IMAX on track to grow throughout 2009
Shares of IMAX Corp. have been rising from its year-to-date low as the company has been adding screens and is locked in to run the biggest blockbuster films of 2009.
Over the weekend, 12% of the grosses of “The Day the Earth Stood Still” came from IMAX theaters, for a per screen average of over $30,000 compared to the national average of only $8700. Nineteen of the top 20 grossing theaters were IMAX theaters with ticket prices 25% to 40% higher than the average.
Box office results similar to this one throughout the year has consistently demonstrated the strength of the IMAX brand and the fact that the public is willing to pay a premium to see movies in IMAX theaters.
While predictions for next year are rosy, IMAX will face challenges down the road. It only holds a slight technological edge in the digital projection market and any theater with stadium seating willing to double stack two 4K digital projectors and beef up its sound system could create a similar viewing experience.
Also, IMAX is facing a class action suit in Canada claiming it cooked its accounting books in 2005 by listing revenue from deals not yet finalized, but IMAX says it followed standard accounting proceedures.
Read more at Forbes.