3D movies helped push the phenomenal ticket sales of films such as “Avatar” and “The Dark Knight”. IMAX cinemas have begun to open in great numbers which has helped that public company’s fortunes.
The trouble with 3D is that it is valuable as a way to market action films but has no value for romantic movies, dramas, and comedies which make up a huge part of the box office.
It is also not clear that 3D is only a fad, as it was in the 1950s. Viewers usually have to wear odd glasses to get the experience.
The rush to 3D has caused consumer electronics companies to begin to offer 3D TVs and 3D video games. These industries will undoubted draw billions of dollars for research, manufacturing, and marketing.
The rise of 3D has become popular enough the Nokia (NYSE: NOK) and Intel (NYSE: INTC), which are already partners in the smartphone app business in a venture call Meego, will build the technology into new handsets. Finland’s University of Oulu will help build the product.
3D, it seems, works best on large screens where the effects are easier to discern. The idea that it will work on 1-inch screens seem to be flawed. The public has been slow to adopt smartphones for video playback which has restricted the sale of premium TV and film content for the devices. 3D is an even smaller market, which means it adoption could be extremely small and probably insufficient to justify an expensive push.
Just a technology has gained early adoption on one consumer-centric platform does not mean it will do the same on all platforms. The Nokia and Intel venture has all the hallmarks of an overreaching into a market which is not likely to be there at all.
Douglas A. McIntyre
Top Gaining Stocks
Top Losing Stocks