1994 - New CEO’s Richard Gelfond & Brad Wechsler

Try to move IMAX into commercial movies Initial success, but even greater failure IMAX up for sale in 2000 & 2006

◦ No buyers!

Transitioning

Hollywood support

Rise of 3-D

Market Opportunities

Joint Ventures

Conversion to Digital

Premium Theatre Experience

New Business Model

Turning Point

IMAX puts up the cost of the IMAX system◦ $500,000

JV partner puts up the cost of building/retrofitting the theatre◦ $150,000 to convert

Box office profits split between the two◦ IMAX usually receives a 10%-15% share

Joint Ventures

Cost savings = more flexibility◦ Able to double the amount of films showing

Going Digital

Film$30,000/print

Digital $400/prin

t

IMAX scaled itself down to Hollywood’s size◦ Converting Hollywood blockbusters to IMAX’s

more vivid & immersive format◦ Screening films in reconfigured multiplexes ◦ Premium vs truly unique viewing experience

Premium Theatre Experience

15% bigger screen

Seats shifted forward 16 ft

Front seats removed

better sound better image

quality

What does “premium” look like?

IMAX needed content Hollywood needed to increase “WOW”

factor to compete with stunning home theatre systems

Game changers - Hollywood takes notice◦ Matrix movies (1999, 2003)◦ The Polar Express (2004)◦ 300 (2006)◦ The Dark Night (2008)

$65 million in IMAX ticket sales 10% of total from 1% of theatres Partially shot on IMAX cameras

Hollywood Support

IMAX has always been a 3-D leader Already has the 3-D technology installed

Rise of 3-D