3D TVs on Track for 150 Percent Sales Growth in 2012, China Industry Association Reports

LAS VEGAS -- Enthusiasm for 3D among Chinese consumers could give the flagging 3D industry the boost it needs, said Levin Tang, secretary general of the China 3D Industry Association, during the keynote at Insight Media’s Projection Summit Tuesday. Consumption of 3D, both at home and in theaters, is rising at a rate proportional to China’s economic growth, Tang said.

Cinema 3D growth is expected to surge due to an agreement signed in February between China Vice President Xi Jinping and U.S. Vice President Joe Biden, which raised the Chinese import quota for U.S.-made movies from 20 to 34 titles, Tang said. There are currently 6,700 3D screens in China, growing from 82 in 2007 to 5,355 at the end of last year, he said. Titanic in 3D has grossed $152 billion in China since it was released April 10, 30 times the movie’s box-office take in Japan and three times that in the U.S., Tang said.

In the 3D TV market, the government-sponsored 3D National Broadcasting Channel, which launched in January using the side-by-side format, averages 13.5 hours a day of 3D programming, Tang said, including prime-time broadcasts between 7:30 p.m. and midnight. Programming has included live events including the Chinese New Year Eve festival, sports, animation, feature films and variety shows, he said, and the network has 3D broadcasting rights for this summer’s Olympic Games including opening and closing ceremonies, track and field events, swimming and gymnastics, he said.

Despite the availability of content, quality remains an issue, Tang said. The quality of locally produced content is “poor” compared with imported content, he said, leading to viewer fatigue and nausea. An association survey showed that while viewers appreciate the “additional depth” of 3D, they're pushing back over distractions from the storyline caused by 3D effects and an “uncomfortable feeling” that can include nausea or dizziness, he said.

Since the 3D channel launched, it has delivered 2,052 hours of 3D programming, including 532 hours of prime-time content, through the end of May, Tang said. Of the 115 million cable subscribers covered by 3D cable TV service, only 9.76 million consumers have subscribed to the 3D trial, representing 8.5 percent of potential customers, Tang said. Image quality is still a limiting factor to adoption, along with a dearth of 3D movies and commercials, he said. In addition, there’s “no unified rendering format for all screens to display at high-quality,” he said. Obstacles for consumer access to 3D viewing “are complicated,” he said, including cable operator compliance, along with availability of updated set-top boxes, 3D-ready TVs and 3D glasses, he said. Still, 95 percent of those surveyed said they'd be willing to take a 3D channel trial, Tang said.

3D TVs continue to sell at a fast pace in China, however, Tang said, and 3D sets accounted for 32 percent of TVs sold in Q1. Some 20 million 3D TVs are forecast to be sold this year in China, a 150 percent jump from last year, he said.