3-D Movies Have Lost Their Edge

For the first time since 2009, theatrical attendance for 3-D movies is projected to decline, according to a report released by Fitch Ratings this week.

According to the report, movie theater attendance for 2013 does not measure up to the attendance for last years' films which included several franchise blockbusters.

"Attendance likely benefited from the initial proliferation of 3-D films," the study's authors wrote.

"However, the initial excitement has dwindled, and consumers are focused again on the overall quality of the film and are weighing the cost of a premium ticket versus a base 2-D ticket," they wrote.

For the past two years, box office revenue for the United States and Canada remains $1.8 billion. A slight decline in 2013 is expected despite several upcoming 3-D movies such as "Iron Man 3," "Man of Steel" and "Star Trek into Darkness."

Box offices worldwide last year improved to a record-breaking $34.7 billion with blockbusters like "The Dark Knight Rises," "The Hunger Games" and "The Avengers."

The report found that audiences are unhappy spending $3 to $4 extra to see films in 3-D. Fitch’s study explains that although going to the movies is still perceived to be a lower-cost form of entertainment, increased pricing, especially on 3-D films, may diminish that perception.

“I don’t think it’s worth it. I don’t get the thrill from 3-D movies. The only movie I ever wanted to see in 3-D is 'Avatar',” Chris Hicks, a student at the University of Georgia, said.

"Avatar" was the first film to gross $2 billion and had the highest opening weekend for a film that was entirely in 3-D. Technological advancements became prominent in the 3-D movie industry after "Avatar's" release but the box office sales are still dropping.

Viewers are becoming increasingly aware that the increasing cost of seeing a 3-D movie is not justified by the quality of the movie.

“Spending extra money to see a movie in 3-D doesn’t appeal to me. It gives me a headache most of the time honestly,” Hicks said.

As for the future, Fitch expects the film industry to have favorable economic results but it will still wane in comparison to 2012.

The Power of Internet Fundraising

Since "Veronica Mars" was cancelled in 2007 after three seasons, fans have wanted more.

Last month, show creator Rob Thomas posted a campaign to Kickstarter, a company that provides medium to raise money through crowd funding, to raise money for a "Veronica Mars" movie. The goal was to raise $2 million in 30 days.

Thomas pleaded with Warner Bros. Entertainment Inc. for years to give closure to the fans and to create a film version. 

Thomas and Warner Bros. reached an agreement that if he could raise the $2 million in 30 days for production costs, Warner Bros. would front the rest of the money for marketing and distribution.

"It was either going to be a Warner Bros. movie or it wasn't going to exist," Thomas said in an interview with Bloomberg Businessweek.

10 hours after the campaign was posted, fans surpassed the goal.

When the campaign closed Friday, April 12, 91,585 backers pledged $5,702,153 towards the movie.

This project is the fastest to reach $1 million and the fastest to reach $2 million. It is the all-time highest –funded project in Kickstarter’s FILM category, the third highest-funded project in Kickstarter history and had the most project backers of any project in Kickstarter history, according to the Kickstarter website.

The movie is set to film this summer and has an early 2014 release date.

"I'm excited because I was very upset the show got cancelled," Jennifer Jones, a student at the University of Georgia, said.

"I got so excited when I found out they were trying to do this. The series finale ended on a cliffhanger and I was irate about it. I want closure on what guy she is going to be with," Jones said.

The single biggest backer was Steven Dengler, a wealthy entrepreneur. He pledged $10,0000 mostly out of his love for Internet fundraising. For his donation, he will have a small speaking role in the film.

“Thanks to this campaign, I’m going to get to write and direct the thing I care most about creatively in my career. It’s well worth the effort. I still can’t believe people entered their credit-card numbers on the Internet to fund this thing,” Thomas said in the Bloomberg Businessweek interview.

New Studio Near Savannah Creates Major Employment Opportunities

Medient Studios, after considering offers from Pittsburgh and New York, executed the Memorandum of Understanding (MOU) for the development of a new studio near Savannah, Ga.

There are plans to build a $90 million movie studio in Effingham County, 15 miles outside of Savannah, Ga. The cost includes $10 million for land, $40 million for equipment and $40 million for buildings, according to the Savannah Morning News.

The production and distribution company is headquartered in Hollywood, Calif. and also has presence in India.

The $10 million for land will be received over a 20-year lease but no payment is due for the first two years. Rent for the third year and each subsequent year will cost around $555,555 annually.

According to John Henry, Effingham Industrial Development Authority's CEO, Medient will pay no payments in lieu of taxes or property tax for the 20 years.

"This project truly has the potential to be a game changer for this entire region. We believe that our area will see significant benefit from this project for years to come,” Henry stated in Medient’s press release about the project.

The Medient campus will be built on The Effingham County IDA's Interstate 16 property and will be environmentally friendly. Health care, day care and schooling for employees and their families will be provided.

The studio will strive to reduce the cost of film production with a combination of state approved tax credits, insourcing and technology and equipment efficiencies.

The new studio is expected to create at least 1,000 new permanent jobs. Henry estimates the average salary for these jobs will be around $39,000 annually.

The studio will be on a 1,500-acre site and contain video-production and film.

“The project will be the largest in the US and as much of the site will be open to visitors, it is also expected to become a major tourist destination in the country,” Medient said in the press release.

Films produced by Medient Studios include "Yellow", "Garp" and "Bombil and Beatrice."

The Master Plan is completed and has been submitted to the County for official approval. Construction is expected to begin in summer, 2013.