RealD3D Discussion Thread

[Hunk Golden]

RealD Shares Slammed After It Reports Surprisingly Low 3D Box Office For June

http://www.deadline.com/2013/07/real...june/#comments

Sorta' dovetails with the recent'ish reports:

-3D at-home interest/adoption/usage being low
-ESPN pulling 3D channel due to low interest
-BBC pulling 3D offerings due to low interest

Here’s more sign of trouble for the 3D movie business. The stock price for the 3D technology company dropped about 12% in initial trading this morning after it reported that films on its screens generated $291M at global box offices in June, with 54% from U.S. venues. That’s a much lower number than analysts expected, and means RealD’s box office results are down about 10% in the quarter vs the same period last year. The problem is that consumers are “becoming increasingly choosy about which 3D movies they will pay a premium for given the significant ramp in 3D titles available,” says B. Riley analyst Eric Wold who just lowered his stock price target for RealD to $15 from $16.25. He’s given up his belief that 3D sales were missing the mark because theaters had too few 3D screens. Wold says that he has “confirmed with 4 of the top 5 domestic exhibitors that no additional 3D screens are needed to meet demand.” And he warns that this “could be a leading indicator of international trends.” RealD’s June report also rattled Stifel analyst Benjamin Mogil. He expected to see $463M from global box offices, with 46% from the U.S. — and just lowered his stock price target to $15 from $20. He had recommended the shares in the belief that the company would see strong growth overseas while the domestic market remained stable. The latest numbers “fly in the face of both of those views,” he says although he’s waiting to see the July results before he decides whether to abandon his “buy” recommendation.

The bolded text is how I feel these days. My theater raised the 3D premium to $3.50 (from $3.00). It really screws up the movie cash deals, so I don't see many 3D movies in the theater anymore. I'm really choosy. I'd rather just wait and buy the 3D Blu which is a MUCH better value (unless they pull a Disney/OZ thing).

I feel lucky to have $5 matinees. No way in hell am I paying $8.50 instead of $5, with the exception of the rare event movie (if I end up seeing Pacific Rim, I'll see that in 3D). I also found out (and was pissed off) that the AMC Gold passes you can get from the Costco deal don't cover 3D/IMAX. Even though it reads that right on the ticket ("extra surcharge for 3D/IMAX"), I assumed that meant IF the final cost of the 3D/IMAX ticket was more than the value of the pass (which I'd always thought to be worth $12) -- THEN you'd pay the extra (whatever balance was left due). Not true. I used a pass (worth at least $12) to see World War Z 3D on a Monday night. The ticket price was $11.25, so I figured it'd be covered. It wasn't. I had to pay the $3.50 3D fee, making the value of my Gold pass $7.75 in this case (and thus totally wasting it). I know very few people probably care, as most may not even have AMC's (and/or AMC Gold passes). But the main point is that they're going to soak you for the 3D upcharge any way you slice it, so I just don't see me paying to see many 3D movies at the theater anymore.