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3-D TV falls flat: ESPN to kill 3-D broadcasts
By PETER SVENSSON , AP Technology Writers

NEW YORK (AP) — ESPN's decision to shut down its 3-D channel by the end of the year is the latest sign the format won't revolutionize entertainment as the industry once hoped.

Troubling signs for 3-D have been on the horizon for the last year or so. ESPN 3D's audience ratings were below The Nielsen Co.'s measurable threshold, and in March, the Motion Picture Association said box office revenue for 3-D showings in the U.S. and Canada held steady at $1.8 billion in 2012. The number of 3-D films released in the period dropped by 20 percent.

"The ESPN decision is a sign that the 3-D ecosystem is not healthy," said Laura Martin, an analyst with investment banking firm Needham & Co. "It must be there's not enough demand for 3-D TV."

The sports network said there weren't enough viewers to make 3-D broadcasts worth it. It didn't say exactly how many viewers it had, but the number was "extremely limited and not growing," the network said.

Last year, an estimated 6 percent of TVs in the U.S. were able to show 3-D programming, according to the most recent data from research firm IHS Screen Digest. Even homes that have 3-D TVs don't appear to be using them very much, said IHS analyst Sweta Dash.

The lack of programming and the discomfort of having to wear special glasses could be contributing to the problem, she said.

"It's not convenient for people to watch for hours and hours with glasses," Dash said. "They get tired."

ESPN 3D launched in 2010 as one of nine 3-D channels that followed the release of James Cameron's blockbuster film, "Avatar." TV makers rushed to introduce 3-D sets as well. ESPN said at the time that it expected a "3-D tsunami" in the industry.

3net, a 24-hour-a-day 3-D channel that launched in February 2011 under the ownership of Sony Corp., Discovery Communications Inc. and Imax Corp., appeared to be unfazed by ESPN's announcement.

"Although we don't comment on the activities of other companies, their decision has no impact on our business," the venture said in a statement.

IHS's analyst Dash said there appears to be a bigger appetite for 3-D TVs overseas in markets such as China. IHS estimates that 49.6 million 3-D TVs will be sold globally this year, up from 32.8 million last year.

And home video sales of 3-D Blu-ray discs are still growing. IHS says it expects consumers worldwide to spend $668 million on 3-D Blu-rays this year, up from $416 million last year.

The disc format is "very much still alive and kicking," said IHS analyst Tony Gunnarsson, who added that 3-D Blu-rays account for about 15 percent of all Blu-ray spending in the U.S.

But TV manufacturers have recently switched their focus from 3-D to "ultrahigh definition," a format that increases the pixel count of high-definition TVs by four times.

At the International Consumer Electronics Show in January, companies like Sony, LG Electronics Inc., Sharp Corp., and Samsung Electronics Co. all showed off so-called "ultra HD" sets that were meant to be within the price range of middle income early adopters. Sony's 55-inch model sells for $5,000.

One benefit of the ultra HD format is that viewing doesn't require special glasses, and because people can sit closer to the screen without a loss in quality, bigger screens can replicate the immersion of 3-D video.

Ultra HD is also easier to handle on the production end.

With 3-D TV, two cameras have to be rigged together on a special mount to create the 3-D effect. And because viewers can get dizzy with quick cuts, camera operators specialized in 3-D stay focused on single shots for longer. That makes it hard for producers to simply use "one eye" of a 3-D camera for 2-D broadcasts. Instead, camera positions and personnel costs were just multiplied for events shot in both formats.

Along with higher costs, any viewing on 3-D platforms draw viewers away from the standard broadcast, said Rob Willox, director of large sensor technology for Sony Electronics, in an interview last month about the differences between the two formats.

"There are a lot more costs, and you're not increasing audience share, you're dividing it," he said.

In contrast, ultra HD video is more easily scaled down to regular HD, meaning that high-end cameras can be used for viewers watching on TVs of either standard.

Even as it made plans to close down its 3-D channel, ESPN said it was a leader in 3-D productions, having produced 380 events in 3-D over the last 3 years.

"Nobody knows more about sports in 3-D than ESPN, and we will be ready to provide the service to fans if or when 3-D does take off," it said in a statement. "We continue to experiment with things like ultrahigh definition."

___

Ryan Nakashima reported from Los Angeles.

Copyright 2013 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
21Comments
Jun 13, 2013 3:17AM
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3d is overrated and the people who make the TV's overpriced them to the nth degree hoping to cash in.
Jun 13, 2013 4:30AM
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3-D TV is a bust? WOW, who would have thought that???
Jun 13, 2013 4:04AM
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I have 3D TV, I don't watch sports programs with it but I do watch movies with it. Sadly, you cannot get 3D movies from netflix, redbox, amazon instant video. The content provide by Comcast is minimal.
Jun 13, 2013 3:30AM
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Still, there are those who want a 3-D set, and the prices of them have gone down...Walmart had one for around $600.  There are even some 3-D sets that use the exact same Real D 3-D glasses used in the movie theaters.  3-D will remain an option for most people who really want the 3-d experience in their home.
Jun 13, 2013 5:05AM
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  3D TV was unfortunately killed off because of lack of content for home users and the movie industry gouging its customers in the theaters.  I myself refused to pay the $5- $7 increase in ticket price to see a movie in 3D only to have the movie theater place "3D glasses drop boxes" at the exits so customers could return them for reuse.

  I myself have known this format would die over a year ago when I saw the initial complaints of lack of content and movie prices and the industry did nothing since to prevent it, but they sure as hell pushed a lot of 3D sets out of the stores and into homes ..... I remember what they did during the Beta Max / VCR days as well as the 8 track audio tape vs. the cassette ... wasn't going to fall for their deceit again.

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