IMAX® And Major Cineplex Expand Longstanding Partnership with Three New IMAX With Laser Locations Across Thailand

Rhea-AI Summary

IMAX and Major Cineplex have announced plans to expand their partnership with three new state-of-the-art IMAX with Laser locations in Thailand, marking a significant step for IMAX in the Southeast Asian market. The deal aims to bring The IMAX Experience to new locations in Bangkok, enhancing the moviegoing experience for Thai audiences.

Insights

Market Research Analyst

IMAX's expansion in Southeast Asia, particularly Thailand, indicates a strategic move to capitalize on the region's growth potential. The entertainment industry, especially in emerging markets, is a significant contributor to economic development and consumer spending. The partnership with Major Cineplex, which is the largest exhibitor in Thailand, suggests a robust distribution channel for IMAX, potentially increasing market penetration and brand presence.

The box office results, with Thailand ranking in the top five Asian markets for IMAX, demonstrate a clear consumer demand. The record-breaking $5.4 million box office revenue in 2023, an increase from the previous year, reflects both the success of local language titles and the appeal of the IMAX Experience. This could signal a positive trend for future revenue streams and market share growth in the region.

The introduction of IMAX with Laser technology is a differentiator in the market, offering a superior viewing experience. This could attract a premium segment of moviegoers willing to pay higher ticket prices, potentially increasing per-customer revenue. However, the cost implications of such technology upgrades and their return on investment should be monitored.

Financial Analyst

The financial implications of IMAX's expansion deal with Major Cineplex are multi-layered. The investment in new IMAX with Laser locations is a capital-intensive endeavor with expected future returns. The immediate impact on IMAX's financials will likely be an increase in capital expenditures, which should be weighed against the anticipated incremental cash flows from the new locations.

Investors should consider the timing of these openings, with one location set for 2024 and others for 2026 and 2027. The staggered opening dates may help manage cash flow impact and provide a phased growth in revenue. Additionally, the emphasis on local language content, which has shown substantial box office success, could diversify and stabilize revenue sources, reducing reliance on international blockbusters.

It is essential to evaluate the competitive landscape and consumer trends in entertainment for the long-term sustainability of this expansion. The increasing presence of online streaming services poses a challenge to the traditional cinema model and IMAX must ensure its offering remains compelling enough to draw audiences away from home entertainment options.

Entertainment Industry Analyst

The strategic expansion of IMAX in Thailand aligns with a broader industry trend of targeting high-growth emerging markets. The entertainment sector in Southeast Asia is experiencing rapid growth, with a burgeoning middle class and increasing disposable incomes. IMAX's decision to focus on local language titles, such as the Thai language release 'Tee Yod', is a smart move to capture local audiences and reflects a global trend towards localized content.

The adoption of IMAX with Laser technology positions IMAX as a leader in cinematic innovation in the region. This technology, known for its sharper images and superior audio, caters to a growing consumer appetite for high-quality experiences. However, the success of this technology will depend on the execution of marketing strategies that effectively communicate the benefits to a diverse audience base.

IMAX's collaboration with Major Cineplex could also serve as a model for expansion in similar markets, leveraging local partnerships to navigate cultural nuances and consumer preferences. The long-standing relationship since 1998 provides a solid foundation for future growth and may encourage other regional players to seek similar collaborations.

New Agreement Furthers Rapid Expansion of IMAX across Southeast Asia

LAS VEGAS, April 9, 2024 /PRNewswire/ -- IMAX Corporation (NYSE: IMAX) and Major Cineplex today announced plans to expand their partnership with an agreement for three new state-of-the-art IMAX® with Laser locations. The deal will add systems to key locations across Thailand, including one in the bustling area of Bang Kapi, Bangkok — set to open in 2024 — and two additional locations in Bangkok set to open in 2026 and 2027.

The announcement was made today at the annual CinemaCon 2024 exhibition conference in Las Vegas.

The deal marks a significant step for IMAX in Thailand, bringing The IMAX Experience beyond city centers and into the suburbs of the country's populous capital. Major Cineplex is the largest exhibitor in Thailand with a growing regional presence, and currently operates nine IMAX locations across Thailand and Cambodia. The two companies have enjoyed a successful partnership since 1998.

"Major Cineplex is an excellent partner that continues to steadily increase its commitment to IMAX, furthering our momentum in the fast-growing Southeast Asian market," said Rich Gelfond, CEO of IMAX. "As we differentiate ourselves with more films and experiences created for IMAX, we continue to fuel strong demand for The IMAX Experience among audiences, exhibitors, and filmmakers."

"Our partnership with IMAX continues to be strong, and we're delighted to join forces with them yet again to bring Thai moviegoers the most premium moviegoing experience possible," said Vicha Poolvaraluck, Major Cineplex CEO. "We look forward to bringing IMAX with Laser to new locations in Bangkok and providing an unparalleled entertainment experience for our audiences – we are also excited to bring more Thai films to be converted to IMAX this year, further enriching the cinematic landscape in Thailand."

IMAX is seeing strong box office results in Thailand, which ranks among the top five Asian markets for the Company in 2024. 2023 was the highest grossing year ever in the country for IMAX with over $5.4 million in box office, beating the previous record set in 2022. This was driven in part by IMAX's increased focus on local language titles in the country – the first Thai language IMAX release, "Tee Yod", debuted in October 2023 and has delivered $500K in box office to-date.

The three new Major Cineplex locations in Thailand will be equipped with IMAX with Laser, IMAX's most advanced experience. IMAX with Laser has been developed from the ground-up to deliver crystal clear, lifelike images and precision audio for a moviegoing experience unlike anything else. The new locations will be set apart by the groundbreaking 4k laser projection system that features a new optical engine, custom designed lenses, and a suite of proprietary technology, all of which delivers brighter images with increased resolution, deeper contrast, and the widest range of colors exclusively to IMAX systems.

 About Major Cineplex

Major Cineplex Group Plc. (MAJOR) is Thailand's Best Entertainment Lifestyle Company with core business in cinema, bowling, karaoke, ice skating rink, advertising media, retails space, film distribution and movie content. MAJOR was listed on the Stock Exchange of Thailand (SET) in May 2002.

The "Cineplex" concept was first introduced to the Thais in 1995 when Mr. Vicha Poolvaraluk, the founder of MAJOR, built the first-of-its-kind Standalone "Cineplex" in Pinklao area of Bangkok. Currently MAJOR commands approximately 70% market share of the Thai cinema industry's admissions revenue. MAJOR has always been the first who invented and imported the newest world class technologies into the country. Total of 184 branches, 846 screens: Bangkok&Up-Country 175 branches 815 screens, International 9 branches, 46 screens.

About IMAX Corporation   

IMAX, an innovator in entertainment technology, combines proprietary software, architecture, and equipment to create experiences that take you beyond the edge of your seat to a world you've never imagined. Top filmmakers and studios are utilizing IMAX systems to connect with audiences in extraordinary ways, making IMAX's network among the most important and successful theatrical distribution platforms for major event films around the globe.   

IMAX is headquartered in New York, Toronto, and Los Angeles, with additional offices in London, Dublin, Tokyo, and Shanghai. As of December 31, 2023, there were 1,772 IMAX systems (1,693 commercial multiplexes, 12 commercial destinations, 67 institutional) operating in 90 countries and territories. Shares of IMAX China Holding, Inc., a subsidiary of IMAX Corporation, trade on the Hong Kong Stock Exchange under the stock code "1970". 

IMAX^®, IMAX^® 3D, Experience It In IMAX^®, The IMAX Experience^®, DMR^®, Filmed For IMAX^®, IMAX LIVE™, and IMAX Enhanced^® are trademarks and trade names of IMAX Corporation or its subsidiaries that are registered or otherwise protected under laws of various jurisdictions. For more information, visit www.imax.com. You may also connect with IMAX on Instagram (www.instagram.com/imax), Facebook (www.facebook.com/imax), LinkedIn (www.linkedin.com/company/imax), X (www.twitter.com/imax), and YouTube (www.youtube.com/imaxmovies). 

For additional information please contact: 

Investors:
Jennifer Horsley
jhorsley@imax.com
212.821.0154

Media:
Mark Jafar
mjafar@imax.com
212.821.0102

 

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SOURCE IMAX Corporation

FAQ

What is the latest agreement between IMAX and Major Cineplex?

IMAX and Major Cineplex have agreed to expand their partnership with three new state-of-the-art IMAX with Laser locations in Thailand.

Where will the new IMAX locations be located in Thailand?

The new IMAX locations will be in key locations across Thailand, including Bang Kapi, Bangkok, with openings in 2024, 2026, and 2027.

What is the significance of this agreement for IMAX in Thailand?

This agreement marks a significant step for IMAX in Thailand, expanding The IMAX Experience beyond city centers and into the suburbs of Bangkok.

What is IMAX with Laser and what does it offer?

IMAX with Laser is IMAX's most advanced experience, delivering crystal clear, lifelike images and precision audio for a unique moviegoing experience. It features a 4k laser projection system with brighter images, increased resolution, deeper contrast, and a wide range of colors.

How has IMAX performed in Thailand in recent years?

IMAX has seen strong box office results in Thailand, ranking among the top five Asian markets for the Company in 2024. 2023 was the highest grossing year ever in the country for IMAX.