Cinemas Weigh Launching New Large Screen Brand to Challenge Imax

Mint

7 days ago

(Bloomberg) -- Some of the largest US theater chains, including Cinemark, Regal and Marcus, have held preliminary talks about jointly marketing their big-screen theaters to blunt the growing influence of Imax Corp. within the movie industry and the public, according to people familiar with the matter.
The talks so far have focused on setting shared standards for the chains' 'premium large-format' theaters to better compete with Imax's giant screens, said the people, who asked not to be identified because the talks are private. The chains have a number of options, the people said. One is to unite around a new brand name for their premium format. Another would be to keep their premium brands and add an industrywide designation that would act a stamp of approval for their locations. It's also possible they do nothing and maintain their current ties with Imax.
Some chains are alarmed by the growing presence of Imax in Hollywood advertising — including posters in their own lobbies that feature the brand as prominently as movie titles. Imax licenses its technology to theaters and has about 372 US locations — a fraction of the screens nationwide. Yet it consistently generates more than 10% of the box office for blockbusters.
Displacing Imax would be a tall order: The company has spent half a century refining its technology and building its brand. It has attracted marquee filmmakers — including Oppenheimer director Christopher Nolan, Dune director Denis Villeneuve and Sinners director Ryan Coogler — to shoot their films using Imax cameras.
There could be financial benefits for theaters, including less money going to Imax for licensing its technology, the people said. The chains have also discussed among themselves the possibility of asking studios to help market any new brand they might adopt.Representatives of Cinemark Holdings Inc., Marcus Corp., Regal Cineworld and Imax all declined to comment. AMC Entertainment Holdings Inc., the largest chain and biggest operator of Imax screens in the US, isn't participating in the deliberations, according to the people.
Movie theaters have invested in big-screen names of their own that don't use Imax technology. Imax said last quarter its big-screen footprint is double the size of its nearest competitor.
Cinemark's company-branded big screens are called XD, while Regal's are dubbed RPX and Marcus' MT-X. They are typically 70 feet wide, or more, and taller than those found at traditional theaters. Some come with premium sound systems and seats that move. They resonate with fans, who will often pay 30% more for seats.
Also driving the push for change is the sluggish recovery of the theater industry following the Covid-19 pandemic and labor strife in Hollywood that cut the supply of new films. Ticket sales nationally remain well below the pre-Covid peak.
Despite those troubles, Imax is set to score its best year for box-office revenue in 2025 on the back of movie marketing campaigns that carry taglines like 'Filmed For Imax.'
Cinema owners who don't have Imax screens have bristled at receiving film posters from major Hollywood studios with taglines such as 'See it in Imax,' the people said.
Another source of tension is the deal that Imax struck to release Netflix Inc.'s film based on C.S. Lewis' The Chronicles of Narnia in late 2026, the people said. The Greta Gerwig-directed film will run for two weeks exclusively on Imax screens before being released on the streaming service.
Some theater owners are in revolt because Netflix has largely shunned theatrical releases. Its co-Chief Executive Officer Ted Sarandos has criticized theaters as an inefficient distribution model. Speaking at an industry event earlier this year, Regal CEO Eduardo Acuna wouldn't commit to playing the Narnia movie in his theaters even though his circuit operates Imax screens, arguing that two weeks is too short a period to draw a significant number of moviegoers.
And earlier this month, Tim Richards, CEO of Vue Entertainment, Europe's largest independent cinema chain, debuted a large-screen format called Epic, in part due to Imax's deal with Netflix.
In a May interview with the New York Times, Adam Aron, chief executive officer of AMC, said his circuit will screen Narnia to support Imax.
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