market penetration importance of international market imax as global standard

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  • Slide 1
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  • Market Penetration Importance of International Market Imax as global standard
  • Slide 3
  • 1. Market Penetration 40% market penetration in North America 15% market penetration overseas IMAX is not something you can fit in every theatre
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  • 2. Importance of International Market Trend is that foreign box office is increasingly larger than domestic Avatar: 74% foreign Harry Potter & the Half-Blood Prince: 68% Ice Age 3: 78%
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  • While the domestic release is important, the international release is even more important because when you have big franchise films like Harry Potter, they make more money internationally than they do in the domestic market. Larry OReilly, IMAX Executive Vice President
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  • 3. Set a global standard IMAX brand has an opportunity to set itself as the global standard in the new areas of 3D and premium theatre experiences First-mover advantage
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  • Global Expansion Strategy Pick blockbuster films and make them bigger Align with top exhibitors worldwide Mixture of licensing and joint ventures
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  • Joint ventures Start small Developed Markets Licensing Minimize risk Emerging Markets
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  • Developed Markets
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  • USA 1 st Joint Venture AMC Entertainment North Americas second-largest exhibitor Joint venture solution to overcoming the high cost of installing IMAX technology Tested joint venture model beginning in 2003 100 theatres in 2008 Regal Entertainment Group USAs biggest exhibitor 31 theatres in 2008
  • Slide 11
  • Japan Tokyu Recreation - 2009 Owns one of Japans largest exhibition chains to open 4 IMAX theatres (3 opened to date) Japan is worlds No. 2 movie going market Agreement follows record-setting event Tokyo Dome converted to huge IMAX theatre for release of Speed Racer: The IMAX Experience 25,000 people attended
  • Slide 12
  • South Korea Joint Venture with CJ CGV - March 2010 Operates S. Koreas largest multiplex cinema chain A global firm operating in China and expanding into the USA this year Has 5 existing IMAX theatres under license model Will add 10 joint venture locations in major cities
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  • Emerging Markets
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  • India is another market with a lot of potential. Imax already has six theaters there and contracts for four more. In July, it will install its first digital projector in India, at a Mumbai theater run by a unit of the Reliance ADA Group. And if the partnership with China's Huayi Brothers proves profitable, Imax might consider the model for India and its huge Bollywood film industry. "I've started to give it some thought," says Gelfond. "Is there the right partner in India that would commit to enough theaters so it makes economic sense? We're not there yet." Indiafirst digital projector in IndiaReliance ADA GroupBollywood
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  • Our IMAX theatres are boosting attendance and driving more traffic to our multiplexes, which positively impacts our bottom line. IMAXs digital theatre system and joint venture model improves the economics of the IMAX theatre business for us, which creates even more opportunities to expand our relationship and offer more customers the IMAX experience at more locations Mr. Kim Joo Hyung, CJ CGV CEO
  • Slide 17
  • Demand for The IMAX Experience is increasing in South Korea, a market we believe holds great potential, especially as we expand our overall presence in the Asia- Pacific region. Our international growth strategy is based on building momentum with existing successful relationships. Weve been in business with CJ CGV for five years, and we are very pleased to expand with such a strong exhibitor. Richard Gelfond, IMAX CEO
  • Slide 18
  • CJ CGV has marketed the IMAX brand in creative and tailored ways that have generated more consumer awareness in Korea, and were now seeing that awareness translate into greater demand and further growth. Larry OReilly, IMAX Executive Vice President