I recently read an article on The Wrap entitled “3D at the box office: Down, Down, Down…” http://www.thewrap.com/movies/article/3d-box-office-down-down-down-19845?page=0,0 . The Los Angeles Times also had a piece bsed on that article: http://latimesblogs.latimes.com/the_big_picture/2010/08/no-surprises-dept-hollywood-killing-3d-golden-goose-faster-than-expected.html .
Basically, the articles argues that the initial BO demand for 3D releases is declining rapidly – and this is for highly anticipated titles!

It can be argued that there are films that shoud be 3D (Inception anyone?) and others that should not but in the end, I believe that 3D will become just like surround sound. The first “Surround” sound movie I saw was Earthquake. At that time, the surround sound experience was about shaking you out of your seat. Now, it is an everyday enhancement to every film. The same thing happened with CGI. It seems that we all have to “overdose” on new technology before we learn that moderation and discreet use of new technology make for a better viewing experience. Isn’t that what James Cameron did?

Personally, I like the idea of Premium VOD. In my casual conversations with people, many say they rarely go to the theater mostly due to poor content and their perceived ROI. They like the idea of streaming or downloading from Netflix or other providers as well as paying for VOD even if the content marginally appeals to them.

Premium VOD fills a void where people can experience a new release possibly as an individual, couple or family without having to dress up, go out, have dinner, find baby-sitter, etc. (these are added costs that have to be considered in this economy) and they can change the channel if they don’t like the content.

As for the piracy issue which is a huge problem in certain parts of the world, I’m not convinced PVOD will have a significant effect mainly because I don’t think that “audience” segment will increase significantly despite the increase in quality. I may be completely wrong here. My take is that the segment of people buying pirated copies is a market share the distributors do not want to cater to because it doesn’t make financial sense. I don’t know the exact figures, but I’m assuming that the amount of money lost to piracy is still not high enough for distributors to adjust their prices, outside of including a certain percentage in their loss column which they can write-off.

Could a distributor provide a “pristine” copy of their new release on the internet for say $3-5? How many purchases would that generate? Of course this goes against their current models, exhibitors, broadcasters would be up in arms and if the internet becomes the premier source for distribution then what would exhibitors or broadcasters play? I don’t think one negates the other.

I think the bottom line is that there needs to be a centralized digital distribution platform that theaters can tap into as well as VOD and the internet. Day and Date allows customers to decide where and when they want…