Rob Kurrus Talks About Why Dolby 3D Was a Clear-cut Business Decision

"Financially, the Dolby model makes a whole lot of sense. It also makes sense environmentally. It’s just better business."

Exhibitors are discovering that, of the major available 3D systems, the Dolby® 3D system is the better business model, providing the maximum return on investment. While some exhibitors initially have concerns about operational issues and shrinkage, actual examples from theatres prove otherwise.

One exhibitor who has both RealD and Dolby systems in the same complex is Rob Kurrus of the all-digital, ten-screen Premiere Theaters in Melbourne, Florida. He’s run all the numbers and has found that the Dolby 3D solution definitely makes better business sense, in addition to providing a superior customer experience.

"This is 100 percent a business decision," explains Rob. "A lot of people haven’t really done the math. They are looking at what is easiest, instead of what is best financially. We’ve analyzed our return on investment in great detail. We compared the results, show by show; figured in our capital and operational expenses, labor costs, glasses handling, studio charges, everything. Choosing Dolby works out mathematically. Entry-level costs for the two 3D systems are about the same. But after that, you’re ahead with Dolby."

The reusable glasses are an essential element of the Dolby system. A onetime investment, the durable glasses typically can be reused at least 500 times, and they are easy to handle and clean. Dolby supplies instructional guidelines, including a wall chart for theatre staff and a five-minute training video. Dolby also recommends specific cleaning equipment.

At Premiere Theaters, handling the glasses fits easily into the day-to-day operation. Rob elaborates: "One misconception, talking to people about the Dolby system, is that it takes a lot of effort to manage the glasses. In fact, we only need one person at the auditorium to hand out and collect them. And cleaning them is far simpler than we ever imagined—a complete non-event. Just follow the training video. We wash the glasses each day, using staff during downtime."

The Dolby glasses offer another advantage, according to Rob. "There’s no cleanup with Dolby 3D. With RealD, there are glasses and plastic bags scattered throughout the auditorium after every show. The used glasses need to be collected, stored, and sent back. Dolby glasses don’t have to be returned, and that’s less work right there.

"With a little effort on our part, shrinkage has been next to nothing. And in the ten months we’ve had Dolby 3D, we’ve only had one incident where the person wanted to keep the glasses."

As with any business, accurate planning is important. Dolby makes that easier and more predictable with a onetime investment for glasses and the filter wheel that installs in the digital projector. As Rob states, "With Dolby you own your equipment and control your own destiny. You know where you stand. Plus there is no guarantee, going forward, that the studios will continue to subsidize the disposable glasses."

While the business case alone for Dolby 3D is persuasive, the Dolby 3D system also offers technical advantages. In Rob Kurrus’s experience, "Dolby has better color and, most important, we don’t have to install a silver screen. I can’t bear to play back a 2D movie on a silver screen." Because the Dolby system uses a standard white screen, the exhibitor has the ability to show either 3D or 2D titles to maximize flexibility for any given day.

"Our box-office revenue for 3D movies is three-to-one over 2D titles. Just like digital sound and stadium seating—we put one in, and then we realize we need one in every auditorium. If people don’t add 3D screens, they are going to miss out on a lot of revenue going forward. I’m going to put 3D on every screen."

"Financially, the Dolby model makes a whole lot of sense. It also makes a whole lot of sense environmentally. It’s just better business."