IMAX® And MEGARAMA Expand Partnership With Three New IMAX With Laser Locations Across France

Rhea-AI Summary

IMAX and French exhibition company MEGARAMA have announced an agreement to install three new IMAX with Laser systems in France. This deal will double IMAX's footprint with MEGARAMA and includes locations in the northern part of France (set to open in 2025) and two in the suburbs of Paris (scheduled for 2026). Currently, IMAX and MEGARAMA operate two locations in France, with four more planned sites in the backlog. The new locations will feature IMAX's advanced laser projection technology, enhancing the cinematic experience with better image quality and sound. This agreement follows a successful year for IMAX in France, highlighted by record box office earnings of over $23 million in 2023 and a strong Q1 in 2024 driven by the success of "Dune: Part Two".

Positive

• IMAX and MEGARAMA to open three new IMAX with Laser systems in France.
• Deal doubles IMAX's footprint with MEGARAMA in France.
• New locations include one in northern France (opening in 2025) and two in Paris suburbs (opening in 2026).
• IMAX and MEGARAMA currently operate two locations in France.
• IMAX achieved over $23 million in box office revenue in France in 2023.
• 2024 Q1 marked IMAX's second-best quarter in France, bolstered by "Dune: Part Two".
• IMAX with Laser technology offers superior image quality and sound.

Negative

• Opening dates for new IMAX locations are set for 2025 and 2026, indicating a lengthy wait period.
• Current operational sites are to two, with six more still in backlog.

Insights

Market Research Analyst

The agreement between IMAX and MEGARAMA to install three new IMAX with Laser locations across France reflects the growing demand for premium cinematic experiences. For the French market, which has shown a strong affinity for high-quality movie experiences, this expansion is likely to attract a significant audience, especially in major urban areas. IMAX's continued investment in advanced technologies like IMAX with Laser indicates a strategic push to capitalize on this demand and differentiate itself from other exhibitors. The technology's ability to deliver superior visuals and audio quality could lead to higher customer satisfaction and repeat viewers, positively impacting ticket sales and overall revenue.

In 2023, IMAX achieved record box office revenues in France, a key indicator of the market's potential. The success of high-profile films like "Dune: Part Two" has demonstrated the audience's willingness to pay a premium for a superior viewing experience. By doubling its footprint with MEGARAMA, IMAX is reinforcing its presence in the French market, which could lead to enhanced brand loyalty and competitive advantage.

Financial Analyst

From a financial perspective, this expansion deal represents a strategic move to bolster IMAX's revenue streams. The French market's recent performance has been robust, with over $23 million in box office revenue in 2023, marking it as one of IMAX's top ten global markets. The strong Q1 results in 2024 further affirm the market's potential. By increasing the number of IMAX with Laser locations, the company is positioning itself to capture more market share and revenue in the long term.

However, investors should consider the associated costs of installing and maintaining advanced IMAX with Laser systems. These systems require significant capital expenditure, which could affect short-term financials. Additionally, the success of this investment hinges on continued audience interest in premium movie experiences and the release of high-grossing films. While the outlook appears positive, these factors introduce an element of risk that investors should monitor closely.

Tech Expert

IMAX with Laser represents the pinnacle of cinematic technology. The 4k laser projection system, custom-designed lenses and proprietary technology are engineered to deliver an unparalleled moviegoing experience. These advancements result in brighter images, higher resolution, deeper contrast and a wider color gamut, setting IMAX apart from standard cinema offerings.

For tech-savvy audiences and cinephiles, the introduction of such cutting-edge technology is a significant draw. It elevates the overall viewing experience, making it more immersive and lifelike. This could lead to increased ticket sales, especially for blockbuster releases known for their visual and auditory spectacles. Moreover, the investment in such advanced technology underscores IMAX's commitment to innovation and quality, which could enhance its reputation and attract more partnerships with exhibitors globally.

New Agreement Doubles IMAX's Footprint with Paris-Based Exhibitor in Thriving French Cinema Market

PARIS and NEW YORK, May 15, 2024 /PRNewswire/ -- French exhibition company MEGARAMA and IMAX Corporation (NYSE: IMAX) today announced an agreement for three new state-of-the-art IMAX® with Laser systems across France. The deal will bring The IMAX Experience to key locations across the country, including one system in a large city in the north of France – set to open in 2025 – and two locations in the suburbs of the country's populous capital, scheduled to open in 2026.

The new agreement doubles IMAX's footprint with the Paris-based exhibitor in France and marks the second deal in just over a year for the two companies. Inclusive of this agreement, IMAX and MEGARAMA currently operate two locations in France – with four more in backlog in the country – and one additional location in backlog in Morocco.

"This new agreement with IMAX allows us to offer our audience an enriched and distinctive cinematic experience, catering to those seeking new emotions and premium technologies," said Jean-Pierre LEMOINE, founder and President of MEGARAMA.

"MEGARAMA is an excellent partner that continues to steadily increase its commitment to IMAX, making it clear that IMAX delivers a strategic advantage and the best experience for audiences," said Rich Gelfond, CEO of IMAX. "As we continue to grow our global footprint, this new deal – our second with MEGARAMA in a year – underscores the strong demand for The IMAX Experience among audiences and exhibitors in France and worldwide."

The new agreement comes as IMAX continues to ride a consistent wave of momentum in France, which is a top ten global market for the Company. 2023 was the highest grossing year ever for IMAX in the country, delivering over $23 million in box office. In 2024, the Company delivered its second-best Q1 ever in France, driven by the record run of "Dune: Part Two", which now stands as the second-highest grossing film ever in the country for IMAX with over $4.8 million in box office to date.

The three new MEGARAMA locations in France will be equipped with IMAX with Laser, IMAX's most advanced experience. Immersive by design, 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. It is set apart by a groundbreaking 4k laser projection system that features a new optical engine, custom designed lenses, and a suite of proprietary technology that delivers brighter images with increased resolution, deeper contrast, and the widest range of colors exclusively to IMAX systems. 

About MEGARAMA 

MEGARAMA is a leading cinema operator in France, Spain, and Morocco, with a total of 38 multiplexes and 308 screens. Founded in 1996 by Jean-Pierre Lemoine, MEGARAMA is committed to offering its guests the best cinema experience, with state-of-the-art technology, comfortable seating, and a wide range of films and events. MEGARAMA is also a pioneer in the development of cinema in Africa, with a presence in Morocco since 2006 and plans to expand to other countries in the continent. For more information, visit www.MEGARAMA.com. 

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 March 31, 2024, there were 1,772 IMAX systems (1,697 commercial multiplexes, 12 commercial destinations, 63 institutional) operating in 89 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: 

For IMAX:

Investors:
Jennifer Horsley
jhorsley@imax.com
212.821.0154

Media:
Mark Jafar
mjafar@imax.com
212.821.0102

For Megarama:

Olivier Labarthe
ol@MEGARAMA.com
33 616 907 055

 

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SOURCE IMAX Corporation

FAQ

What new locations will IMAX and MEGARAMA open in France?

IMAX and MEGARAMA will open three new IMAX with Laser systems in France, one in the north (2025) and two in the suburbs of Paris (2026).

How will the new IMAX with Laser systems enhance the movie experience?

The new IMAX with Laser systems feature advanced 4k laser projection, custom designed lenses, and proprietary technology for brighter images, deeper contrast, and superior sound.

How much did IMAX earn from the French market in 2023?

IMAX achieved over $23 million in box office revenue in France in 2023.

When are the new IMAX locations in France expected to open?

The new IMAX locations in France are expected to open in 2025 and 2026.

What movie contributed to IMAX's strong Q1 performance in 2024 in France?

"Dune: Part Two" significantly contributed to IMAX's strong Q1 performance in 2024 in France, grossing over $4.8 million.