Imax movie theatres are ready for the digital future

Canadian movie theatre company Imax found an innovative way to bounce back from lost revenues, caused by the emergence of both legal and illegal online competitors. Imax offers a VIP cinema experience for the rich and famous and hits the jackpot.

At a time when the entertainment sector eyes the digital future with dread, as free footage is available in abundance online, Imax not only pulls consumers away from their laptop to go to the movies, but also gets them to pay a premium. (…)

Imax had a very good recession, like all companies in the movie industry. But Richard Gelfond, the company’s chief executive, was eager to discuss the company’s turnaround, during the World Economic Forum in Davos last week.

While other media companies are shaken from the effects of piracy, Imax benefits from the fact that it offers an experience that is difficult to replicate outside a specially equipped theater. Their screens are big — typically 22 meters wide by 16 meters high, or about 72 feet by 52 feet, though some are much larger. Resolution is higher than that of conventional movies. Because Imax offers a unique theatre experience that cannot be set up at home, people are willing to come to the cinema again, despite the availability of free downloads online. Even better: people are willing to pay extra for it. The average Imax ticket price in the United States last year was about $13, Mr. Gelfond said, about $5 more than the overall average cinema price.

The company is able to offer this new and glamourous product because they have been extremely innovative in the last few years. Through a technological leap they have upgraded their theatres in a way that made them financially viable. Moviegoers in Moscow can go to a V.I.P. cinema that is set to open in April, where they will be able to watch blockbusters on a large, curved Imax screen while lounging in oversize leather chairs. The cost of a ticket for one of the 80 seats: close to $100.

Imax’s growth has been particularly speedy in countries like China and Russia, where going to the movies makes for a popular night out. In Russia, the number of Imax screens increased to 15 from four last year, while in China, the total doubled to about 100, Mr. Gelfond said. Average Imax ticket prices in China are almost as high as in the United States, and Chinese consumers resold seats to “Avatar” for up to $100 on eBay, Mr. Gelfond said.

“All over the world, people are willing to pay for premium content,” Gelfond discovered. “They want something they can’t get at home.”

Source: The New York Times