Panasonic Still Committed to Active-Shutter Amid Passive’s Pressure

SAN DIEGO -- Facing pressure from low-priced passive 3D TVs and inexpensive polarized glasses from LG and Vizio, Panasonic will introduce sub-$100 active-shutter glasses this year, Jim Sanduski, senior vice president of sales at Panasonic, told us after a TV panel at the DisplaySearch Flat Panel Display Conference Wednesday.

During the panel, Sanduski acknowledged that active-shutter 3D TV makers will be at a “disadvantage” at retail due to logistical challenges including glasses’ battery life. He said that despite active-shutter technology’s challenges in the “last three feet of the retail experience with consumers,” Panasonic believes “quality 3D is paramount” so the company will continue to “singularly focus” on active-shutter glasses. “We will have to overcome the challenges that active glasses necessitate versus passive,” he said.

Panasonic’s first-generation active-shutter glasses used replaceable batteries. The second-generation models added rechargeable batteries and $30 to the retail price. “As technology matures, look for prices to come down on glasses,” Sanduski said.

3D’s struggles to date have largely centered on lack of content, and exclusive bundles have frustrated consumers who want access to premium 3D Blu-ray titles including Avatar. When we asked Sanduski about the future of those bundling deals, he said, “As a manufacturer we would like those days to end.” Panasonic made a “very significant investment” to secure the rights to Avatar to help drive consumer demand for 3D, he said, “but the studios are hesitant to release blockbuster titles in 3D until they feel there’s salability in that title.” TV makers felt they had to encourage studios to release top titles in 3D to drive demand for sets, but the costs were steep, he said. “In an ideal world we wouldn’t have to do that and there wouldn’t be the tie-in of particular movies to specific vendors,” he said. Exclusive bundling deals will continue into 2011, he said, “but probably to a lesser degree.” Avatar will be available exclusively to buyers of Panasonic 3D TVs through the end of this year, he said. “It’s our featured movie title."

Sanduski acknowledged specialty retailers’ disappointment during the critical holiday sales season when inventories dried up on the company’s well-received VT series of 3D TVs. “It wasn’t good for anyone,” he said, adding “the short answer is yes” that the company will boost the amount of high-end product for that channel in 2011. “We would have loved to fill that demand. It’s good for the average price point and for our channel partners,” he said. Supply will come from larger screen sizes including 65-, 60- and 55-inch models, he said. “We're taking steps to ensure we have a good supply for the retail channel and not run out like we did last year,” he said.

Of Panasonic’s dozen new 2011 plasma 3D TV models launched this week in New York (CED March 2 p1) only three are 50 inches or under, a segment where plasma came under intense pricing pressure in 2010. Most of Panasonic’s 2011 3D lineup, which also includes two LCD models, employs 2D-3D conversion chips to help shore up content for 3D TVs. The company had come out staunchly opposed to that feature in the past, viewing it as a dilution of the 3D experience. Sanduski downplayed the conversion feature Wednesday. “We're not touting 2D to 3D conversion because it’s obviously not as good an experience as material that was shot natively in 3D,” he said. Acknowledging competitive market pressure, he said, “It was a modest cost adder so we said, ‘why not?’ so that we're not at a competitive disadvantage.” He added, “Some people may find it to be a satisfactory experience."

We asked Sanduski if the company might make a similar about-face next year if passive 3D TV takes off with consumers. “We're steadfastly committed to active-shutter technology,” he said. “One of the big knocks around active-shutter has been around the cost of the glasses, and it’s a strong initiative on our part to make glasses more affordable.” He said, “There are other things we're looking at,” but wouldn’t elaborate. Sanduski noted that LG will have both active and passive 3D TVs in the market this year, “and it will be interesting to see how they play that.” Vizio has committed fully to passive “and it’s about value,” he said. “In terms of picture performance and 3D experience, from a physics point of view, active will always rule the day.”