Jeffrey Katzenberg on Digital 3D

Jeffrey Katzenberg

At Cinema Expo, Jeffrey Katzenberg, CEO of Dreamworks Animation and one of the most successful visionaries in the entertainment arena, spoke passionately, articulately, and imaginatively about the present and future of digital 3D. His thoughts:

On Dreamworks' plans.

3D is not a gimmick or a trick; this is not your father's 3D; digital 3D can create a sense of depth that pulls audiences into the story - it makes the whole experience more visceral, it heightens the feeling of the movie. All Dreamworks animated movies from 2009 on will be created and shown in 3D. There will be 2D prints available, but only on an as needed basis.

On advances in technology

In the last 18 months, there have been new authoring tools available to capture and/or create 3D images of much higher quality. This is a new kind of filmmaking and, for the first time in decades, it provides everyone with the opportunity to innovate the movie experience. Those tools will make the movies look and feel much different than recent offerings ('Chicken Little', 'Nightmare Before Christmas'. 'Meet The Robinsons') which have just been 'repurposed' 2D movies. The new authoring tools will enable the creation of very different 'premium movies'.

On live action in 3D

3D will go beyond animation beginning in the next few years and we will see many more tent-pole movies created in 3D. Bob Zemeckis is committed; James Cameron is working on a 3D movie; Peter Jackson and Steven Spielberg are collaborating on a series of 3D films. In 2009, there will be 6 to 10 film releases in digital 3D and the ramp up from there will be quick.

Every year, there are about 500 movies released in the US; of those, 65 movies account for 75% of the business. Of those, as many as 45 movies would lend themselves to being produced and shown in digital 3D.

On the exhibitors' role

For the exhibitors, the cost to go from 2D digital to digital 3D is minimal, but the difference in the quality of the movie experience they can offer is huge. The need for a silver screen is 'unfortunate', but not a disabler because 3D box office will pay for it.

On 3D glasses

In a short period of time, the eyeglass industry will recognize the opportunity that digital 3D represents. They will create 'movie glasses for 3D' and you will have your own pair. Theatres will have inexpensive ones to buy…but only if you've forgotten yours.

On a new ticket price structure

It costs our studio about $15 million more to author a movie in 3D, so there should be a ticket price structure to reflect that. It should cost audiences $5 more to see a 3D movie - so normal ticket price plus $5 - and the industry should begin to educate its customers about this new higher quality product. Starbucks offers a good model; people readily pay more for a 'premium experience' and digital 3D is a premium experience.

On the need for 3D screens

By the end of 2009, there will need to be enough digital 3D screens to accommodate two major 3D releases in the market at the same time. In the US, that probably means 8000 - 10,000 screens, or about 20% of the US cinema market.

We really need 8,000 to 10,000 digital 3D screens in the US to accommodate big releases in the US, if 'Shrek', 'Spiderman' and 'Pirates' are any indication. The international market will be further behind.

On counteracting piracy

This is an 'offensive play' rather than a defensive one - but it will help with piracy. 90% of all piracy comes from a camcorder aimed at the screen. You can't 'camcorder' 3D movies.