3-D glasses a sticking point for movie industry

More than a dozen 3-D films will hit multiplexes this year, and theaters are installing thousands of digital 3-D systems amid fervid public approval of the fledgling technology.

If the industry could only figure out how to pay for the 3-D glasses.

Complicated virtual-print-fee (VPF) agreements are in place to fund the rollout of digital hardware, enabling theaters to add the 3-D systems. But until reusable 3-D glasses come into greater use or the $1-per-pair cost for disposables is cut substantially, squabbling will continue over millions of dollars in costs tied to the extra-dimensional eyewear.

With an installed base of fewer than 1,400 domestic 3-D screens, distribution has been limited, keeping the cost of outfitting customers in the low- to mid-single-digits. But once 3-D movies start playing in 2,000 or more theaters at a time, that expense is expected to swell quickly to $10 million or more per release.

Such outlays come on top of about $15 million per picture in extra production costs tied to 3-D, as well as multimillion-dollar VPF payments. 20th Century Fox executives quietly spread the word a couple months ago that they intended to rein in their payments on glasses, but details of a new arrangement have yet to emerge. (more…)