Analyst: 3D ‘Toy Story 3’ Box Office Declined
21 Jun, 2010 By: Erik GruenwedelToy Story 3
Despite Toy Story 3’s impressive opening box office exceeding $109 million — a record for a Pixar Animation Studios’ release — the percentage of revenue from 3D screens was 1% lower than it was for Shrek Forever After, according to analyst Richard Greenfield.
Toy Story 3, the first 3D release for the venerable franchise, was released on the most 3D screens ever available for a theatrical premiere, and the first G-rated film in the format this year.
The BTIG Research media analyst said 3D represented 60% of Toy Story 3 revenue, compared with 61% for Shrek Forever After and 70% for Alice in Wonderland — Disney’s year-to-date box office champ.
In addition Toy Story 3 revenue from IMAX 3D declined 2% and 3%, respectively, compared with Alice and How to Train Your Dragon. It increased 1% compared with Shrek.
Specifically, Greenfield said the novelty of 3D has passed for most consumers interested in the formerly gimmicky format. Curiosity now supplanted by the usual consumer arbiter: Bang for the buck.
He said increasing numbers of families are weighing the value of spending money on premium priced 3D tickets against lower-priced 2D tickets.
He cited a $15.50 youth 3D ticket price in New York City as excessive when dealing with multiple children. Indeed, the national average for a 2D ticket was $7.50 in 2009, according to the National Association of Theatre Owners.
“We fear 3D fatigue,” Greenfield wrote in a blog post. “We believe movie exhibitors could generate higher box office results, especially on family films, by lowering the 3D ticket surcharges (both IMAX 3D and non-IMAX 3D).”
The analyst added that lower ticket prices would drive more people to 3D, and mitigate the risk from alienating consumers when they see a “bad” movie in the format, underscoring sentiment they wasted money on the premium ticket.
Indeed, Disney CEO Bob Iger, in a recent financial call, cautioned flooding the market in 3D releases, opting instead that earmarked titles in the format should be done strategically, and not as an afterthought.
The next major studio 3D film on schedule is Paramount Pictures family title The Last Airbender, which opens July 1.
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