The industry has struggled to contend with new channels for distributing entertainment to consumers
New York, NY (PRWEB) October 16, 2014
Starting as a relatively niche segment of all film production throughout the 20th century, the 3D Movie Production industry erupted over the past decade into the fastest growing phenomenon in cinema. Much of this was due to changes in consumer preferences for films that offer a more immersive experience, a trend that occurred in unison with rapid improvements to movie production technology. According to IBISWorld Industry Analyst Nick Petrillo, “Developments such as high-definition screen resolution, digital distribution, advanced computer graphics, increasingly affordable 3D-capable camera technology and the proliferation of massive film exhibitor franchises such as IMAX and Cineplex all contributed to the industry's immense growth in recent years.”
Despite the industry's tremendous revenue growth early on in the five years to 2014, the industry has struggled to contend with new channels for distributing entertainment to consumers. Movie theater attendance has slowly declined over the past five years, as competition from at-home streaming content providers, such as Netflix, Amazon, HBOGO and iTunes, has increasingly provided consumers with a more convenient means of viewing a wider selection of films at a fraction of the cost of purchasing a movie ticket. While audiences still attend movie theaters in person to view summer blockbusters and children's movies that make use of 3D technology, the 3D Movie Production industry's total revenue has been unable to reach the massive success it had achieved early on in the five-year period to 2014. IBISWorld projects the industry will experience a slight decline in 2014.
The 3D Movie Production industry exhibits a high level of market share concentration. The industry's top three players are expected to generate a large majority of total revenue in 2014, and these production studios have collectively attained more than half of the industry's revenue for the past five years. High market share concentration makes sense; large production houses such as Walt Disney and Warner Brothers have the financial and technical resources to support large projects. “These major operators are able to front the significant costs of feature film production, but enjoy high returns when a film becomes successful,” says Petrillo. Additionally, these studios are capable of producing feature films that are more compatible with 3D formats, including genres such as adventure, fantasy, science fiction and animation.
Industry revenue has declined every year since 2010, a year in which the industry experienced tremendous revenue growth as a result of massively successful 3D film releases. Industry revenue has grown subtly over the entire five-year period to 2014, with the industry's early growth concealing the recent decline experienced in the years since 2010. IBISWorld projects the five-year period to 2019 to be far more stable; 3D movies continue to draw large crowds, although the comparative euphoria over the 3D experience has largely worn thin. Over the five years to 2019, industry revenue is projected to decline slightly.
For more information, visit IBISWorld’s 3D Movie Production in the US industry report page.
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IBISWorld industry Report Key Topics
This industry produces and distributes three-dimensional (3D) films that create the illusion of depth in motion pictures. The industry does not manufacture 3D accessories like Blu-ray discs and 3D glasses, nor does it distribute other forms of 3D media, like television programs and video games.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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