Fox Pressing for Reusable Glasses as 3-D Films Ramp Up

Fox, a unit of News Corp. is getting into the 3-D game for the first time this year with two high-profile releases - Ice Age: Dawn of the Dinosaurs July 1 and James Cameron's sci-fi epic Avatar in December. Indeed, Hollywood studios will release a record number of 3-D films this year, and probably again in 2010.

The 3-D feature should result in even bigger box office grosses for the films, but more viewers also means more plastic 3-D glasses that are supposed to be deposited into recycling bins after the show, but frequently aren't despite widespread signage in theaters.

If the current model for glasses continues, Fox projects "hundreds of millions of pairs" of glasses could be thrown out, and that's a serious environmental issue, Julian Levin, executive vice-president of digital exhibition at Fox, said in an interview with Dow Jones.

RealD, whose 3-D system involves single-use recyclable glasses, currently holds about 90% of the market. Its recycling program has collected "millions" of 3-D glasses so far, and it's testing reusable eyewear in certain markets, a spokeswoman said. The reusable program is expected to process "tens of millions" of glasses through the summer and will be operated by RealD as a courtesy, with no additional charge to exhibition partners or moviegoers, she added.

Other industry players are already employing reusable glasses, including Imax, Dolby Laboratories and XpanD, which Fox's Levin noted is better for the environment and makes more economic sense over the long run too. Eventually, he hopes consumers will bring their personal pair of 3-D glasses to the theater.

Recent reports say studios and exhibitors are at odds over who should pay for 3-D glasses - a cost that's been absorbed by studios so far - and that Fox in particular wanted to change things starting with its Ice Age release. Though cost wasn't an issue in 3-D's beginning, when films like Walt Disney's Chicken Little played on fewer than 100 digital 3-D screens, with 3,500 or more screens expected for the release of Avatar, there's a lot more money at stake.

Levin wouldn't discuss any contracts around next week's Ice Age release, but it's been reported that Fox backed off on the glasses issue, at least for now.

Marla Backer of Hudson Square Research said single-use glasses may be easier to deal with, but they're inconsistent with corporations' increasing focus on "being green."

While reusable glasses need to be more durable and therefore cost more, she heard from exhibitors that chose Dolby's system - which like Imax utilizes theater attendants to collect and clean glasses - that incremental costs are small as employees have "downtime" between shows and the training required is minimal.

By Andy Georgiades, The Wall Street Journal