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Consumers willing to pay for 3D movies above 3D TV shows, sporting events

Research firm Parks Associates reports a modest increase in awareness of 3DTV amongst US broadband households in 2010, but the mainstream viability of 3D depends on the availability of premium video content and not one-off events such as the World Cup.

The firm's latest report Trends in 3DTV finds 13% of households are familiar with 3DTV, an increase from 10% from the previous quarter. In some cases, 48% of these households are willing to pay for 3D content, provided they have access to the right types of content, including movies and TV shows.

Parks Associates research indicates 3D movies generate the most interest. One-third or fewer of consumers are willing to pay for 3D television shows and sporting events, but nearly one-half are willing to pay for 3D movies. "Hollywood's push to increase its 3D production benefits consumer awareness of the 3D experience and stimulates interest in bringing it to the living room," says Pietro Macchiarella, research analyst with the firm.

"Efforts such as the ESPN 3D broadcast of the 2010 World Cup are great experiments and effective in building awareness of the technology, but they have not resulted in extraordinary 3D TV sales," said. "As content and service providers launch new 3D channels and Blu-ray discs, consumers will start to see more value in this technology, and shipments will increase as a result. By 2014, 80% of the TVs sold in the US will be 3D-ready."

Another company, DisplaySearch, forecasts 3.4 million 3D TVs to be shipped in 2010, with the market expected to reach 42.9 million in 2014. Based on this forecast, 3D TV market penetration is expected to grow from a 5% share of total flat panel TVs in 2010 to 37% in 2014.

While 3DTV may be gaining momentum from the consumer electronics industry, Hollywood, and TV programmers, the technology does not yet warrant significant investment from cable operators, according to research outfit Heavy Reading. "Unlike technologies that demand quick attention by MSOs - including wideband Internet, broadband video, interactive TV advertising, business services, and wireless - cable can allow for 3DTV to simmer on the back burner," comments analyst Craig Leddy, author of the report.

Story filed 02.08.10

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