Despite IMAX signing thirty-five new theaters worldwide, which doubles last year’s seventeen, their earning reports for the first three months indicate that IMAX’s earning is down nearly 3%. However, IMAX’s CEO Richard Gelfond is not worried about this lull: “The significant level of interest in our business worldwide is promising and underscores how the Imax brand has become synonymous with the ultimate way to experience blockbuster films.”
And though this year’s first quarter profits maxed out at $579,000, which is down from last year’s $2.86 million, IMAX has solidified its “position as a unique and dominant player in the global entertainment industry.” This established power has accounted for two-thirds of the global box office in 2014s first quarter: their $139 million global box office is on the rise from 2013s $128.7 million. And even though I have not been a huge fan of this expansion, it seems that IMAX is here to stay.
My problem with the company is that when they expand to smaller theaters, those branches do not have the resources to build a real IMAX screen: so they develop a smaller screen that I like to call ‘IMAX light.’ And these smaller screened theaters, at least in New York, like to charge the same ridiculous price as the theaters with real screens. Now, I know that IMAX does not set the prices for the theaters: the market dictates that. But why dilute your product, unless the company is trying to make a quick buck. Either way, IMAX does not seem to be hurting from this 3% lull, which means be prepared for further expansion in 2015.
What do you think of their expansion? Do you think that the first quarter profits will hurt them? Let us know in the comment sections below. And for all news, continue to read Film Class Junkies.