Wednesday, December 31, 2008

3D is going mainstream

Watch TV on PC - 12,000 TV Channels and Movies DreamWorks' CEO says you'll see everything in 3D from animation to drama within five years

Moviegoers will soon fully enter the third dimension in a technical revolution equal to the advent of sound and colour, says Hollywood power player Jeffrey Katzenberg.

The innovation begins in earnest next spring, but it comes with a price: about $5 more per ticket, or roughly 60 per cent more than the current North American average of $7 per ticket.

Katzenberg, the CEO of DreamWorks Animation and Hollywood's unofficial 3D evangelist, says the latest digital advances offer not just physical depth but "emotional dimensionality," and he predicts all movies and theatres will have it within the next five to eight years.

"There is that old cliché that a picture is worth a thousand words. Well, a 3D picture is worth 3,000 words," Katzenberg said in an interview yesterday.

He was in Toronto with a half-hour demo reel of Monsters vs. Aliens, an animated sci-fi comedy that will be DreamWorks Animation's major showcase of 3D technology when it arrives next March.

The film uses a proprietary process called InTru 3D that boasts of offering a far better 3D experience than the unsteady twin-projector systems of decades past. A single digital projector does the job and the glasses required to see the 3D are easier on the eyes than the cardboard red-blue specs of yore.

The return of 3D has been touted for several years, with such films as Beowulf and Meet the Robinsons testing the market to varying results, and with some qualms from studios and exhibitors. But resistance is fast fading in all branches of the movie industry and many people believe 2009 will mark the tipping point where it really catches on.

There are currently 1,500 3D screens in North America, Katzenberg said, and that's expected to rise to 2,500 by the time Monsters vs. Aliens arrives.

By the summer of 2010, when DreamWorks Animation releases Shrek IV in 3D, there will be more than 7,500 screens capable of showing 3D. Even live-action dramas and comedies – Katzenberg used The Queen and Juno as examples – will be released in 3D.

The change won't come cheaply, though. Katzenberg is recommending exhibitors charge $5 more per 3D ticket: "Frankly, it's what we need to charge in order to justify the money being put into the movie theatres and the money that we're putting into making the movies."

Won't moviegoers balk at paying a 60 per cent increase?

"Not if what they see is great."

Even at that price, and even during a time of economic slowdown, a movie ticket is still one of the cheapest forms of entertainment available, he argued.

A major side benefit is that 3D films will cut down on piracy, because they'll be so hard to steal.

He further predicted that people would buy their own designer 3D glasses that they'll carry to theatres with them. Katzenberg has already talked to the upscale Italian eyeglass maker Luxottica about introducing combo 3D/sunglasses by the middle of 2009.

"You're going to the beach in the summertime, what do you do? You take a pair of sunglasses, you take a bathing suit, you take sunscreen. We're used to having things to help us do things. So you'll have a thing to go to the movies."

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Tuesday, December 30, 2008

UPDATE 2-Dreamworks says films delivering profitability

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LOS ANGELES , Dec 11 (Reuters) - DreamWorks Animation SKG Inc (DWA.N: Quote, Profile, Research, Stock Buzz) Chief Executive Jeffrey Katzenberg said on Thursday the company's films were delivering a level of profitability despite the current U.S. recession, which is dramatically slowing the home video market.

Speaking via webcast from his company's analyst day in New York, Katzenberg said his company's two films "Kung Fu Panda" and "Madagascar: Escape 2 Africa" are on their way to becoming two of 2008's highest grossing films.

He also said the company would produce another "Madagascar" sequel in 2012.

Looking ahead, Katzenberg said he remained upbeat about the company's upcoming 3-D release, "Monsters vs. Aliens" in March 2009, saying he believed that as many as 2,500 screens would be 3-D ready when the films comes out.

The Glendale, California-based company plans to make all future films available for 3-D.

Hollywood overall has a lot riding on 3-D, with more than a dozen 3-D films slated to be released next year by various studios, including DreamWorks' "Monsters vs Aliens."

Including IMAX screens, there are about 1,500 screens in the United States and Canada that have the added equipment necessary for 3-D and plans are in place for up 1,000 additional screens to be installed by March 2009, a DreamWorks spokeswoman said.

Katzenberg said he believes there will be as many as 7,500 3-D screens in the marketplace in 18 months.

DreamWorks chief operating officer Ann Daly said the U.S. recession was having a dramatic effect on industrywide home video sales.

Citing information from the company's distributor -- Viacom Inc's (VIAb.N: Quote, Profile, Research, Stock Buzz) Paramount -- and other sources, industrywide overall DVD sales and rentals have declined from last year by about 6 percent, Daly said via webcast from the company's analyst day in New York.

She said higher margins per unit were helping to offset some of the declines in sell-through volumes for DreamWorks, she said.

She also said "Kung Fu Panda" fourth-quarter sales were on their way to exceeding 10 million units on a worldwide basis.

Company officials said that as the DVD market continues to mature, DreamWorks was moving to diversify its revenue streams by focusing on television, Broadway and the the advent of 3-D in theaters. (Reporting by Sue Zeidler, editing by Gerald E. McCormick, Gary Hill) ((Sue Zeidler, 213-840-6495, susan.zeidler@thomsonreuters.com))

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Monday, December 29, 2008

Top Hollywood exec says 3-D is the industry's next big thing

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DALLAS - Don't count on seeing representatives of filmmakers and exhibitors in front of Congress asking for money.

"It's been great," said Alan Stock, Cinemark CEO, discussing his chain's business. "October was the best October in history."

Jeffrey Katzenberg, the CEO of DreamWorks Animation SKG, also has happy news, saying receipts will be up for his company in 2008. But he's so committed to making sure the good box office continues that he's on a 12-city tour to tout the company's March 2009 release, "Monsters vs. Aliens."

It's an unusual tactic for moguls, but Katzenberg, 57, is convinced that the company's proprietary "InTru 3D" technology is going to help make "Monsters vs. Aliens" the future of filmmaking, not just another fun family film starring lovable animated superheroes.

"I think the movie industry is entering the third era of revolutionary change," said Katzenberg, addressing a group of news media representatives, exhibitors, and Texas A&M's Visualization Lab faculty and graduate students at a North Dallas screening Wednesday, where clips from the animated film were shown. "The third one is about bringing the audience into the movie experience. I'm not talking about my father's 3-D."

The two previous film breakthroughs, he said, were the advent of sound in the 1920s and color in the 1930s. But the film business is still pretty much where recorded music was until digital sound superseded vinyl in some important respects, Katzenberg said.

"I think 3-D is an opportunity to re-energize in a very big way what it means to go to the cinema" and in a way that home systems can't yet duplicate, Katzenberg said. "All of our films now are being created from the very beginning for the 3-D process."

His studio is not alone. The concert film "Hannah Montana," as well as "Meet the Robinsons," "Chicken Little" and "The Nightmare Before Christmas," have come from Walt Disney Studios' Motion Pictures Group, and the studio will make more than 15 3-D movies between now and 2011, according to published reports.

"What we need is stuff like this," Stock said after the "Monsters vs. Aliens" clips. "We need quality product."

Stock also likes the fact that 3-D releases typically deliver two to three times the gross per screen that 2-D films do. Katzenberg said his studio plans to release 2-D and 3-D versions of "Monsters vs. Aliens" simultaneously and charge 3-D viewers $5 extra. And there's another advantage: no piracy.

"Ninety percent of piracy is done by people in the theater. A crook sits in the theater with a camcorder," Katzenberg said, adding that 3-D won't show up accurately on a camcorder. "Good luck camcording that."

The clips gave viewers a deep view into the picture in a way that 2-D never has. But those who wore conventional glasses had to put the new hard-plastic 3-D specs - now with black lenses instead of the old blue and red lenses - on over the other pair.

That's not the only bad rap. Katzenberg's pronouncements about the $165 million picture and his claims for the technology prompted one Los Angeles Times headline to suggest that he might be "The Jerry Falwell of 3-D."

Katzenberg fired back in Variety. "Initially, as with color, the economic bar for 3-D is high, so for the foreseeable future many films will continue to be produced in 2-D," Katzenberg wrote. "But, eventually, I believe that all films will be shot in this remarkable medium."

Andy Anderson, a filmmaker and University of Texas at Arlington film and video professor, has a wait-and-see attitude. He's been around long enough to see lots of gee-whiz technology fail to deliver on the hype.

"This happens about once every five years," Anderson wrote in an e-mail. "And where are our flying cars? They promised them to us back in the '50s.

"I've seen it all promised, and it's all fallen apart. Weren't we all going to be wearing headsets by now?"

Katzenberg promises this isn't just more back-to-the-future of film.

"People actually would throw up" when they saw early-era, poorly synchronized 3-D pictures. "I don't think it's a good business to be in to make your customers throw up."

Bart Weiss, co-founder of the Dallas Video Festival and the Video Association of Dallas, is a little less dubious.

"It's really kind of fascinating," said Weiss, who also teaches at UT-Arlington. "The Batman movie was sold out pretty much every day. The 3-D version looked great. The bugaboo is that you still have to wear glasses. I don't think we'll ever be able to get beyond that."

Katzenberg predicts we'll have 3-D, or stereophonic film without glasses, in 10 to 20 years.

Holographic movies will take longer. In the meantime, get ready for eyeglass maker Luxottica to produce a pair of glasses that serve as sun glasses outside and transform into 3-D "movie glasses" in the theater.

"You have stuff: You have a tennis racket; you have stuff to go do things," Katzenberg said. "You will have your movie glasses. You can have clip-on glasses or a prescription."

Weiss says 3-D was born as a reaction to TV and has always been a bit of a novelty act. But now, with the likes of "Titanic" director James Cameron getting into the act with his forthcoming Avatar and the DreamWorks animated films, it could become a format that's taken seriously by critics and audiences, not a curiosity.

"It wasn't fully integrated to storytelling," Weiss said. "When James Cameron is using something, you know it'll be tastefully done."

Still, Weiss said, "The 'Citizen Kane' of 3-D has not been made yet. When it's made, it'll be a different discussion."

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Sunday, December 28, 2008

Katzenberg Spills on the Future of DWA Franchises

Watch TV on PC - 12,000 TV Channels and Movies ComingSoon.net just spent an hour uptown at a special presentation for DreamWorks Animation's March '09 3D animated flick Monsters vs. Aliens presented by the company's CEO Jeffrey Katzenberg. We'll have a full write-up of what Katzenberg showed and told us about the movie soon, but as the presentation came to a close, we asked him about the franchise potential for Monsters vs. Aliens, which he felt was very possible based on the premise.

He also told us how they knew very early that they had bigger story arcs involved in the development of the "Shrek" and "Madagascar" characters that warranted having multiple movies, stating that the 2010 movie Shrek Goes Fourth will get them closer to the story they've wanted to tell since the beginning, which was how Shrek got to the swamp in the first place. (With that in mind, could it be that the fifth "Shrek" movie might be a prequel?)

Katzenberg confirmed that the story of Alex, Marty, Melman and Gloria from Madagascar: Escape 2 Africa isn't complete and they still need to get them back to New York. He confirmed that a third installment has a projected 2012 release date.

Likewise, Katzenberg also hinted that Po's journey to becoming a kung fu master might extend beyond the already announced Kung Fu Panda 2.

Look for our full write-up of this exciting 3D event very soon.

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Saturday, December 27, 2008

First Look: 3-D Monsters vs. Aliens

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Facing an alien invasion? Spring some lovable, '50s-style monsters to battle the extraterrestrial menace.

That's the premise behind Monsters vs. Aliens, the 3-D animated comedy that's coming from DreamWorks early next year.

Directed by Rob Letterman and Conrad Vernon, the movie pits four-eyed alien villain Gallaxhar (voiced by the always hilarious Rainn Wilson) against a military that's so desperate it releases a handful of monsters to defend Earth.

Vintage sci-fi and horror B-movies provided the inspiration for the flick, according to Vernon.

"I thought, 'Wow, this would be great if we could go back and do all the old 1950s monster movies, 'cause that's when monsters made you laugh," he said. "To actually have, you know, horrific monsters, but give them personalities and kind of satirize them at the same time."



This exclusive behind-the-scenes video clip offers a sneak peek at the making of the movie, with its cool-looking animation and impressive cast of voice actors.

The monsters fighting the good fight include California girl Susan Murphy, who turns into Ginormica (Reese Witherspoon) after a wedding day meteor mishap turns; insect-headed science freak Dr. Cockroach, Ph.D. (Hugh Laurie); half-ape, half-fish Missing Link (Will Arnett); gelatinous blue blob B.O.B. (Seth Rogen); and 350-foot grub Insectosaurus.

And who is might enough to command this monstrous team? The President of the United States (voiced by Stephen Colbert, who almost occupied the Marvel White House) and General W.R. Monger (Kiefer Sutherland).

Monsters vs. Aliens is scheduled for release March 27, 2009.

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Friday, December 26, 2008

Katzenberg pitches 3D to Wall St.

Watch TV on PC - 12,000 TV Channels and Movies DreamWorks Animation chief Jeffrey Katzenberg and his top lieutenants touted 3-D as a tonic for Hollywood during a three-hour pitch to Wall Street analysts Thursday.

Headlines were few, but attendees got a revealing tour of the company's balance sheet as well as an early look at scenes from March release "Monsters vs. Aliens."

Katzenberg announced another "Madagascar" installment is in the works, aiming for a 2012 release. He also said the hurdles to exhibs converting to digital and 3-D should be cleared by the end of the first quarter and conceded to some opening-night jitters ahead of Sunday's bow for "Shrek the Musical."

The recession and retail instability is hurting the company's homevid numbers, chief operating officer Ann Daly affirmed. "Kung Fu Panda" will ship about 10 million units, which makes it a top earner overall but shy of earlier projections in the range of 12 million.

Homevid sell-through revenue industrywide will finish 2008 down 6%, Daly estimated, with once-booming new releases slumping 20%.

Theatrical fare is at an all-time high for the four-year-old company, with "Panda" and "Madagascar 2" taking in more than $1.2 billion worldwide.

Focus of the session at Gotham's Ziegfeld Theater was on growth. Not only has DreamWorks made strides since its October 2004 start, execs said, but a projected $5 premium for 3-D ticket sales will greatly enhance profits.

"Because the costs (of 3-D) are fixed, there is substantial leverage and most of the extra revenue falls to the bottom line," said prexy and chief financial officer Lew Coleman.

According to Coleman, had "Shrek the Third" been released in 3-D, assuming a $5 ticket premium and roughly $15 million in extra production and rendering costs, it would have booked $80 million of additional profit.

"Monsters" is the first of a wave of 3-D productions mounted by Hollywood. Initially, Katzenberg said, DreamWorks had hoped there would be 4,000-5,000 3-D screens worldwide by the pic's March launch. Economic turmoil, especially in the credit markets, has held up conversions, though, and the number will reach only about 2,500. Even so, Katzenberg said the company is hoping 40% of admissions will be in 3-D.

On future releases such as the fourth "Shrek" in 2010, Katzenberg said he "would be disappointed if we didn't have at least 70% of admissions in 3-D."

Coleman ran some intriguing numbers on the "generic ultimates" used by the company, meaning a breakdown of all revenue streams for a typical release.

In 2005, a typical release made 55% of its revenue in homevid, 30% in worldwide theaters and the last 15% from TV and other venues. By 2008, that had shifted to 40% homevid, 40% theatrical and 20% TV/other.

Daly pointed to the company's TV growth lately, with such TV specials as "Shrek the Halls" locked up by ABC for 13 years, two similar pic offshoots due in 2009 and 46 eps of "The Penguins of Madagascar" in the works at Nickelodeon.

Sunday's opening of "Shrek" on Broadway reps a $24 million investment, to be amortized over three years, Daly said. No returns are expected until 2010, but if the show's a hit, examples such as "Wicked" or "The Lion King" suggest annual revenue from tours and merchandise could be $100 million to $150 million. Profit would be $30 million to $50 million a year.

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Thursday, December 25, 2008

3D films: the next film revolution?

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They've been the next big thing for the past 50 years, but 3D films have finally come of age. Just the thing to get bums on seats, says Chris Evans

Cinema has already been through two major revolutions in its relatively short life. First there was the transition from silent to talkie, then from black and white to colour. Now Jeffrey Katzenberg, CEO of DreamWorks Animation, believes "3D is the next revolution in the cinema-going experience".

A bold statement, and one tinged with a distinct bias as DreamWorks is one of several Hollywood studios set to release their forthcoming animation projects in the new, digitised 3D format. Titles set to hit our screens include Monsters vs Aliens (2009), A Christmas Carol (2009), Toy Story 3 (2010), Shrek Goes Fourth (2010), and Avatar, due for release in December next year, which is hotly tipped to be the turning point in the 3D revolution.

It is important to point out that 3D is, of course, nothing new. It was first experimented with back in the 1950s and Imax cinemas have been showing films in 3D for the past 30 years. But now, with the advent of digital 3D technology being installed in cinemas worldwide, and the fact that the choice of films in 3D is not only broader but much better, audiences need only head to a multiplex and put on the glasses to immerse themselves in what is proving to be a wholly new way to enjoy the latest studio blockbuster.

"This is digital stereoscopic 3D. It is a far cry from the 3D experience of the 1950s. There is no ghosting and no headaches. It is pin-sharp, laser-sharp, crystal-clear 3D imagery," says Mark Batey, chief executive of the Film Distributors' Association. It's a view supported by Phil Clapp, chief executive of the Cinema Exhibitors' Association. "I have seen excerpts from the upcoming Monsters vs Aliens film and it is incredible. You actually feel immersed in the film, like the action is taking place around you, rather than in front of you, as it is in 2D."

There are currently 65 digital 3D screens in the UK, and more than 2,000 worldwide. Industry experts predict there will be at least 10,000 by 2012. This rapid expansion and advancement in 3D technology is seen by some as a response to the decline in cinema attendance and the rise in alternative viewing platforms such as the internet, PlayStation and cable television.

"Just as it was in the 1950s when the advent of television shook the cinema world to its bones, so in today's world of rapid digital communication, 3D is the cinemas' response to say we are bigger, brighter, bolder and better than anything you will experience at home," Batey says. Unlike the cumbersome, labour-intensive 3D systems of the 1950s, which required two cameras projecting on to the same screen, making synchronisation difficult, the new digital projectors, of which there are three different models – RealD, Dolby Digital Cinema and Imax 3D – require just the one projector run through a computer.

"The projection element is the same in terms of the lens and the lamp, but you have a server into which you plug hard drives with the film on, and that is then unscrambled and played through to the computer on the back of the projection unit," explains Clapp.

By simultaneously selecting two viewpoints, or a left eye and right eye, the technologies enable the brain to converge or fuse the images. By wearing the special glasses, the watcher prevents the image from bleeding over from the left to the right, or vice versa. "These projectors provide a much higher refresh rate between the two complementary eye images because it is stereo so the film producers are recording one version to the right eye and one to the left eye, and the projectors are then able to convert these into a high frame rate. So it is a really seamless effect," says Charlotte Jones, senior analyst of film and cinema at Screen Digest.

Also, unlike the heavy 35mm film reels, 3D digital films are stored on a hard disk, which means it is much easier to transport them from one cinema to the next. "These digital disks are essentially the right-eye and left-eye versions of the film together, and can be taken by bike or van to another site and inserted into a server and played through the digital projector, which is normally positioned alongside a 35mm projector," Batey says.

But the reason so many exhibitors are still holding back from installing the projectors is the expense. One digital projector alone for a single screen costs £40,000 to £50,000, and then to add a 3D upgrade would cost another £10,000 or even £20,000 on top of that.

"In the US, the studios are helping to finance the transition to digital and 3D by subsidising the projectors through the savings they are making as a result of using the cheaper digital prints as opposed to the expensive 35mm reels," Jones says. But outside of America, production companies working on 3D films are less inclined to contribute to the enormous costs, and take-up by the cinemas of the 3D projectors has so far been slow.

However, the potential revenue benefits of 3D are already being proven. The 3D release of films such as Journey to the Center of the Earth, Madagascar: Escape 2 Africa, Fly Me to the Moon and Chicken Little have taken at least two times, and in some cases three times, as much as their 2D releases.

This is partly due to the higher ticket costs of seeing the films in 3D. "To produce an animation film in 3D, you are probably looking at adding another 15 per cent on to the film budget, for a live action you are looking at another 30 per cent, which is why the studios are having to hike up the prices by as much as $5 in the US to recoup costs," Jones says.

Global revenue from 3D ticket sales in 2008 amounted to $240m, approximately 70 per cent of which, or $166m, came from North America. That figure of $166m accounted for roughly 1.8 per cent of total projected North American box-office takings for 2008, and Jones expects the share to climb to approximately 15% in 2009.

The realms of possibility and potential revenue with the new 3D technology are also not just limited to film. Some cinemas are experimenting with beaming live events via satellite into cinemas in 3D. Last week, RealD and 3ality Digital staged the world's first live 3D broadcast of an American football game, at the Mann Chinese 6 theatre in Hollywood.

"That could be really significant. In Europe, for example, they could show the Fifa World Cup live in 3D. That would be incredible," says Jones, adding that "in the near future it will potentially be possible to beam 3D images to mobile phones and into the home. The only problem would be wearing those 3D glasses at home, where you could be playing video games for four or five hours, or watching a few films over the course of an evening." So, in actual fact, while the cinemas are hoping the new 3D experience will draw the young crowd back to their screens, it looks like it could keep them at home even longer.

Big-screen action: The power of Imax

* 'The Dark Knight' director Christopher Nolan filmed six of the film's major action sequences using Imax cameras. As a result, Imax box offices were inundated for weeks with filmgoers intent on seeing Batman and the Joker on the even bigger screen. The film made £360,000 with a single print on a single Imax screen in Manchester – with the aid, it should be noted, of Imax's inflated ticket prices.

* The Imax system was first developed in Canada in the 1970s. Imax can screen films in a much larger format, and with much greater resolution, than a conventional cinema screen. Modern Imax theatres are also equipped with super-sophisticated sound systems.

* Until now, there have been only a handful of Imax screens in the UK, and only one in London – at the BFI in Waterloo. All that will soon change, however, with the introduction of the Imax digital projection system to Europe. Far cheaper to instal and run than its predecessor, digital will allow Imax to roll out across the continent.

As well as screening live sports events and concerts, theatres have a full slate of Imax Hollywood blockbusters lined up for 2009, including 'Watchmen', 'Transformers 2', 'Harry Potter and the Half-Blood Prince', and 'Avatar'.

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