From niche documentaries to Hollywood: How Canadian-based IMAX rewrote its script

Globe and Mail

22-05-2025

Richard Gelfond first became intrigued by IMAX after seeing a movie at the Smithsonian during a family vacation in Washington, D.C. When he eventually acquired the Toronto-based company in 1993, the IMAX name was synonymous with nature and space documentaries, filmed with unprecedented high definition, and shown in museums and science centres around the world. Mr. Gelfond had other notions.
'The vision was that IMAX was such a good experience that we could take the original idea, broaden the platform and go Hollywood,' he says. 'That seemed like a sensible idea – until we got into the company.'
IMAX cameras weighed more than 500 pounds and were difficult to operate, each print cost $40,000 because of the specialized film needed, and films had to be shown in purpose-built and expensive buildings.
Mr. Gelfond realized that he needed to revamp technology, locations and the business model if Hollywood was ever going to be an option.
To achieve its new vision, the IMAX team first came up with a way to retrofit multiplexes instead of having to build new theatres. They also engineered down the cost of equipment by half.
The biggest breakthrough came with the launch of IMAX DMR (digital media remastering) in 2002 and finding a way to make cameras cheaper and lighter. Using special lenses and attachments on existing digital cameras enabled the shooting of IMAX films for a much lower cost.
The new digital technology also meant that the $40,000 for each film print went down to $100 or less, says Mr. Gelfond.
For more commercial appeal, the company also figured out how to take existing Hollywood films and, using algorithms, turn them into IMAX films. 'When we started converting the Hollywood films, it was better than the 35 millimeter version,' he says.
The next 15-plus years saw IMAX extend its brand into more traditional theatres, and establish a larger presence in China, which now houses 807 of IMAX's almost 1,800 theatres worldwide.
'The art of surviving in any business is about being able to adapt to new circumstances,' says Anthony Schaller, president and chief technology officer of Light AI, a health care technology company that's developing artificial intelligence diagnostic solutions.
Mr. Schaller has four decades of experience in global strategy, innovation and product and technology development. He has been part of transformation efforts at organizations ranging from Ticketmaster to Match.com, and says that IMAX, like other companies that reinvented themselves, recognized that change is essential.
'Recurring evolution is a norm and the ability to pull it off is what separates high performers from businesses who have a brief moment at the top,' says Mr. Schaller. 'Ultimately, it's about staying competitive, relevant and profitable. What worked yesterday might not work tomorrow. Companies that proactively evolve and embrace advancement are best positioned to seize new opportunities.'
For IMAX, another challenge arrived when the COVID-19 pandemic hit and people stopped going to theatres. There was speculation that streaming would be the new movie-watching experience. Mr. Gelfond didn't believe that was going to last, and perceived another chance to change the IMAX model.
'We said we're not going to waste this opportunity to look at how to further evolve the business.'
IMAX has expanded its offerings to include concert experiences and foreign language content (which now accounts for 20 per cent of the company's annual box office revenue). In 2024, almost 200 IMAX theatres across China live-streamed the world championships of the multiplayer online game League of Legends to near sold-out crowds.
Last year, IMAX Corporation had an annual revenue of US$352 million. 'We've been having a higher market share post-pandemic than we were pre-pandemic,' says Mr. Gelfond.
Every company faces tests and moments when it has to pivot. When IMAX has, he says 'We attacked all the problems in small pieces. Because I felt that as you started to solve each one, it would lead to other good things. And it did.'