Will Porn Fuel Sony and Panasonic 3D TV Sales?


Sony SNE logoWhen you think 3D TV, the possibilities are limitless. That game-winning touchdown pass spiraling out of your flat screen, alien invaders flying ships through the screen ... and yes, even naked women strutting their stuff in your living room.

It's this latter and controversial content that is fueling the 3D business in Japan right now, where a pair of porn stars are leading the charge in developing three-dimensional entertainment that is compatible with Sony (SNE) and Panasonic (PC) televisions.

Before you scoff, keep in mind that adult videos in Japan account for 30% of total video sales in the entire nation, according comments by Takashi Kadokura in a recent Bloomberg news article. That's a whopping $1.2 billion in American dollars, so the cash is certainly there. And since the technology is there for Sony and Panasonic but the content isn't, these 3D television manufacturers are not exactly expressing moral outrage over the fact that the porn industry is going to take the first steps for this new medium.

Though in the West there may be some highbrows and moralists who express shock at the fact that porn is leading the 3D revolution, let's not forget that the first Internet start-ups that became profitable were actually pornographic in nature. In some strange way, XXX websites can take credit for proving the commercial viability of the new medium. Just because porn is a seedy business to some doesn't mean that it isn't about making money -- even Playboy and Nintendo can share ideas when it comes to brand evolution.

Mika Kayama and Yuma Asami, the top (ahem) actresses of adult-movie maker S1 No.1Style, are set to debut in 3D this month with Kayama's video set for release on June 7 and Asami's video out in 3D format on June 19. It's not exactly a coincidence that these videos are making a splash at the same time that Sony is launching its new 3D Bravia models. Panasonic is already selling 3D television sets in the U.S. and in Japan. Sharp Corp. (SHCAY) and Mitsubishi Electric Corp. (MIELY) have said they plan to sell similar products.

It remains to be seen though if seedy early adopters are really necessary to being the 3D revolution. Worldwide shipments of 3D TVs are expected to be 4.2 million units this year even without any consistent mainstream programming or cable channels. Some experts estimate next year's total as high as 13 million based on these trends -- almost 10% of the LCD flat screen market when you look at the projection of 170 million of the high-tech sets that will be sold this year.

There are already some 3D video game technology plans in the works, and that could create even more demand for the sets. And if a big television event embraces the 3D technology on a larger scale -- as a 3D broadcast of the Final Four last March attempted to -- it could create a firestorm of demand.

However, this is all speculation. Due to the lack of offerings, Samsung is currently the leader of the pack, having sold 90% of all 3D TV sets and on pace to move just 600,000 in the first six months of the year. If the pace doesn't pick up, sales could top out at only 1 million or 2 million in all of 2010.

Whatever the future will be for 3D television, you can bet Sony, Panasonic and a host of industry insiders will be watching the release of Japanese porn titles this month -- whether they want to admit it or not.

As of this writing, Jeff Reeves did not own a position in any of the companies mentioned here.

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