Dreamworks CTO on 3-D Technology

" It -- of animation 3-D movies growing in popularity but also in complexity. How its technology being used in these films today joining us now and if Fox Business. Someone who works on animated films firsthand Edward Lehner chief technology officer for DreamWorks Animation he's in Los Angeles. Ed how quickly is the technology changing because I frankly can't wait for how to train your dragon."

" Good morning good morning day and the you know what technology is such a critical neighbor enabler to what we do in our business them they're such day. Into a link between bringing great technology. In putting that in the hands of our filmmaker probably like. No other business. That essentially between. The creative enabling. Expressed sadness of our animators and seeing that translate on screen direct on street value. Is an essential part of our business."

" southern not elicit I know the Christmas carols number one these movies are coming out the very hotly anticipated. But what about you know the fifties the golden era of three -- they called it it it was it was very hot that it kind of went away. I know it's so expensive to make the investments how we how do we make sure that it's not going to be short lived fad like it was in the fifties."

" Well I think -- a lot that's changed in the in the tool creation an awful an exhibition to make. Three -- a very different than than your father's three -- shall we say. You know in the past 3-D was really used as a almost as it as an after thought as the post process. Today it's very different were enabled. We're taking technology. We're building new kinds of tools were putting those -- in the hands of the animators. In those animators are basically using 3-D as a storytelling tool much in the same way they use. Camera out or music or special effects due to tell better stories. And you think that that -- say is I -- pet no go ahead adventure now. All right if they the other the other critical part of this of -- in what's happening exhibition. Digital projection and theater has completely change what's possible in the theater. And now it's no longer about trying to do 3-D by synchronize an old fashioned projectors which you can do it. Precision with precision digital and that the 3-D experience in the theater. Is radically changed from when it's been in the past."

" And Ed wolf what wolf some met this among moviegoers. Will they also 3-D televisions sets I gotta look. At the one that's coming out from Panasonic sometime. Next right a year and will that be a critical step in what you do."

" Well I I think there's a couple things happening in the market being led in theatrical right now with what we've seen that theater. But there's no doubt that this is coming you know in a big way too -- to the living room. You know first and foremost we're creative enterprise. You know creating great content drive consumer value and now we're very focused on that. Using 3-D as a storytelling tool to tell more compelling stories to. Literally reach out and bring the audience in -- storytelling rather than in the old days where it's happening fly out of the audience -- those days are really over this is about creating real. Valuable. Connections with our characters I and compelling stories and using 3-D as a as a way to do that. I can also say if you look towards us CES of course the big -- Consumer Electronics Show in January. Others no doubt that treaty will be the raging there we're seeing every single manufacturer of large -- that. Get incredibly excited about three B and quite frankly we've seen some of our content on these sets in it is. It is super compelling. We're also seeing the market shift to. Live events and sporting and broadcast and other things and so you know our our prediction here that 3-D is. Are really going to change the way consumers demand and in constant contact."

" It is also good for your bottom line and how much more does it calls to make a 380. Animated film versus the traditional one. And can you basically get more the box office for the ticket prices here in New Yorker 25% more for three days."

" Right well you know we're in the very early days of this but then again we we've met a very big bet on this end and the results so far have been very promising. We invest between ten and fifteen million dollars more on top of 130 million dollar budget to make a single animated film. By the way -- take hundreds of people people many years -- 235 years to make a single film. We've added that that ten to fifteen million dollars on top of that. And we believe that this is going to be a valuable investment to listen and you know early results here last year -- released monsters versus aliens with with our first. Natively -- 3-D film. That had showed tremendous success in the marketplace particularly if you look at the box office delta between those that had -- And those that didn't I think more fully trust the exit polls were very clearly showing us that. Consumers want greedy -- willful they had higher margins. And for us that that that ticket premium is a is it is immaterial value for the consumer and one which you know far are for a film out with a test for us. And we just remained committed to this as a as a value yeah consumer Plano from any value to our shareholder."

" Ed cook very quickly are there multiple technologies that are at at play right now like VHS beta type thing where one or another might -- that there is he tells what you think it will be it will we have the I think they're called audio stereo stop it or we can watch it. Without the glasses right."

" Right while the exciting part with technology is that moves very quickly if you both know. You know right now there's there's a lot of great technologies for us you know making sure that the premium experience not. And not something that robs the consumer of the full creative side integrity of our films. You know really that it's not really a format war it's it's more of just finding the market place a little bit. You know glasses 3-D is going to be the reality for the next couple years. Really that the the tradeoff here is whether or not those -- that have active electronics in them. Or whether or not the path of polarize such as -- with Houston theater today. And again I think you're going to see both technologies at CES this year I think there's a little bit of maturity in the market in terms of these technologies converging but one thing is clear that you know quality 3-D. Shown on a premium on display is is something consumers definitely going to want though a lot of."

" Ed thanks for -- and there -- Leonard chief technology officer for DreamWorks Animation."