Will 3D be the savior for IMAX?

Implications: Lots of us considered IMAX down and out in recent years as the institutional theater market (museums, etc.) began to dry up and as IMAX and others failed to provide sufficient appropriate content to the commercial theater circuits to which the Company was selling systems. Now with 3D being one of the very HOT topics in Hollywood and due to the success of two opening weekends of Beowulf in Imax 3D, the time may be right for Imax.

Analysis:  

In the 90s, Imax, faced with a dwindling market for its theater systems in what had been its core constituency, the institutional market of museums and other not for profits, began leasing its systems to commercial theater circuits. Among the first was the Loew’s Lincoln Square at what is now an AMC at Broadway and 68^th. This location, is consistently one of the top ten box office grossing locations in the US.

Unfortunately, the Company did not supply sufficient commercial content for these screens. While movies about Bears, Wolves, etc. do well in museums and science centers, they failed to attract audiences at theaters such as the one at Lincoln Square or the Edwards Spectrum here in Southern California, another very high grossing location.

The lack of content did not sit well with the exhibitors who had spent a lot of money installing expensive IMAX systems. Fortunately, IMAX came up with the DMR system to convert a 35 mm Hollywood movie to its 70 mm format.

The last couple of years have seen a growing number of Hollywood movies on IMAX screens. With the appetite in Hollywood for 3D content, Imax 3D seems like a great way to get the movies into more venues in addition to the burgeoning number of 3D screens from Dolby and current market leader Real D.

Now that AMC has made a deal with IMAX for 100 screens over the next couple of years, one must ask if Regal and Cinemark, the two commercial exhibitors that were among the first to install IMAX screens, will pump up their volume as well.

Certainly the economics have changed all around. IMAX does joint venture deals, making it easier for the circuits to sign up, and without the $40 - $50,000 film print costs, the new digital systems may be the lifesaver.

I have not seen the digital IMAX yet, but have seen the Real D and Dolby 3D systems on many occasions. I have seen around 100++ IMAX movies over the years, including many in 3D and know that it does provide a unique viewing experience. If you have not seen Beowulf in Imax 3D or digital 3D, do so and do it this week while it is still in the theaters.