Wanda Film and IMAX Expand Strategic Partnership with Sweeping Agreement Spanning Technology and Content

Rhea-AI Summary

Wanda Film and IMAX have announced an expanded strategic partnership to enhance their footprint in China. The agreement entails upgrading 61 top-performing Wanda Film locations to IMAX® with Laser technology, renewing up to 37 existing IMAX locations, and potentially adding 25 new locations over the next three years. The collaboration also includes developing exclusive content and experiences in documentaries, music, gaming, and sports. This move strengthens IMAX's leading position in China, ensuring continued growth and innovation in the cinematic experience.

Positive

• Wanda Film to upgrade 61 locations to IMAX with Laser technology.
• Renewal of up to 37 existing IMAX locations for another five years.
• Potential addition of up to 25 new IMAX locations over the next three years.
• Collaboration on exclusive content across documentaries, music, gaming, and sports.
• Fortifies IMAX's position as the dominant platform in China's largest circuit.
• Strong slate of Chinese and Hollywood blockbusters anticipated in the pipeline.

Negative

• None.

Insights

Financial Analyst

The agreement between Wanda Film and IMAX to upgrade 61 locations to IMAX with Laser technology, along with the renewal and potential addition of more locations, signifies a substantial financial commitment from both parties. For IMAX, this partnership strengthens its market position in China, a important market given its size and growth potential. Wanda Film's commitment suggests confidence in the IMAX brand and the premium viewing experience it offers.

Financially, the upgrade to IMAX with Laser represents a multi-million dollar investment in technology, which could enhance revenues through higher ticket prices and increased theater attendance. The extension and potential addition of new locations provide IMAX with a steady stream of revenue from equipment and maintenance contracts over the coming years. However, it also requires significant capital expenditure upfront, which can impact short-term financials but can be offset by long-term gains in market share and brand loyalty.

Investors should monitor the impact of these upgrades on ticket sales and overall profitability in subsequent earnings reports. The financial health of Wanda Film will also be a key factor, as their ability to sustain this investment could influence the success of this partnership.

Tech Expert

The rollout of IMAX with Laser technology is significant from a technological standpoint. IMAX's laser projection system, which includes a 4k laser projection system and custom-designed lenses, is designed to deliver superior image quality and immersive experiences. These advancements in projection technology can set IMAX apart from competitors, drawing movie-goers who seek a premium cinema experience.

The IMAX with Laser technology's features—such as brighter images, increased resolution, deeper contrast and a wider range of colors—are likely to enhance the overall viewing experience. This can lead to higher customer satisfaction and repeat visits, which are important for theaters looking to maintain and grow their audience base in a competitive entertainment market.

Technological upgrades in the cinema industry often lead to a cycle of reinvestment and innovation. By adopting state-of-the-art technology, Wanda Film positions itself as a leader in the sector, potentially inspiring other exhibitors to follow suit and push for higher standards in visual and audio quality.

Market Research Analyst

The strategic expansion between Wanda Film and IMAX provides key insights into market dynamics and consumer behavior in China's cinema industry. With a strong slate of Chinese and Hollywood blockbusters, this partnership comes at a time of rising demand for high-quality cinematic experiences. This move could capitalize on the growing trend of premium theater experiences, which have shown resilience even as home entertainment options proliferate.

From a market perspective, the renewal and potential expansion of IMAX locations indicate that Chinese consumers are willing to pay a premium for enhanced movie experiences. This is a positive indicator for the overall health of the premium cinema sector in China, suggesting that there is still significant growth potential despite the challenges posed by digital streaming services.

For investors, understanding these consumer trends is essential. The partnership not only solidifies IMAX's position in the Chinese market but also highlights Wanda Film's strategy to differentiate itself through superior technology and exclusive content. This can lead to increased market share and stronger brand loyalty, both important for long-term growth.

Wanda Film to Upgrade 61 Top-Performing Locations to IMAX^® with Laser and Collaborate with IMAX on New Events and Experiences

SHANGHAI, June 18, 2024 /PRNewswire/ -- Wanda Film, China's largest exhibitor, and IMAX Corporation (NYSE: IMAX), IMAX China (HKSE: 1970) today announced plans to expand their longstanding strategic partnership with a sweeping agreement spanning technology and content.

The agreement will secure and fortify Wanda Film's leading IMAX footprint — the largest IMAX circuit in China. Under the terms, Wanda Film will upgrade 61 of its top performing locations to state-of-the-art IMAX with Laser technology — including top-grossing IMAX locations in Tier 1 cities Beijing, Shanghai, Guangzhou, and Shenzhen. Additionally, Wanda Film will renew up to 37 existing IMAX locations for another five years and, subject to mutual understanding, add up to 25 new IMAX locations over the next three years.

Furthermore, IMAX and Wanda Pictures will also explore opportunities to collaborate on exclusive awe-inspiring content and experiences across documentaries, music, gaming, and sports. IMAX has a longstanding partnership with Wanda Pictures, the company's production and distribution arm, on feature releases, including 2021's Filmed for IMAX hit "Detective Chinatown 3."

"For years, based on our core commitment to elevating moviegoers' viewing experience, Wanda Film has been a pioneer in adopting and promoting premium projection technology to create a state-of-the-art film viewing environment," said Ms. Chen Zhixi, Chair of Wanda Film. "We successfully ensured the long-term collaboration with IMAX, a major partner. Alongside our joint efforts in upgrading moviegoing experience, we will work with IMAX to enhance projection standards for a wide range of films, to allow even more moviegoers to discover the wonder and joy of the immersive experience in theatres.

"With a strong, balanced slate of Chinese and Hollywood blockbusters in the pipeline over the next several years, this landmark agreement with Wanda Film fortifies IMAX's position in China's largest circuit at a time of immense opportunity," said Rich Gelfond, CEO of IMAX. "By securing a renewed commitment from China's largest exhibitor, IMAX grows its lead as the dominant platform for immersive, cinematic entertainment in China."

"Under the leadership of Ms. Chen, we're grateful that Wanda Film is recommitting to IMAX across its top-performing locations," said Daniel Manwaring, CEO of IMAX China. "We believe the strategic partnership between Ruyi and Tencent can open new doors for Wanda Film and IMAX to collaborate across blockbuster films as well as documentaries and events in music, gaming, and sports."

The agreement comes as IMAX prepares to unveil a strong summer slate of Chinese and Hollywood films in China, ahead of an anticipated robust content pipeline in 2025 and 2026. The Chinese summer slate in 2024 features Filmed for IMAX release "Decoded" from longtime IMAX filmmaking partner Chen Sicheng. The 2025 global film slate will feature a record 14 Filmed for IMAX releases, including a yet-to-be-announced Chinese tentpole during the pivotal Chinese New Year holiday.

Wanda Film is the largest exhibitor in China and IMAX's biggest exhibition partner in the world, with 381 IMAX locations in operation and another 19 in backlog. The two companies have enjoyed a successful partnership since 2007, when Wanda opened its first IMAX^® location in Dongguan, China. Both sides have since maintained close business cooperation and believe to accomplish partnership in a wider business scope in the future. 

IMAX with Laser is 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 Wanda

Wanda Film Holding Co., Ltd., a publicly listed company in Shenzhen Stock Exchange in China, 002739.SZ (hereinafter referred to as Wanda Film), was formerly known as Wanda Cinema Line Co., Ltd., and went public in 2015. In 2017, it was officially renamed as Wanda Film. The company's business scope extends to a full scope of film industry all the way from the downstream, exhibition, to the upstream, film investment, production, and distribution, as well as adjacent and derivative businesses, such as games distribution and merchandise.

Wanda Film consistently focuses on providing the optimal movie-going experience for its customers. The company continuously introduces and promotes high-quality screening technologies, aiming to present a state-of-the-art viewing environment for movie-goers. Its efforts in developing screening technology are particularly noteworthy. As of 31 December 2023, the company operates 905 cinemas with 7,546 screens in China, including 709 self-developed cinemas with 6,156 screens, among which are 381 IMAX screens in operation, making it the cinema chain with the largest number of IMAX screens in China.

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: 

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 partnership between Wanda Film and IMAX?

Wanda Film and IMAX have expanded their strategic partnership to upgrade 61 locations with IMAX with Laser technology, renew up to 37 existing locations, and potentially add up to 25 new locations in the next three years.

How many Wanda Film locations will be upgraded to IMAX with Laser technology?

A total of 61 top-performing Wanda Film locations will be upgraded to IMAX with Laser technology.

Will Wanda Film add new IMAX locations under the new agreement?

Yes, under the new agreement, Wanda Film may add up to 25 new IMAX locations over the next three years.

What types of exclusive content will IMAX and Wanda Film develop?

IMAX and Wanda Film will develop exclusive content and experiences across documentaries, music, gaming, and sports.

How does the new agreement impact IMAX's position in China?

The agreement strengthens IMAX's leading position in China by expanding its footprint and enhancing technology at Wanda Film locations.

Which cities will see upgrades to IMAX with Laser technology?

The upgrades will include top-grossing IMAX locations in Beijing, Shanghai, Guangzhou, and Shenzhen.

When did Wanda Film and IMAX first partner together?

Wanda Film and IMAX first partnered in 2007 when Wanda opened its first IMAX location in Dongguan, China.