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2010 ‘Year of Confusion’

Sensio Launching Solutions, Content at CES For Next-Generation 3D TVs

Sensio will launch two 3D technologies and a 3D content solution at CES this week, Richard LaBerge, the chief marketing officer, told Consumer Electronics Daily, as the company takes on obstacles to widespread adoption of 3D TV. Describing 2010 as “the year for confusion” in 3D, LaBerge said consumers were perplexed and frustrated by the setup required for 3D with set-top boxes and Blu-ray players, along with compatibility, cost and comfort issues of active-shutter glasses. Lack of programming was the other barrier to adoption, he said, noting that Sony subsidized ESPN’s 3D channel, which offered limited content, and Panasonic’s sponsored with Discovery a channel that has yet to roll out. LaBerge also cited TV makers’ exclusive bundling deals for blockbuster titles including Avatar 3D and Alice in Wonderland. “Consumers wanted Avatar,” he said, “but it’s a bit expensive to buy a 3D movie, when you have to buy a TV to get it."

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On the programming side, Sensio is working with Roxio Now to provide “high-fidelity Sensio 3D,” the company’s 3D content library, which will be available to consumers as pay-per-view titles in Q2, LaBerge said. Sensio is also talking to Comcast and DirecTV, he said. Content will include documentaries, family-oriented programming, live events and games and feature Avatar and a Shaun White snowboarding title from UbiSoft. He wouldn’t specify the amount of content planned for launch beyond saying “over 100 titles” could be available. “Consumers need variety and volume” in 3D programming, LaBerge said. Prices for content will be “close to what consumers are used to paying now,” he said. “We should charge a premium because it’s value-added."

Sensio has been involved in 45 live cinema 3D broadcasts worldwide, including those of the NBA All-Star Game and World Cup soccer, LaBerge said. The events were broadcast to cinemas “because they have paying customers who will pay $20 to see it,” he said. The revenue covers part of the production costs for additional content, he said. World Cup fever fueled the expansion of Sensio 3D theaters, which grew to 712 from 100 last year, LaBerge said. “Now we're getting to the break-even point where we can sustain live events and support production,” he said. The costs of reformatting from cinema grade for streaming to 3D TVs are “minimal,” LaBerge said. Bringing the bit rate down for the home market is “not a major cost but a normal transmission cost,” he said.

Linear 3D programming “can’t be sustained” around the clock as a way to satisfy viewers’ expectations, LaBerge said. He said consumers will pay for 3D on demand but won’t pay for linear 3D content, because there’s too little to justify buying a subscription. Subsidies by TV makers can’t continue long term, he said. “You need a business model where the consumer pays for something.” Over-the-top technology delivers “visually lossless” 3D images “almost as good as Blu-ray,” LaBerge said. Vizio will demonstrate the technology at CES, he said.

On the technology side, Sensio is announcing advances in glasses and 3D-2D switching to improve the user experience, which LaBerge described as “not there yet.” He said consumers are confused by the process of wiring Blu-ray players and satellite receivers to TVs. DirecTV users, he said, have to upgrade to a box that’s HDMI 1.4-compatible “or the 3D signal won’t go through.” They have to do a “hard switch” to change the signal from 2D to 3D, “and when you do, the 2D menu looks weird,” LaBerge said. “It’s not user friendly.” The company will launch an automatic switching technology at CES that’s said to simplify the process. Consumers will be able to view converted 3D-2D programming, he said, for viewing “a few clips” without having to don glasses.

Also at CES, Sensio will officially unveil polarization technology that will appear in TVs coming out later in the year. Sensio technology is inside Roxio TVs that use polarized glasses. “Shutter glasses will fade out,” LaBerge predicted, because of cost, discomfort and incompatibility. “If you want to watch a game and you have a TV with shutter glasses costing $129 a pair, are you going to buy five sets of glasses at $129 so your friends can watch?” he asked. This year manufacturers will bring out mid- to lower-end polarized 3D TVs in volume, he said, reducing manufacturing costs closer to those of 3D TVs that use active-shutter glasses. LaBerge expects “a lot” of polarized 3D TVs to be shown this week, and the company will announce additional deals with 3D TV makers after CES, he said.