IMAX partners with AMC to solidify European presence
What's the story
IMAX, the premium movie theatre company, has recently struck a deal with the biggest movie operator in Europe, AMC.
As per the new deal, the companies will be building 25 new theatres across Europe, among which 10 will be in the UK alone.
Germany, Italy, Spain and Scandinavia are also on the line to get their new IMAX theatres.
Deal
Salient takeaways of AMC-IMAX deal
IMAX and AMC will spend $25m on expansion and share the revenues.
IMAX's chief executive, Rich Gelfond said this partnership is "historic", as over the years IMAX couldn't establish a proper presence in UK due to its infrastructure.
Here "the theatres are smaller, they are dated and don't really fit the IMAX specs, and the build-out [of new cinemas] has been slow," said Gelfond.
AMC Theatres
AMC Theatres- Chinese owned US enterprise
AMC Theatres of the US are controlled by China's Wanda Cinema Line, owned by China's richest man Wang Jianlin.
In November last year, AMC took over UK-based Odeon & UCI Cinemas for $1.2 billion from Terra Firma and became the largest exhibition company.
AMC recently bought the largest cinema chain in the Nordic and Baltic regions, Nordic Cinema Group in a $964 million deal.
China
IMAX is making a killing in China
This new partnership between AMC and IMAX will take the total number of IMAX theatres in the UK to 250, which is still lower that the 350 in the US and nearly 800 in China.
Around one-third of the total revenue of IMAX comes from China. In 2015 IMAX was able to garner a whopping $373.8 million in revenue from China alone.
Expansion
IMAX has been on an expansion spree
In October 2016 IMAX signed a five-theatre deal with Les Cinémas Gaumont Pathé, the biggest cinema chain operator in France.
In January this year, IMAX signed a deal with Majid Al Futtaim Cinemas to bring three more IMAX theatres to the Middle East.
IMAX recently signed a deal with Regal Entertainment Group to install 11 additional theatres in the US.
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IMAX
Betting big to bring the world's most immersive movie experience
IMAX has built a projection system that allows images to be shown on up to 100ft wide screen, without compromising the quality and has its own sound system.
It has over 1000 theatres across the globe in around 66 countries and also offers high-resolution cameras to film-makers.
IMAX is also the provider of a software that converts normal camera footage into high-end quality.