Despite only selling "a few" of its $2 million IMAX Private Theatres to date, CEO Richard Gelfond says the experience has provided an entry point into the home theater market. IMAX now wants to find the right partners for a lower-cost solution.
IMAX recently bought a stake in Prima (Prima Cinema's same-day-as-theaters movie player) in return for both a Chinese distribution exclusive as well as a technology deal. IMAX use the know-how from the Prima Cinema Player in its Private Theatre systems allowing downloadable, IMAX-quality theatrical releases at home.
He told investors, “In parallel, we’ve been putting together the pieces to create an integrated, end-to-end home theater solution at a lower price point market that would include hardware, software and content. To this end, we are in the midst of identifying the right partners for such an endeavor. Rest assured that cash flow growth is our priority, so if we do anything, it will be done in a measured way that doesn’t risk significant capital.”
Regarding the IMAX Private Theatre initiative, Gelfond adds, “Our goal is to spend efficiently in areas that can produce long-term growth and cash flow for the company. We believe in our business model and expect expanding margins and cash flow over the long term. We are spending small amounts of cash to explore potential new business ideas that can supplement the growth in our core business over time.”
There are currently 785 total IMAX theaters worldwide. IMAX had Q3 revenues of $51.7 million.
The company was bolstered by the release of “Gravity,” the George Clooney/Sandra Bullock hit space movie. According to Gelfond, IMAX theaters have accounted for 22% percent of the total box office gross for the film on less than 4 percent of the screens.
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