AUGUST 4, 2009, 3:05 P.M. ET
Imax Gains Film-Release Flexibility From Digital >IMAX
By Andy Georgiades
Of DOW JONES NEWSWIRES
TORONTO (DOW JONES)--A year into its era of digital projection, Imax Corp. (IMAX) is making the most of the increased flexibility it has in releasing Hollywood hits.
There was a time an Imax film needed a release window of at least 6-8 weeks to make a decent return from its small large-format network. But the advent of digital has allowed it to show more films in runs half as long.
It recently announced two more films for 2009: "Cloudy with a Chance of Meatballs" for Sept. 18, and "Where the Wild Things Are" on Oct. 16, giving it a three-week run before "A Christmas Carol" on Nov. 6.
Eric Wold, analyst at Merriman Curhan Ford, estimates the break-even point for Imax is about $10 million, assuming the film-conversion cost is $1.25 million and Imax collects 12.5%.
He said the lower costs associated with digital, coupled with a larger theater network, allow for three-to-four-week runs, or less. It's all about picking the right mix of content to get the most out of each movie, he said, adding that some big movies can break even for Imax in the first weekend. Most Hollywood films gross more than half their total in the first two weeks.
A year ago, it would have been impossible for Imax to program "Star Trek," which opened May 8, because the company had agreed to play "Night at the Smithsonian" May 22. With digital, it was able to squeeze in a showing of "Star Trek" for that two-week period.
It proved to be a smart move. The film grossed nearly $162 million in its first 14 days in the U.S. and Canada, or about 63% of its total. The Imax domestic take was $22.5 million, plus $4.1 million overseas.
Next year presents a similar opportunity with "Iron Man 2," which opens May 7. Imax has already committed to show the next "Shrek" film on May 21, but as the "Star Trek" experience proved, the first two weeks are the most important to have.
"Iron Man 2" is being released by Viacom Inc.'s (VIA) Paramount Pictures unit, which also released "Star Trek." Imax declined to comment on "Iron Man 2"; Paramount couldn't immediately be reached for comment.
Company Web Site:
http://www.imax.com
However it won't be in 3D because it costs much and it would force them to shoot digitaly while his cinematographer rather shoots on film.
