[DMW Mediawire]
A squabble between movies studios and theaters has already had an effect on the stock market, and may soon affect audiences as well. It started when Sony Pictures Entertainment sent out letters that said it would no longer pick up the cost of handing out 3D glasses after May 2012. The National Association of Theater Owners reacted the way anyone would expect, and on Thursday 3D technology company RealD Inc. ended the day with its shares closing at $10.42, down 15 percent.
After news of the letters leaked out Wednesday, NATO, which is the world’s largest exhibition trade organization, hit back almost immediately in a statement that concluded: “Sony would be well advised to revisit its decision.” In the reasoning that led up to that warning, NATO said “it has been understood” since 2005 that theater owners would pay for the technology and modifications needed to show digital 3D, and implying it was arrogant of Sony to make such a decision without consulting them first. Additionally, “NATO believes Sony’s suggestion is insensitive to our patrons, particularly in the midst of continuing economic distress,” it read. …
RealD, the first to suffer in all this, is the market leader in digital 3D. It licenses its RealD Cinema Systems projection and viewing technology to motion picture exhibitors around the world. That’s relevant because 3D glasses are supplied free in the Americas, while patrons elsewhere must bring their own, buy them and keep them for future films, or pay a small fee to rent them. Dolby 3D, another major name in the industry, makes a point of not charging licensing or other ongoing costs to theaters. Its glasses are made to last for numerous screenings, and they are sold to the theaters outright.
Read the full story here: http://www.dmwmedia.com/news/2011/09/29/nobody-wants-to-pay-for-3d-glasses-including-theaters-and-studios