film worked because audiences were captivated
by the story of two astronauts, played by
Clooney and Bullock, stranded in orbit with no
way back to Earth, says Bud Mayo, president
and chief executive of the New Jersey–based
chain Digital Cinema Destinations Corp.
“Gravity demonstrated it’s about the
content,” says Mayo, who helped lead the
transition to digital projection as CEO of
Cinedigm Digital Cinema Corp. “The first and
foremost thing that gets people into theaters is
the answer to the most important question: Do
I want to see this? Then the question becomes,
do I want to see it in 3D? It’s incumbent on
the creative people behind the movie to make it
imperative that you see it in the 3D versions.”
RealD Inc., the largest provider of
3D projection technology, has been
a leading force in bringing three-dimensional
films to cinemas around the
world. Chairman and Chief Executive
Michael Lewis discusses the outlook
for 3D and new technologies that will
improve the format.
BOXOFFICE: There has been a learning
curve for filmmakers and exhibitors
as they figure out how to make
and market 3D movies. Do you feel
they are closer to cracking
that code?
Michael Lewis: I would
say they’ve probably
already cracked it. It’s
like any new technology.
There’s a period of
feeling out and figuring
out how you maximize
it from a technology
and business
standpoint.
Clearly the
ability to use
the technology
is getting easier
QUESTIONS
FOR REALD’S
MICHAEL LEWIS
and cheaper and the results qualitatively
continue to improve, so I think that’s a very
strong selling point.
We’ve seen local-language productions
win an increasing share of the
box office overseas, including films
made in 3D. China’s Journey to the
West: Conquering the Demons, for
example, buried Iron Man 3. How
does this fit into the outlook for 3D
growth?
For us the focus is China, Russia, and
Brazil. China is really interesting. Four of
China’s top six movies last year were 3D. In
Russia, of course, Stalingrad was a big hit,
and that did north of $60 million just in
Russia alone. So a market that was probably
a low single-digit overall percent of our revenue
at RealD starts moving north of double
digits. Indigenous filmmaking is clearly a
growth market.
Laser projection systems promise to
improve the look of 3D movies. What
is RealD doing in this area?
There has been R & D on lasers with other
companies as well, but we think we are
uniquely positioned. The promise of laser
is to get more light on the screen at a lower
cost. We’re reasonably optimistic that this
is where the technology is going. It would
resolve the issue of bulb brightness, and the
potential is there to save on this cost—power
costs and bulb costs. Initially, though,
laser is probably only going to be suitable
for large-screen.
MARCH 2014 BoxOffice ® Pro The Business of Movies 31