NPD Finds 3D `Wow' Factor At Retail

By Greg Tarr -- TWICE, 10/26/2010

Port Washington, N.Y. - The NPD Group has launched a 3D TV micro site called the 3D 360° Monitor designed to track consumer impressions of 3DTV equipment and content at retail.

The first installment of the quarterly study was filed in August and found that a higher percentage of consumers who experience a 3D TV demo at retail report being "amazed" by what they saw.

Still, a significant percentage who had a 3D demo in store reported not seeing any effect at all, said Ross Rubin, NPD Group's industry analysis executive director.

According to the report, 20 percent of consumers reported being "amazed" by the 3D demos in stores, vs. only 15 percent who felt that way about their experience in the theater.  

"Since high-quality digital 3D has been available in the theaters for a few years now, consumers have come to expect impressive effects that are worth the price of admission," said Ross Rubin, The NPD Group executive director. "However, 3D TVs are relatively new and those viewing a demo don't have to pay for the privilege, resulting in lower expectations that the sets are often exceeding."

He added that many consumers come into retail demos with somewhat low expectations, due to their perception of what 3D content had looked like in the past.

Among those who reported not being able to see any effect, Rubin suggested this may have occurred because the glasses they wore were not turned on or properly powered.

Theaters are providing most consumers with their first modern 3D experience. Twenty-six percent of consumers stated they experienced 3D entertainment in theaters in the past 12 months followed by retail outlets with 4 percent.

Those interested in 3D, the report found, are being driven by the cinematic experience, with the vast majority of consumers intending to purchase a 3D television seeking larger screens and multiple pairs of 3D glasses.

 Still, NPD said, there is a fundamental gap between consumer's generally favorable impressions of 3D and actually acquiring a 3D TV set.

Forty two percent of consumers surveyed said they were at least somewhat interested in watching 3D movies at home, but only 11 percent intend to purchase a 3D television, according to the study.

More than half of those intending to purchase a 3D product said that 3D enhances the viewing experience, and 42 percent agree with the statement that 3D is the future.

 Objections resulted over the cost of a 3D TV equipment and the need to wear glasses. In addition, NPD said, there are concerns about the relatively short amount of time the technology has been available, and whether or not all of the technical issues have been addressed.

 "As we have seen with other technologies that have transitioned from the theater to the home theater, lower prices and more content will help drive adoption of 3D," said Rubin. "There is clearly an opportunity to build an ecosystem of products that enable this dynamic way to experience content."

 The 3D 360° Monitor Report covers awareness, interest and intent around the breadth of devices and content tracked by NPD. More than 1,100 respondents from NPD's online panel completed the first wave of this survey in August.