IMAX, Wanda to add more cinemas

By Huang Ying (China Daily) Updated: 2013-07-26 08:22

"Their commitment to quality, innovation and building the IMAX brand means that we're not just adding more theaters, we're delivering IMAX audiences top-notch theaters with strong operations."

As the largest theater operator in Asia, Wanda Cinema Line operates 119 theaters with 1,038 screens, of which 73 were IMAX screens as of June 30.

It generated first-half revenue of 1.96 billion yuan ($319 million), up 35.1 percent year-on-year, according to the company.

"Our IMAX theaters have been showing a strong performance, while Wanda Cinema Line is constantly developing. We're delighted to build on our successful partnership that continues to differentiate our cineplexes by offering a premium entertainment experience," said Jerry Ye, vice-president of Wanda Cultural Group, a subsidiary of Dalian Wanda Group.

In 2012, IMAX reported global revenue of $284 million, up 20 percent year-on-year.

China's share of IMAX's global revenue jumped from 4 percent in 2008 to 16 percent in 2012, making it the fastest-growing market for IMAX across the globe.

EntGroup Consulting, a Beijing-based entertainment industry consultancy, expects the growth momentum in the China market will last another two to four years.

The consultancy said China is expected to account for one-quarter of IMAX's total revenue as of 2016, getting close to the US share.

"Over time we would expect China to represent somewhere between a quarter and one-third of our worldwide revenue," said Gelfond.

Currently, 108 IMAX theaters are being operated by Wanda and other companies in China, but a lot more are waiting to be opened in the next few years.

"We have a backlog that includes the deal we signed today plus the deal we announced last week. The best way to say it is that we expect 300 to 400 theaters to be open in China in the next five years," Gelfond said.

Since the initial agreement in 2011 between IMAX and Wanda, the giant-screen operator has shifted its model in China from one where it sells equipment for high upfront fees to one where it contributes equipment and gets a percentage of box office revenue.

This is IMAX's first full revenue-sharing deal in China. "That's increasingly how we are doing business in China and in the world," said Gelfond, adding that he expected the trend to continue.