Imax Sees Live-Event Streaming as 'Significant' Future Growth Driver
Imax is “moving beyond blockbusters” to become a “global platform,” said CEO Rich Gelfond on a Q4 earnings call Wednesday. The company is connecting its theaters over a high-speed network that can broadcast high-definition video and high-fidelity audio around the world, creating a “decentralized global arena” that covers 79 locations in three countries, Gelfond said.
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Gelfond sees Imax as a “bridge between the theatrical and streaming experiences.” Streaming services can provide a pipeline of new content and experiences for Imax; streaming services can get from Imax “high impact ways to launch their titles and differentiate them,” he said, highlighting the company’s partnership with Disney+ (see 2111080026) for 13 Marvel titles in Imax Enhanced. Colliers analyst Steven Frankel said at the time of the Disney+ announcement that he expects Imax to follow with similar agreements with Paramount+, Peacock and HBO Max, “given Imax's strong relationship with the streaming services' parent companies.”
Gelfond said the partnership with Disney for an exclusive theatrical release of The Beatles: Get Back, including an interactive Q&A with director Peter Jackson, had “virtual sellouts” in a limited run in 400 theaters. The film grossed more than $2 million at Imax theaters, despite having been available on Disney+ for months via an Imax Enhanced partnership, he said.
The company held several exclusive events in December, streaming The Tragedy of Macbeth, including a live Q&A with Joel Coen and Frances McDormand, and West Side Story, featuring a Q&A with director Steven Spielberg, to Imax theaters worldwide.
Using Imax tools, artists can create “intimate events at scale,” said Gelfond. He spotlighted a Free Larry Hoover Benefit Concert with Kanye West and Drake live from the Coliseum in Los Angeles that was shot with the same Imax-certified cameras used to shoot Dune. Imax collaborated with Amazon Prime Video on the December event, which was delivered live to 35 Imax theaters in the U.S. and Canada and streamed free on Amazon.
A Variety report after the concert showed the tricky nature of putting on such an event. It noted that after the concert, the edited version for Prime Video didn’t include Drake’s 12-minute song set from the concert. The report also said the show stirred controversy with “adjustable ticket prices, with some seats going for thousands of dollars at face value, before it was subsequently announced that the concert would be streamed live and for free on Prime Video.”
Gelfond said Imax wants to be the “global showcase for the biggest artists,” calling live events a “significant opportunity” and a way for artists to reach more fans “without sacrificing the quality and intimacy of an in-person experience.” For viewers, he said, the Imax events “approach what it's like to sit in the front row of a live event.”
Gelfond compared current coverage with live events in 79 theaters to Madison Square Garden in New York. As live events roll out to “200, 300, 500” theaters globally, it could be a “significant revenue and earnings contributor.” To date, live events have been music and sports; next up are comedy events, he said. Imax is experimenting with price for the live events, he said. An additional West concert, held Tuesday, had a $30 ticket ceiling, with other tickets priced more in line with typical Imax presentations, he said.
Imax is continuing to focus on delivering immersive cinematic experiences as people are “rediscovering the magic of going to the movies” after theaters re-opened from COVID-19 shutdowns, Gelfond said. In Q4, the company completed its transition to an all-laser product line, rolling out the last of its Xenon projectors, he said.
Imax’ $108.6 million Q4 revenue “blew out expectations,” Colliers' Frankel wrote investors Thursday. The analyst had modeled $91.6 million. Frankel noted for 2022 a “steady stream of Imax DNA-laden, high profile movies,” such as The Batman, that "should enable the company to bounce back sharply from the challenges of the last two years.” Imax grew its global market share to 3%, up from 2.6% in 2019, it said Tuesday. Shares closed 8.5% higher Thursday at $21.14.