Critique on Three-Dimension Television from Economical Aspect

Background

Three-Dimension Television (3D TV) is a television type with Stereoscopy Technique. Images modified by Stereoscopy Technique produce an “illusion of depth” to people, and 3D images can be seen with a pair of special glasses.

Due to the fact that the movie Avatar had a very successful box office record in 2009, 3D imaging technique was then heated up and many electronic products companies were eager to grasp a share in the market by developing this cutting-edge technology. So many 3D TV were then being pushed into the market.

Stereoscopic image of a piano, the viewing angles of the two pictures are slightly different

Nevertheless, according to the statistics on the internet [link], there was just a low purchasing rate recorded in some technology leading countries such as Japan, America and England. People in those countries do not appreciate this technique and are not passionate to own a 3D TV. This significant contrast does not create good impact on the economy. The following paragraphs will detail the reasons why this newly invented television technique cannot become popular, followed by an economic analysis.

Reason 1: 3D media is not common in the society
Because of the mentioned reason, electronic companies put a considerable amount of time and effort to invent and improve 3D television technique. Under a rapid developing progress, fully developed 3D TV had been prepared for the citizens. However, 3D media cannot keep up the pace. Media producers did not provide enough peripheral supports, such as 3D television channels, 3D movie recordings and 3D games, to this newly invented stuff. By common sense, consumers always wish the products they bought can be fully utilized. But in this case, there is no such opportunity for them. Properly they would not think that it is worth to buy this product.

Reason 2: 3D is not a major consideration for making the purchase decision
Besides a small amount of people with technology fever, most people in the society are not enthusiastic on special technologies. For this reason, we may know that 3D will not be the leading factor for people to enjoy a TV program. Instead, being a common leisure of the general public, the content of TV program would be more important than brilliant technologies. Therefore, having great 3D technology equipped cannot generate enough momentum to encourage people buy a 3D television.

Reason 3: Price is high for the general public
3D TV can be sold from around HKD$ 15000 to HKD$ 70000 in Hong Kong (Prices of Sony’s 3D TV were takes as a reference of the market price. [link]). When we compare the price of 3D TV with the income of a general Hong Kong citizen, we can easily notice that the price of 3D TV is relatively high. Many people agree that watching television is just a basic entertainment. Ordinary citizens may not be willing to pay for an item using nearly a whole month of salary. Therefore 3D television is deemed to be an unpopular product.

People watching 3D television

Economical analysis
A basic economic theory is that the market will be most efficient when it is at equilibrium, which is supply equals demand. In short, we can say that success can be reached if the equilibrium point is reached. If there is too much supply or too much unsatisfied demand in the market, the product cannot be counted as a good element for the economy. In the situation of 3D TV, its supply is extraordinary high compare with the demand.

In addition to the above points, we need to take into account the cost of Research & Develop. Given the enormous investment in Research & Development, it may be not beneficial to the company even if the market is at equilibrium because there exists a possibility that the company still cannot recover its cost (still have not breakeven) at that particular point. 3D television technique was still immature in 2009. But after the hurricane of Avatar, the electronic product companies devoted a lot to the invention and the improvement of new 3D television technique. A very significant amount of resources had been spent. But still, those companies would get a far way to break even. 3D TV actually cannot provide positive impact to the economy. 3D television can be considered as a failure at this stage.

Conclusion
Owing to the aforementioned reasons, at this stage, 3D TV cannot become popular in the society. Having just a few numbers of interested consumers thus leads to inadequate demand. In reality, 3D television cannot produce positive effect on the economy of the society. Launching 3D television technique in a hasty way in 2009 should not be considered as a good option for the economy. However, fortunately, the above mentioned bad reasons have the room to be eliminated as time passes. Maybe 3D TV can demonstrate their value when peripheral supports are ready in the consumer market in the future.

References

1. Wikipedia – 3D television Website: http://en.wikipedia.org/wiki/3D_television Retrieved on 22nd November, 2010
2. Wikipedia – Stereoscopy Website: http://en.wikipedia.org/wiki/Stereoscopy
3. Retrieve on 22nd November, 2010
4. A&T (sam的多媒體園地) – 認識「3D TV」廬山真面目 Website: http://sam52888.pixnet.net/blog/post/4629445 Retrieved on 22nd November, 2010
5. 中國經濟網 – 叫好不叫座 3D電視遭遇”寒流” Website: http://big5.ce.cn/cysc/zgjd/kx/201011/05/t20101105_20538191.shtml Retrieved on 22nd November, 2010
6. Sony Bravia Website: http://www.sonystyle.com.hk/ss/product/tv/index.jsp?lid=topmenu_icon_bravia Retrieved on 22nd November, 2010