SOURCE: Rothman Research

Rothman Research

April 06, 2010 09:21 ET

Is 3-D the New Craze for Film Makers and Fans

JOHANNESBURG, SOUTH AFRICA--(Marketwire - April 6, 2010) - -- The 3-D advancement in the last two years with blockbusters like Avatar and Alice in Wonderland may suggest that movie-goers are keen to embrace this concept of film viewing. However, it must be noted that 3-D films have been present since the 1950s in American movie theatres, and have seen a roller-coaster tendency until the beginning of this century where it slowly started to broaden its market, while keeping a niche market format due to its cost to end-users as compared to traditional films. 3-D films have shown to be more profitable for many film-makers even if it does require more investment forefront. Even with tickets costing higher than the traditional films' tickets, people have been willing to pay for a 3-D viewing and one of the factors driving this trend is that people wants to see an evolution. Through the 80s and 90s, one company that has cashed on 3-D films is IMAX Corporation (NASDAQ: IMAX), and as 2010 revenue projections indicate the company can still be a winner as its shares soared 27% after the release of "Alice in Wonderland."

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"IMAX story has not always been rosy. The company mostly targeted a niche market which very often proved seasonal to its revenue stream... however, with more and more movie-makers going 3-D crazy, trend seems to be on an upside for the company which is anticipated to see remarkable surge in revenue in 2010 onwards," commented Mathew Collier of, "demand is there for 3-D films and movie-makers are betting highly on them. Companies like IMAX have the edge as they have introduced their audience with a maximized experience in their theatres. The question that remains to be answered at this point, and maybe it is too early to even utter the words, is what impact the 3-D craze will have on traditional 2-D films on the long-run. Companies like Eastman Kodak Co. (NYSE: EK) which have been supplying the films for film cameras could see their market shrink as the film industry slowly but surely swing toward digital media and technologies."

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In many ways, however, 2-D cinema will never really perish nor will it get into the vintage category. 3-D films have been able to inflate their market due to blockbuster-movies and could well provide the public with a magical alternative to movie-viewing; nevertheless it is important to state that those movies were also played in traditional cinemas where they brought the masses. Read our reports upon free registration at to have an insight.

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