Leading giant screen company Imax has signed a revenue sharing deal with US regional operator Southern Theatres for installation of four digital Imax screens by July 2011. The deal marks the first time Imax has pacted with a regional US operator rather than a major domestic (US) circuit under the joint venture scheme. Deal closely follows signature of Imax's largest revenue sharing deal outside of North America with key Chinese exhibitor Wanda Cinema Line Corporation for 75 screens. The partnership with Wanda is particularly significant as it is both Imax's single largest international deal but also its first full revenue sharing agreement in China itself.
Development indicates that Imax is widening its reach for new exhibition partners, both internationally but also outside of major circuit giants and key Imax customers such as Regal, AMC and Odeon UCI. Following the two deals, Imax now has joint venture agreements set up with 16 exhibition partners, up from 14 exhibition partners at end 2010. At end 2010, 85 per cent of Imax's joint venture exhibition partners were based in North America down from a 90 per cent share in 2009 and a clear indication that the company is increasingly targeting international expansion, through which revenue sharing is an attractive, more risk adverse and less capitally-intensive option for exhibitors. Imax has signed a total of 101 new theatre deals already in Q1 2011, the bulk of which were accounted for by the Wanda deal.
China is Imax's largest and fastest growing international market. Imax itself has commitments to deploy a further 177 screens in China by 2014 and China now accounts for a significant proportion of Imax systems that were in backlog or awaiting installation, reported to be a total of 283 at end Q1 2011. However, only 26 per cent of systems in backlog at end 2010 were for joint venture partners.
Imax now plans to fulfill up to 125 systems (up from 90 previously and not including 25 upgrades from film to digital) in the calendar year 2011. The planned rate has increased following the deal with Wanda, for which it plans to install 25 screens in 2011 and the remainder by 2014. In total, Imax installed 43 screens in Q1 2011 up from just 19 screens in the same period in 2010. Decision to partner directly with Wanda followed 10 previous Imax screen installations with the same exhibitor.
