National 3D Demo Days

As we indicated in our Trends in 3DTV report, educating consumers about 3DTV is one of the biggest challenges that the CE industry faces. Experiential marketing is going to play a more important role than it has played for the launch of other consumer electronics. 3D requires "being seen". Considering that most of the existing advertising channels are two-dimensional, manufacturers will have to rely on retail channels and road shows to promote their products. We are likely to see more initiatives like the National 3D Demo Days, currently promoted by CEA and ESPN.

3DTV coming of age soon

Jim O'Neill wrote a very nice overview of 3DTV on FierceIPTV.

The concept of 3D is becoming more of a reality as 3D-ready consumer electronics become more affordable and the availability of content increases.

There are many obstacles on the way to success: low consumer engagement, difficulties in marketing 3DTV effectively, advertising issues, etc.

However, as I told Jim, "there is no doubt in my mind that 3D is here to stay, and it will be a standard feature in sets being sold."

Increasing consumer awareness, lower prices, and quality content will contribute to its success.

More content and lower costs will push 3D into more CE

Parks Associates reports a modest increase in awareness of 3DTV among U.S. broadband households in 2010, but the mainstream viability of 3D depends on availability of premium video content and not one-off events such as the World Cup.

The firm’s latest report Trends in 3DTV finds 13% of households are familiar with 3DTV, an increase from 10% from the previous quarter. In some cases, 48% of these households are willing to pay for 3D content, provided they have access to the right types of content, including movies and TV shows.

Efforts such as the ESPN 3D broadcast of the 2010 World Cup are great experiments and effective in building awareness of the technology, but they have not resulted in extraordinary 3D TV sales. As content and service providers launch new 3D channels and Blu-ray discs, consumers will start to see more value in this technology, and shipments will increase as a result. By 2014, 80% of the TVs sold in the U.S. will be 3D-ready.

Parks Associates research indicates 3D movies generate the most interest from U.S. consumers. One-third or fewer of consumers are willing to pay for 3D television shows and sporting events, but nearly one-half are willing to pay for 3D movies. Trends in 3DTV provides a detailed overview of 3D technology and examines business strategies by industry segment. The report analyzes the availability of content, reviews issues and progress with each content delivery method, and describes the impact of 3D on CE.