IMAX IMAX recently announced that it has partnered with an independent theater owner, Lochmann Filmtheaterbetriebe in Germany. Per the deal, Lochmann Filmtheaterbetriebe will bring IMAX’s largest screen in the world to a multiplex in Leonberg, Germany.
The screen, which is expected to be operational by 2020, is anticipated to be 38 meters wide and 22 meters high, per The Hollywood Reporter. Additionally, the screen will feature IMAX’s laser technology.
Notably, IMAX partnered with an independent theater owner in Germany for the first time, per screen daily. Following the deal, IMAX now has 10 theaters open/to be opened in Germany.
IMAX Corporation Revenue (TTM)
IMAX Corporation Revenue (TTM) | IMAX Corporation Quote
Germany Presents Growth Opportunities
Germany is one of the key markets for IMAX. Its box office in the country increased 30% year over year in 2018 and the number of commercial theaters increased to six from two in 2017.
Additionally, the company’s box office in Germany surged nearly 100% year over year from January to March 2019. Notably, Disney’s DIS Captain Marvel was the highest grossing IMAX movie in the country in the first weekend. The movie collected about $250,000 from seven locations. Moreover, Disney’s upcoming movie Avengers: Endgame is expected to further boost the company’s box-office results.
The rise in IMAX theaters in Germany has been likely due to increase in the consumption of premium movies among European audience. IMAX CEO, Richard L. Gelfond stated that the company will continue to provide such premium experiences in the country.
Notably, international markets have become a major growth driver for IMAX. The company signed agreements for 12 new theaters and two upgrades in fourth-quarter 2018 across markets such as China, Germany, Scandinavia, Japan, India and France.
IMAX Technology: Key Differentiator
IMAX provides differentiated experiences with its latest laser technology. This is why it has attracted theater owners and has expanded relationships with them.
Earlier, IMAX renewed its partnership with Cinemark Holdings CNK to bring two new IMAX laser theaters. Additionally, other exhibitors like Cineworld, AMC Networks AMCX and Pathé have been increasingly adopting the company’s laser technology.
Notably, laser technology provides high-quality images with sharper resolution and depth and allows filmmakers to showcase a variety of colors, thereby ensuring a completely immersive experience for the audience.
Moreover, IMAX is increasingly trying to sell its IMAX DNA technology, which generally uses IMAX cameras in the film-making process. Notably, top filmmakers like Christopher Nolan, Anthony Russo and Rian Johnson used IMAX cameras in their films and Avengers: Endgame was fully filmed with IMAX cameras.
Use of IMAX cameras among top Hollywood talent may help IMAX attract more users and boost footprint levels. This may aid the Zacks Rank #3 (Hold) stock’s top line.
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