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Imax Foresees ‘Impact’ in 2017 From Its Luxury Home Theater Joint Venture With TCL

The popular expression “Go big or go home” couldn't be “more relevant than in the cinema industry right now,” Imax CEO Richard Gelfond said on a Wednesday earnings call. “With TV technology becoming so advanced and with Netflix and Amazon…

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becoming such efficient distributors of film and television content, albeit often on a delayed basis, studios understand that big blockbuster movies are the best way to get consumers out of their homes and into the cinema,” Gelfond said. “And those consumers are increasingly looking for differentiated experiences when they come to the cinema,” such as with the “big screens with crystal-clear immersive visuals and sound” that the “Imax experience” has to offer, he said. Imax had about 80 “signings” of luxury home theater system installations at the end of 2015 through its joint venture business with TCL (see 1403120026), Gelfond said in Q&A. “We haven't put a lot of capital into it,” he said of the joint venture. “It's a stage capital investment kind of thing,” he said, though “I was pleasantly surprised by the amount of orders we had last year. But you shouldn't look for a significant accretion or dilution from that effort in 2016. I think it's more like 2017, where you'll see an impact.”