Lower prices, devices with passive glasses could help sales

Stereoscopic 3D television dominated last year’s CES, producing so much hype that the technology has struggled since then to live up to what were probably unrealistic expectations. Set sales have not set the retailing world on fire, with companies like Best Buy recently blaming disappointing earnings on slower than expected 3D TV sales and research studies finding that consumers have concerns about glasses, the cost of 3D sets and lack of content.

Still, the technology is in its early stages and there will be a number of developments that broadcasters should be watching in terms of glasses, pricing and devices. Recent consumer research by both Frank N. Magid Associates and the Cable & Telecommunications Association for Marketing found consumers were interested in 3D, with Magid researchers reporting that about 8% planned to buy a 3D TV in 2011, about the same levels of interest that were seen in the early days of flat panel HDTVs.

But consumers also fretted about prices, glasses and the lack of content, with the CTAM study finding that 68% cited high prices as a reason for not wanting to purchase a 3D, 57% complaining about the need for glasses and 44% citing the lack of 3D programming.

Two of those problems are likely to ease this year, as more content becomes available and prices drop. DirecTV, which launched two linear 3D services last summer, is add more 3D movies to its lineup and Comcast has just rolled out a 3D VOD offering to complement ESPN 3D. Over 50 Hollywood movies are expected to be released next years.

Gagnon at Display search notes that manufacturers are likely to increasingly sell 3D sets separately without glasses, which will reduce the initial sticker shock. “3D sets are likely to see some pretty good growth over the next three or four years but only because manufactures will pretty much wipe away the premium associated with them by selling the glasses after the fact,” he explains.

CE manufacturers will probably be showing some glasses free 3D screens but these are generally targeted to the digital signage market or will be small screens for use in gaming. One big problem with glasses-free 3D screens remains the fact that they can generally only be viewed from limited viewing angles and have poorer resolution. “They are much better but I think it is still years away from being a product for the home,” notes 3ality Digital CEO Steve Schklair.

Schklair adds that CES will see the launch of more 3D TVs using passive glasses, which are much less expensive, and that there will be more consumer 3D camcorders, which will help drive interest technology.

Some broadcasters have already experimented with 3D production in the U.S. but to date these events have only aired on cable, satellite or telco providers. Internationally, however, some broadcasters in Australia and Italy did free over the air 3D broadcasts in 2010. “There are no technology limitations for 3D broadcasts,” notes Schklair, who was involved in the Australian broadcasts of rugby matches by Seven Network and Nine Network. “You can go over the air as easily as you can do satellite or cable. It is really a business issues. With satellite and cable there is a pay-per-view model to support the product but with free-to-air, it has to be advertising sponsored. So the question is whether an advertiser will step up when there aren’t a lot of sets in the market.”

Looking into 2011, he says the biggest thing to watch for will be the production of a live event with only one crew. Typically, ESPN and others will use two crews to produce the 3D and 2D feeds, which increases the cost of production. While ESPN has experimented with producing a 2D and 3D events with only one crew, no one has broadcast a live event with just one crew.

“One milestone that I’m looking forward to is seeing one crew shooting 3D and taking both the 2D and 3D from the same cameras,” notes Schklair. “That is the economic holy grail. Frankly I think it is totally doable,” though it will require some compromises for the 2D version.

Original story at http://www.broadcastingcable.com/article/461574-CES_Stereoscopic_3D_TV_2_0.php