I think IM3 is now priced in. I think Star Trek will take us to $30.
I think this news of Seth McFarlane's home IMAX theatre will take us to $35.....a new revenue stream....proabably 50%+ margins. There are a lot of rich people out there......and many of them want the best money can buy.
Wow, I never thought I'd be taken so seriously!!! $5 is a stretch right now, but if you acknowledge that a tonne of people spend money on stupid things then you could easily see 20-30 of these home theatre systems on steroids being installed a year. There are a tonne of people with no care for money.....all they need is a novelty. If you want an example, look at the top 10 fastest production cars. Most range $1-2 M and combined sell 500-1000 units a year. The issue is not the demand; trust me. "OneUpsManship" is alive and well. I bet a single trip to Saudi would net a dozen sales in a month.
My point is that this A) is a new revenue stream. B) this does wonders for the IMAX brand. C) It IS a high margin business - we know Conventional sales for $1MM are done with a ~50% margin. Do the math.
Wiki: There are approximately 95,000 people in the world worth $30MM or more, with 61,600 or 64.8% residing in the United States and Europe.
The pie is large. One can refute anything I say, but don't refute it with B.S.
You guys mocked me when I said this new home theatre revenue stream was a big deal, but here we are......LA times says that there will be 2 installs by July and 2 more are in design right now. At $2m a unit and a gross profit of around $1m a unit, these things can and will stack up. Word is that Crise, Seth and Arnie are already on the waiting list......who's next? The economics of each of these sales is no different than a theatre sale except we should not have the rediculous waits that cram up our backlog. From an article in the wsj this week...... The first two installations for the product are expected to be completed over the next six months, with half a dozen more by next year and 10 to 15 per year after 2014, says Rob Lister, IMAX's chief business-development officer. IMAX coordinates the installation with architects, contractors and interior designers........if you ask me, this could easily be a dozens a year.