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3D TVs - The Wave of the Future of Just a Hyped Up Vision

3D TVs - The Wave of the Future of Just a Hyped Up Vision

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Published by AccuVal Associates
Have HDTVs finally hit mainstream in time to become obsolete?
Have HDTVs finally hit mainstream in time to become obsolete?

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Published by: AccuVal Associates on Mar 31, 2010
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05/12/2014

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Mar 2010
3D TVs: The Wave of the Future or Just a Hyped Up Vision?
While 3D televisions are being introduced as the “new” next best technological development intelevision, the 3D concept has been around for more than 150 years. In 1844 the first stereoscope, acamera capable of taking 3D pictures, was introduced. In 1851 a picture of Queen Victoria was displayedin 3D at The Great Exhibition. By 1855, a Stereo Animation Camera was invented, and the first 3D movie,“The Power of Love”, was released in 1922. As television became more popular in the 1950’s, more 3Dmovies were produced, including a special version of “House of Wax” in 1953. None of this pushedconsumers to demand 3D television sets or manufacturers to start producing 3D sets – until now. Due tosignificant advances in technology, the 3D experience has reached new heights and depths – visually.
SUPPLY
New sets available now
As of March 10, 2010, the new technology is here. Panasonic launched its new 3D TV in a joint promotion with Best Buy. Samsung andSony have also developed 3D televisions that are available for pre-order. The final costs for the sets are still being determined, but rangebetween $2,000 and $9,000 (glasses not included).
Highly competitive market competes relentlessly for market share
The marketplace for televisions is extremely competitive as manufacturers compete for valuable market share and seek economies ofscale necessary to make a profit. Consumers usually benefit from this competition, with falling prices and razor thin profit margins. Butvolume makes this arena an attractive place for businesses to compete. The Nielsen Company reports, that in the U.S., there continuesto be on average, more televisions per home (2.86 sets) than people (2.5 people). From 1975 to 2009, the average number of televisionssets per household increased every year. This presents a tremendous opportunity for sales.
Imports drive supply, domestic production has all but vanished
As price became a more dominant factor in purchasing decisions, U.S. manufacturers turned to low-wage countries to produce product atmore competitive prices. This exodus has resulted in no remaining significant production of flat panel televisions domestically. InFebruary 2009, Sony closed its last manufacturing facility in the U.S. Supply of televisions is almost entirely driven by imports, whichthemselves fell in 2009.
DEMAND
Availability and type of content key driver of demand; youth will lead the charge
Companies who are vested in the manufacturing of hardware and publishing/broadcasting will be working the hardest to produce contentto drive demand. Sony is the best example of this. In 2010, the company will be releasing the 3D enabled BRAVIA television set. At thesame time, Sony Pictures Entertainment began releasing movies on Blu-ray, starting with “Cloudy with a Chance of Meatballs” on January5, 2010. Playstation®3 is working to upgrade consoles to 3D. Here’s a snapshot of what’s happening on three key content fronts.
Television:
A variety of television networks have been testing the waters of 3D broadcasts. ESPN plans on featuring at least 85 sportingevents during 2010 in 3D. These events will include the 2010 FIFA World Cup, college football, college basketball and Summer XGames. According to ESPN, the network has been testing 3D broadcasting for over two years, showing select events to sampleaudiences to test the effectiveness of the broadcast. Sporting events and video games are a few of the most likely uses of 3DTV’s. Initially, to be able to broadcast in 3D, simultaneous with standard broadcasting, a second production crew is needed. 3Dposes more challenges than standard broadcasts, since two images are required in order to create the 3D effect - at least twocameras must be used. One camera creates the image for the left eye, and second camera creates the image for the right eye.This process requires precision from the camera crew and post-production, as an individual film has to be produced for each eye.
Insights Industry InsightsThe Wave of the Future or Just a Hyped Up Vision?
Page 1of 2AccuVal | Insights | Industry Insights | The Wave of the Future or Just a Hyped Up Vision?3/31/2010http://www.accuval.net/insights/industryinsights/detail.php?ID=129

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