The Scenes of IMAX
Once upon a time, there was a theatre known as IMAX. Quite frankly, they were the special, enormous screens with the incredible audio… and people would gather around to see them. And while they tended to impress many, their content was more educational than entertaining… causing some to wonder if the high ticket prices were worth the experience.
The executives at IMAX knew they had a great product… but for many years, they couldn’t get the major film producers to throw up their shows on these screens… until they discovered the beauty of 3D. Within only a few short years, IMAX became the preferred distributor of these films due to their technology, massive square screens, and distribution abilities internationally.
IMAX Stock Reaps Free Movie Tickets
IMAX is up approximately 35% year to date… so, if you had invested $1000 at the beginning of the year, you’d have $350 to spend on movies, popcorn, and candy at your local IMAX theatre. For a company that use to have to pay studios to show their films, these same studios now beg IMAX to run their films… both 2D and 3D. Disney, Warner Brothers and other major studios are now signing multi-year deals to ensure they have venues for their upcoming 3D blockbusters. In April 2010, Warner Brothers agreed to release up to 20 titles in IMAX between 2010 and 2013… further propelling IMAX’s revenue stream. But the real growth story is not in North America, but International.
Take China for example… the growth engine of several companies such as YUM, SBUX, and others. IMAX announced a 75 theatre agreement in China, the largest international deal in IMAX’s history. In 2011, IMAX opened 88 theatres in China, up 40 from 2010. But the story is much larger than China alone… with IMAX tripling their theatres to 630 worldwide in the past 5 years. And the executives expect Latin America to blossom to over 150 theatres in the upcoming years.
Unlike the educational days of before, IMAX now presents the hottest movies. In fact, the latest “Mission Impossible” movie played solely on IMAX screens for the first 5 days of its release. Couple this with releases of “The Hunger Games” and upcoming releases of ”The Amazing Spiderman,” “The Dark Knight Rises,” and “The Hobbit” IMAX is positioned to see spectacular revenues in 2012. Studios that once had to be wooed, now pay royalties to IMAX.
Certainly 3D has impacted recent movie goers… but did you know IMAX has technology to convert films shot in 2D into 3D such as “Spiderman Returns” and “Harry Potter & the Order of the Phoenix.” With recent patten purchases from the bankrupt Kodak, IMAX continues to transform many of their older film model education museums into digital theatres that run for only a fraction of the cost.
The IMAX story is impressive… especially in the most recent quarters. So, if you’re considering going to the movies, and begrudging the ticket prices, you may want to consider buying the stock. Your investment in the IMAX stock might just enable you to get free IMAX tickets with the profits alone.