Shares RealD Inc., the maker of projection systems and glasses for 3-D movies, fell after a report that Sony Corp. plans to stop paying for 3-D glasses when it releases films.
The Hollywood Reporter said Tuesday that Sony had notified theater owners it will no longer pay for 3-D glasses as of May 1. For large studio movies, the cost for 3-D glasses can range from $5 million to $10 million, the Hollywood Reporter said.
The story appeared Tuesday afternoon after the stock market closed. By Wednesday morning, the National Association of Theater Owners issued a statement calling for Sony to rethink its decision because moviegoers or exhibitors will now have to pay for the glasses.
In a separate statement, Regal Entertainment, one of the largest chains of movie theaters, warned it might scale back the number of its screen showing 3-D movies.
Shares of Beverly Hills-based RealD closed down $1.80, or 14.7 percent, to $10.42 on the New York Stock Exchange.
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