We have just completed the briefing with a very large publishing house that is preparing to launch a series of 3D books onto the market. You’ll be able to hear more about those details during one of upcoming trade conferences (hint: it takes place in February in Spain), but several things really intrigued us and there is no doubt in our mind that 3D will expand significantly in 2012.

Back in June 2011, Nintendo made an whoopsie and disclosed Netflix’s 3D streaming plans, which came true following statements made on January 25, 2012 by Reed Hastings, CEO of Netflix. Netflix will offer 3D movies and events for their subscribers.

Remember, Netflix is not the only streaming video service that is tapping into the market’s demand for 3D content – Vudu used CES 2012 press conference to announce that Vudu is the first company to launch 3D movie streaming.  The buck doesn’t stop there – according to data from Nielsen, 3D is gaining adoption even with the current state of content – approximately 6% of consumers own a 3D capable TV and 19% plan to do so.

But while 3D books and 3D movie streaming services are all nice and dandy, the truth is that just like internet images and internet video, it was the porn industry, i.e. the adult entertainment industry which drives the adoption of technology. Bear in mind that first Chinese 3D porn movie called "3D Sex and Zen: Extreme Fantasy" earned more than Avatar 3D in its opening weekend in Hong Kong, and the adult entertainment houses are moving forward with pushing for more and more adult content? in 3D.

Following the AVN Adult Entertainment Expo 2012, we managed to talk with senior executives from two of the largest adult entertainment movie houses in North America and Europe. We were explicitly told that "3D is the future of adult entertainment" and that the adoption of 3D will be carried through 3D smartphones and tablets, such as the LG Optimus 3D and the upcoming Apple iPad 3D.

In order to get a Hollywood meets Silicon Valley answer, we asked Roy Taylor, former Vice President of NVIDIA. Roy was the driving force behind NVIDIA’s own The Way Its Meant To Be Played program for content creators and created much of the image NVIDIA enjoys among gamers today. Majority of early Tegra 2 design wins also came from his work as the head of Telco relations. However, Roy grew tired of silicon and left Silicon Valley for Hollywood (insert your silicon comment here) and is now serving as Executive Vice President and General Manager of MasterImage 3D, one of most progressive 3D companies out there.

Roy said "3D is still in its infancy. In Hugo, Martin Scorsese has successfully shown how the proper use of the medium can dramatically enhance the movie experience. For example volumetric effects such as snow or dust can be used to increase our sense of immersion into the story."

"In addition improvements in filming such as the use of higher frame rates and a better understanding of the use of depth queues are rapidly being used to make really wonderful new 3D experiences."

Roy added: "the opening weekend of Underworld: Awakening saw 74% of the audience view the film in 3D.  Steven Spielberg’s foray into 3D has seen The Adventures of Tin Tin take more than $350M worldwide. It’s only natural that Hollywood and Bollywood will want to expand this success outside of the theater. 3D enabled smartphones and tablets will be a natural extension for consumers."

We’ll have a separate story detailing the MasterImage 3D plan to expand from their 4000 movie screens in over 70 countries to mobile devices such as tablets and smartphones. But for now, past 48 hours gave us a lot of food for thought. Truth to be told, we all knew 3D is going to be big but just how big… that remains to be seen.