IMAX taking its big screens to Asia as part of aggressive global expansion

IMAX focused on Asia as part of global expansion

TOKYO — Megascreen theater company IMAX Corp. is hoping Harry Potter’s magic touch will help catapult the company itself into a global smash hit.

Like Hollywood’s movie studios, IMAX is increasingly banking its future on countries outside North America. And Asia — the world’s most populous continent — plays a leading role in the company’s aggressive expansion plans.

The region is “crucial” for IMAX, said Larry O’Reilly, executive vice president for theater development.

“While the domestic release is important, the international release is even more important because when you have big franchise films like Harry Potter, they make more money internationally than they do in the domestic market,” O’Reilly said in an interview with The Associated Press.

O’Reilly traveled to Tokyo this week to promote “Harry Potter and the Half-Blood Prince,” premiering on Wednesday globally and at the three commercial IMAX screens that debuted in Japan this year.

Operated as a joint venture with Tokyu Recreation, the three locations are off to a bullish start. The first featured film, “Transformers 2: Revenge of the Fallen,” has grossed 54 million yen ($585,000) as of Saturday, he said.

“For us, big growth opportunities are here in Japan,” O’Reilly said, noting that the country is the world’s No. 2 moviegoing market. “We think it’ll be very reasonable to have 25-30 theaters in the not-too-distance future.”

Worldwide, the Canadian company operated 371 IMAX theaters at the end of the first quarter. Of those, it counted 250 commercial theaters, a 40 percent jump from the previous year.

It aims to build 1,000 commercial theaters within five to 10 years, O’Reilly said.

The goal represents a major evolution from its former self, known primarily for its educational offerings in science centers and museums. The company introduced technology in 2002 that enabled standard 35mm movies to be digitally converted for its large-format cinemas at a reasonable cost.

It now sees itself as an innovative platform for studios seeking to lure increasingly fickle customers.

“The moviegoing experience is changing dramatically, and we think we’re playing our small role in making that actually happen,” O’Reilly said.

An IMAX screen is like high-definition TV for a movie theater. They can be anywhere from 40-feet high such as on 42nd Street in New York to eight-story tall screens in London and Sydney.

As many as 700 people can fit in a single cinema. The technology offers enhanced visual and sound quality for several dollars more than the price of a regular ticket.

Including Harry Potter, the company expects 12 new IMAX releases this year. It maintains its roots in educational films as well, though O’Reilly adds that the company wants to make them “a little bit more entertaining.”

Last month, IMAX made its first foray into non-Hollywood films. It announced plans to start reformatting mainstream Chinese films for its theaters beginning in July 2010 as part of a deal with one of China’s largest film studios, Huayi Brothers.

The film “Aftershock” will be the first of three releases starting next summer at theaters in China as well as other parts of Asia and North America.

IMAX has 18 theaters in China, with plans to open 40 more by the end of 2012.

The company has also unveiled recent partnerships in Taiwan, Russia, India and Europe.

Investors appear to be cheering the company’s strategy. Its stock is up about 70 percent this year. The company expects to post a profit this year after booking a $33 million net loss in 2008.