Source: http://www.ft.com/cms/s/0/94f9e866-ee99-11de-944c-00144feab49a.html
Hollywood's heavy investment in 3D has passed its biggest test yet, analysts and cinema executives said yesterday, as they tallied the takings from Avatar , James Cameron's 3D epic.
Imax and RealD, two companies behind rival projection technologies, said they accounted for a disproportionate share of Avatar's $242m of opening weekend sales.
Fox, the News Corp-owned studio, raised its early box office estimates, showing that Avatar beat records for either a non-sequel or an adaptation [of a book], with US box office sales of $77m even as northeastern states were battered by heavy snow.
Strong international sales lifted the global total to $242m, $10m more than originally estimated.
Richard Gelfond, chief executive of Imax, said the large-screen exhibitor took 12 per cent of the US box office despite having under 3 per cent of the screens.
RealD, whose equipment was in a third of the US screens showing Avatar , said it accounted for over half of the domestic gross, or nearly $40m.
Mr Gelfond predicted a long box office run for Avatar , making up for the opening weekend snowstorms.
This movie is going to have very long legs, he said. This is something that'll deliver over time, not just a weekend.
Imax is not scheduling another release until March 5, when Disney's Alice in Wonderland , by Tim Burton, will open.
I believe one of the stories about Avatar is going to be its international performance, Mr Gelfond added. Some of its messages, particularly its environmental message and its anti-military message, resonate with audiences in Europe and Asia.
Analysts said the early box office figures supported exhibitors' investments in 3D, with Lazard estimating that the average 3D screen took 3.1 times as much as the average 2D screen from double the attendance.
At worst we estimate this would mean Avatar will break even for Fox, said Ben Stretch, an analyst with MacQuarie Securities, noting that Avatar did not benefit from an established fan base from books or previous films.
Barclays Capital analysts estimated that positive word-of-mouth recommendations could herald $275m-$300m in total domestic takings.
Imax, which has converted about two-thirds of its estate to 3D, grossed $9.5m from 178 US screens and $4.1m from 58 screens outside the US.
Avatar , which cost an estimated $240m to produce and is spending about $150m-$200m on marketing, is to be followed in 2010 by 3D releases from the Toy Story, Twilight, Harry Potter and Shrek franchises.
Cinemas stepped up 3D investment this year, expanding RealD's installed base by 200 per cent. 3D projectors accounted for more than 90 per cent of new digital installations in the first half of 2009, according to analysts at Screen Digest.
Hollywood's heavy investment in 3D has passed its biggest test yet, analysts and cinema executives said yesterday, as they tallied the takings from Avatar , James Cameron's 3D epic.
Imax and RealD, two companies behind rival projection technologies, said they accounted for a disproportionate share of Avatar's $242m of opening weekend sales.
Fox, the News Corp-owned studio, raised its early box office estimates, showing that Avatar beat records for either a non-sequel or an adaptation [of a book], with US box office sales of $77m even as northeastern states were battered by heavy snow.
Strong international sales lifted the global total to $242m, $10m more than originally estimated.
Richard Gelfond, chief executive of Imax, said the large-screen exhibitor took 12 per cent of the US box office despite having under 3 per cent of the screens.
RealD, whose equipment was in a third of the US screens showing Avatar , said it accounted for over half of the domestic gross, or nearly $40m.
Mr Gelfond predicted a long box office run for Avatar , making up for the opening weekend snowstorms.
This movie is going to have very long legs, he said. This is something that'll deliver over time, not just a weekend.
Imax is not scheduling another release until March 5, when Disney's Alice in Wonderland , by Tim Burton, will open.
I believe one of the stories about Avatar is going to be its international performance, Mr Gelfond added. Some of its messages, particularly its environmental message and its anti-military message, resonate with audiences in Europe and Asia.
Analysts said the early box office figures supported exhibitors' investments in 3D, with Lazard estimating that the average 3D screen took 3.1 times as much as the average 2D screen from double the attendance.
At worst we estimate this would mean Avatar will break even for Fox, said Ben Stretch, an analyst with MacQuarie Securities, noting that Avatar did not benefit from an established fan base from books or previous films.
Barclays Capital analysts estimated that positive word-of-mouth recommendations could herald $275m-$300m in total domestic takings.
Imax, which has converted about two-thirds of its estate to 3D, grossed $9.5m from 178 US screens and $4.1m from 58 screens outside the US.
Avatar , which cost an estimated $240m to produce and is spending about $150m-$200m on marketing, is to be followed in 2010 by 3D releases from the Toy Story, Twilight, Harry Potter and Shrek franchises.
Cinemas stepped up 3D investment this year, expanding RealD's installed base by 200 per cent. 3D projectors accounted for more than 90 per cent of new digital installations in the first half of 2009, according to analysts at Screen Digest.
