No Conversion Chips in Panasonic 3D TVs, Perry Vows

ESPN thinks that “the right way for this technology to flower is for there to be true 3D-originated content that’s delivered all the way through the system to the consumer,” Perry said. “We believe the same way. Our sets do not include any 2D-to-3D conversion technology. We want to make sure that the consumer’s experience of 3D is stunning. We believe we've done it the right way. That’s our position.” A day earlier, Samsung disclosed that at least some of its 14 3D TVs will have conversion chips built in (CED March 10 p1). ESPN, which has threatened to “soften” its 3D commitment if makers start flooding the market with TVs bearing conversion chips (CED March 3 p1), has said it won’t comment on individual sets’ announcements, but that all it strives for is the best 3D viewing experience for consumers.

Best Buy has exerted “subtle” pressure on its vendors to agree on a uniform standard for interoperable 3D glasses across multiple brands of TVs, President Mike Vitelli told us at the briefing. In Q-and-A, Vitelli said Best Buy wants to try to convince all consumers to “use the same glasses” to view 3D regardless of the brand of TV, Vitelli said. The remark drew laughter from reporters, which seemed to puzzle Vitelli. “And while that’s funny, it’s not trivial, and I am serious,” he said.

Best Buy’s “intent” is to push for a uniform 3D glasses standard as strongly as we can,” because the lack of interoperable glasses “is a challenge not only on the sales floor, but in the customer experience as well,” Vitelli said. “If you and I accidentally buy a different brand, and you come over to watch the game, and you bring your glasses, we're going to be in trouble. So as this moves forward, solving that issue is actually a bigger issue than the initial demonstration in the store.” Panasonic also favors a multi-brand standard on 3D glasses, but won’t “compromise” on the viewing experience in negotiating a standard with other companies, Perry said.

Panasonic won’t authorize online sales of 3D TVs, at least at the start, Perry said. “Because the consumer may not have learned everything they need to know about 3D … we want to make sure that they absolutely know everything that they need to know and they are satisfied with their purchase,” Perry said. “So our initial strategy is no online sales. We do want online education from all of our retail partners and we do want to make sure that the consumer can learn everything that they possibly can. But we want them in the store for a demo. We have not set a date when we will transition to allowing online sales. Frankly speaking, we will make that decision when we reach a point where we believe that consumers can have enough information to make those purchase decisions and be satisfied with it. At the end of the day, at Panasonic, we serve the consumer, and they have to be satisfied.” The online sales ban has Best Buy’s support, Vitelli said. “In this case, we actually applaud what Panasonic is doing because we believe as they do that you have to experience this,” Vitelli said. “While online experiences are dramatically improving, there’s nothing like seeing this in the environment you're going to have it in in your home."

Consumer adoption of home 3D will happen “much faster” than it did for HD, Perry said. That’s “because all the stars are in alignment, we don’t have the debates that we used to have for HD, so 3D is coming, it’s coming fast and it’s here today,” Perry said. Best Buy wants to be sure “it’s 100 percent clear to every customer” that every Panasonic 3D TV is also “a fabulous HDTV all the time,” Vitelli said. “So a person who’s looking for a fantastic experience that’s future-ready for whenever they're ready to get into 3D, it’s a great choice. We believe, like Bob, that that’s going to accelerate the adoption on the high end."

Best Buy has no “specific expectation” of how many 3D TVs it will sell in the first year, Vitelli said. “We're going to bring in the products that we think make the most sense. There'll be an increasing percentage of the business particularly at the high end where we'll present the 3D experience to people.” But with “the number of products that are coming to market, as the content partners bring more things into the market, it’s an exciting evolution in what the home theater experience is all about,” Vitelli said. Best Buy thinks it will have “an exciting opportunity as consumers come out to see this wonderful technology,” he said.

Other disclosures: (1) Ice Age: Dawn of the Dinosaurs will be the debut Blu-ray 3D title for Fox Home Entertainment, said Mary Daily, the studio’s executive vice president, marketing. The title will be bundled with Panasonic 3D TVs and will “street” sometime in April, she said. Fox is on the brink of an Blu-ray 3D announcement for Avatar, Daily said. (2) A New York couple, Brad and Ashley Katsuyama, plunked down just under $3,200 to buy the Panasonic 3D home theater system at Best Buy just as the briefing ended. Sale of the first system was no “publicity stunt,” Perry protested in Q-and-A. Best Buy found the Katsuyamas from a customer lists, and Panasonic has nothing to do with their selection, he said. The event was to trumpet arrival of Panasonic 3D TVs to “hundreds” of Best Buy stores throughout the country, Perry said. Vitelli said Best Buy runs about 400 Magnolia stores-within-a-store, and those would be the locations that sell home 3D products before the gear gets relocated to the main selling floors of all stores chainwide.