AMC decided to go the Cinemark route with its own XD-style oversize format. It looks like the lackluster performance of XD relative to IMAX was not enough to convince them to expand the IMAX relationship. Bummer. I guess greed has them thinking they can build their brand enough to squeeze out IMAX in the long run.
The reaction is much-ado-about-nothing. IMAX has already set an awesome entertainment experience for years, so anyone that ATTEMPTS to steal their market share will need to match that awesome standard experience, minimum, period. Think about how history is littered with feeble, less-than-innovative, copy-cat companies who've attempted and failed to seriously challenge a highly-visible, market-leading company that has already established a very high standard for that market. (NOTE: I'm not talking about an evolving standard here.) According to independent reviews, AMC's large format experience doesn't achieve the awesome IMAX standard, so IMAX won't really be the loser here. AMC will grab market share from "regular" theaters that offer an ordinary movie experience for ordinary customers, because they offer a better (albeit not totally awesome) movie experience as compared to the other neighborhood theaters. Do a web search for reviews about the new experience that AMC offers. You'll see comments about how poorly it compares to IMAX. But that's not a fair comparison. IMAX offers an experience that commands continued growth through a growing pool of discriminating customers, and AMC (and others who chase larger formats) will be successful against their less-aggressive competitors. And the technology supplier investors will profit handsomely....
It is about time IMAX mgmt (read Gelfond) came out clean on JV installations & Exhibitor demand...he has been deliberately vague in the recent interviews mentioning how international exhibitors are kicking tires etc after AVATAR...not one concrete deal yet to confirm the so called demand...
I would not have been this critical if i had not seen AMC going cinemark route..
Analysts are going to ask the above questions during the earnings cc anyway and who knows what answers the mgmt has...parroting about Avatar success and selling stock is not a way to assure stockholders about demand for Imax installations...with this mgmt "Always trust but verify"
Why is Eric wold's frequent contention that exhibitors are moving away from imax is going unanswered by imax mgmt??? Not a vague answer but real proof of demand.
The stock is atttempting to come back but we still need answers...
Here is a link to the AMC announcement:
I agree. It is time for a statment from IMAX. I am sure this will be a major topic at the earnings conf call but it would be good if they would make a comment earlier to defuse the issue. The problem they have is that success breeds competition. This is just the way business works. They need to describe what they are doing to hold off the competion.
If you have not read the actual announcement which AMC made the link is above. Note the screen is only 20% larger, has 2 million pixels. The screen size does not seem that much larger. Not sure how the number of pixels compares. Does anyone know.
Learn to think outside the box.
IMAX is going to be acquired by an entity which prefers to build fully owned IMAX theaters.
No more seeking business from theater chains.
AMC , REGAL, CINEMARK everyone has to find an alternative.
IMAX will no longer be available to theater chains in future after the company is acquired.
My opinions only. Proofs are not avalable and will not be offered.
Take it or leave it.
<<AMC decided to go the Cinemark route with its own XD-style oversize format. It looks like the lackluster performance of XD relative to IMAX was not enough to convince them to expand the IMAX relationship.>>
Where does it say in the story that they are doing an enhanced cinema INSTEAD of Imax and not ALONG with Imax. Read what is on the page.
Patrons Love IMAX and they can experiment as much as they want IMAX will grow from their own organic profits with or without them. Wold is so shortsighted again. It sure sounds like he is a desperate short.