IMAX expanding in Japan, world amid growing demand for 3-D movies

IMAX inks new theater deal in Japan

TOKYO — Megascreen theater company IMAX Corp. said Tuesday it will expand in Japan — the latest in a series of international deals inked recently amid growing demand for 3-D movies following the success of science fiction blockbuster Avatar.

The Canada-based company, along with local partner Tokyu Recreation, will add five of its giant 3-D equipped screens in the Japan over the next two years. Since Tokyu opened four IMAX theaters last year, box office receipts have exceeded expectations and convinced the Japanese company to build more.

“Performance has been really strong,” said IMAX chief executive Richard Gelfond of the Japanese theaters. “It’s probably the strongest start that we’ve had in any territory in our history.”

The deal is part of the IMAX’s aggressive expansion, particularly in Asia. Those plans had already been in place last year as the company sought growth and a rebound from losses in 2008.

But then Avatar — and its phenomenal success — came along in December. The film fueled revenues, piqued interest in 3-D worldwide and added momentum to IMAX’s expansion.

Avatar, the highest grossing film of all time, also broke global IMAX box office records, bringing in $237 million on 256 screens. The company’s biggest hit before the 3-D science fiction epic was the Dark Knight, which made $62 million.

Financial returns for movie theaters were already good, Gelfond said in Tokyo. “But Avatar really put them in another strata.”

The agreement in Japan follows a 15-theater deal it signed last month in South Korea, a four-theater deal in France and an expanded partnership in Russia.

The emergence of 3-D televisions also has the company considering how to parlay its success into living rooms.

It may introduce a “very very high-end” 3-D home entertainment system in the future, Gelfond told The Associated Press. It is also working on a project with Sony Corp. and Discovery Communications to launch the first 3-D television channel next year.

“IMAX has been in the 3-D business for 25 years, so we have a fair amount of content in our library,” Gelfond said.

The company was originally known for offering educational films in science centers and museums. In 2002, it introduced technology that enabled standard 35mm movies to be digitally converted for its large-format cinemas at a reasonable cost.

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.

Worldwide, there are 430 IMAX theaters in 48 countries, with at least 50 more on the way in 2010.

The company’s revenue jumped 67 percent in 2009, and it rebounded to a net profit of $20.5 million. Its stock is up more than 200 percent over the past year.