Imax Expands in China Anticipating More Hollywood Releases
In a significant development that underscores the growing dynamics of the cinematic world in China, Imax Corp. has embarked on an ambitious expansion plan within the Chinese market. With a new agreement in hand with Wanda Film Holding Co., Imax is set to significantly increase its footprint in what stands as its second-largest market globally. This move is not just a bet on the increasing popularity of the gigantic screening experience but also a strategic alignment with the anticipated influx of Hollywood blockbusters into China.
The expansion entails the opening of up to 25 new Imax locations across China over the forthcoming three years. Furthermore, the deal also includes plans to upgrade or renew 100 existing Imax theaters, ensuring that audiences can experience the latest in high-quality viewing technology. This decision by Imax to deepen its investment in China is a testament to the market’s resilient and growing appetite for cinema, especially for films that leverage Imax’s visually stunning, large-format screens.
Rich Gelfond, CEO of Imax, noted the strategic nature of this expansion, highlighting it as the company’s initial collaboration with Wanda since its acquisition by Tencent Holdings Ltd.-backed China Ruyi Holdings Ltd. last December. Imax’s resolve in China is further evidenced by recent agreements with other major players in the Chinese cinema industry, including Hengdian Films and Bona Film Group, illustrating a broad commitment to solidifying its presence in the region.
The timing of Imax’s expansion comes as China gradually opens up its movie market once more to Hollywood productions. This revival of Hollywood content is keenly anticipated, marked by the announcement of major releases like Walt Disney Co.’s Marvel’s Deadpool & Wolverine, set for a July release in China. This shift towards integrating more Hollywood films into the Chinese cinematic landscape is viewed by many, including Gelfond, as a potential boost to the diversity of content available to Chinese audiences. In the past, Hollywood films have contributed significantly to Imax’s box office revenue in China, a trend that had shifted towards local language films more recently. Gelfond expresses optimism for a balanced mix of Hollywood and local Chinese content in the future, fueled by China’s more open import policy for foreign films.
Moreover, Imax and Wanda are not merely focusing on traditional film content; they are also exploring the potential for diversifying viewers’ experiences by introducing alternative content such as concerts and live events. This initiative draws inspiration from successful endeavors in regions like Hong Kong and Taiwan, where Imax has hosted live-streamed events, including the National Basketball Association finals, to enthusiastic audiences. The capability to offer such diverse content underlines Imax’s dedication to innovating the cinematic experience beyond conventional movie screenings.
While Imax continues to push the boundaries of cinematic experiences in China, discussions about the acquisition of its public Imax China Holding Inc. subsidiary are still ongoing. Following the shareholders’ vote against the acquisition last year, Gelfond indicates that the company is still evaluating its options, suggesting that Imax’s strategies in China are as much about corporate maneuvering as they are about cinematic expansion.
As Imax forges ahead with its plans in China, the wider implications for the movie-going experience and the international film industry are profound. Imax’s expansion is a bellwether for the increasing global interconnectedness of cinematic content, signaling a future where audiences, regardless of geographic location, can enjoy a diverse array of film offerings, from blockbuster Hollywood hits to niche local productions, all within the immersive scope of Imax’s large-format screens.
The partnership between Imax and Wanda, coupled with the evolving landscape of Chinese cinema, is setting the stage for an enriched cinematic culture in China. As the country continues to open its doors wider to international content, the beneficiaries will be not just the Chinese viewers but the global cinematic community, eager to see how this expansive market will influence trends and preferences in global film production and distribution.
