IMAX Corporation (NYSE: IMAX) and Wanda Cinema Line Co., Ltd on August 2 announced that they have entered into the largest agreement in IMAX history - the building of 150 new IMAX theaters by Wanda Cinema Line. According to the agreement, these theaters will be built over a six-year period in China from 2017 and will be located across the country. In particular, 110 installations will be completed by the end of 2020.
The signing of this agreement is based on the long-term partnership between the two parties dating back to 2007, when Wanda Cinema Line's first IMAX theater commenced operation in Dongguan. Wanda Cinema Line, Dalian Wanda Group's cinema subsidiary, is the largest cinema chain in Asia and currently owns more than 160 IMAX theaters.
This agreement is expected to increase Wanda's IMAX theaters by more than 70% to 360, most of which will begin operating over the next three years. All theaters under the agreement will open by 2022. Following the signing of this agreement, the number of theaters to be built by IMAX China will increase by close to 60%. This deal is a new agreement, adding to the existing contract signed by the two companies in 2013, in which Wanda agreed to build 120 new IMAX theaters by 2020. Wanda currently expects the project under the earlier agreement to be completely installed before the end of 2016, four years ahead of the initial expected schedule. Almost half of Wanda Cinema Line's new IMAX theaters may be equipped with the latest IMAX laser projection technology from the end of 2018. Major terms of the new deal are very similar to those in the 2013 agreement.
IMAX CEO Richard Gelfond said, "This is a landmark development in IMAX's history and a strategic linchpin in our growth strategy, particularly as we've seen over time that signings lead to installs, higher box office and ultimately more revenue. It not only strengthens our market-leading position in China, the world’s fastest-growing film market, but also reinforces our strong working relationship with Wanda Cinema, one of our most important business partners, and speaks to the value Wanda places on the IMAX business. Wanda’s significant commitment also illustrates how our decade-long relationship has evolved well beyond its origins in one-time system sales. Wanda and IMAX now operate under a more sustainable revenue-sharing model that opens new opportunities to jointly release critically acclaimed local-language films and share box office revenue.”
Since 2013, IMAX and Wanda have worked together on many well known Mandarin films including Man of Tai Chi and Go Away Mr Tumor as well as the IMAX Mandarin box office hit, Mojin: The Lost Legend, screened last year.
"The importance of the strategic significance of our partnership with IMAX cannot be overemphasized," said Wanda Cinema Line President Zeng Maojun. "Our cooperation is absolutely crucial to the rapid growth of Wanda Cinema Line's business and our record as China's box office market leader for seven years in a row. Our business model will create a differentiated movie experience. By integrating Wanda's first class theater environment with the advanced cinematic technology of IMAX, we are able to provide the most immersive and exciting movie entertainment experience. By working together with IMAX, we look forward to engendering rapid expansion in China's film industry as well as bringing more blockbusters to Chinese audience on the basis of this successful model.”
Zeng Maojun highlighted IMAX and Wanda's partnership in playing a major role in the Hollywood hit release of Warcraft in June, which smashed box office records and triggered a cultural phenomenon. This film was produced and distributed by Lengendary Entertainment, a company under the Wanda...
IMAX Corporation (NYSE: IMAX) and Wanda Cinema Line Co., Ltd on August 2 announced that they have entered into the largest agreement in IMAX history - the building of 150 new IMAX theaters by Wanda Cinema Line. According to the agreement, these theaters will be built over a six-year period in China from 2017 and will be located across the country. In particular, 110 installations will be completed by the end of 2020.
The signing of this agreement is based on the long-term partnership between the two parties dating back to 2007, when Wanda Cinema Line's first IMAX theater commenced operation in Dongguan. Wanda Cinema Line, Dalian Wanda Group's cinema subsidiary, is the largest cinema chain in Asia and currently owns more than 160 IMAX theaters.
This agreement is expected to increase Wanda's IMAX theaters by more than 70% to 360, most of which will begin operating over the next three years. All theaters under the agreement will open by 2022. Following the signing of this agreement, the number of theaters to be built by IMAX China will increase by close to 60%. This deal is a new agreement, adding to the existing contract signed by the two companies in 2013, in which Wanda agreed to build 120 new IMAX theaters by 2020. Wanda currently expects the project under the earlier agreement to be completely installed before the end of 2016, four years ahead of the initial expected schedule. Almost half of Wanda Cinema Line's new IMAX theaters may be equipped with the latest IMAX laser projection technology from the end of 2018. Major terms of the new deal are very similar to those in the 2013 agreement.
IMAX CEO Richard Gelfond said, "This is a landmark development in IMAX's history and a strategic linchpin in our growth strategy, particularly as we've seen over time that signings lead to installs, higher box office and ultimately more revenue. It not only strengthens our market-leading position in China, the world’s fastest-growing film market, but also reinforces our strong working relationship with Wanda Cinema, one of our most important business partners, and speaks to the value Wanda places on the IMAX business. Wanda’s significant commitment also illustrates how our decade-long relationship has evolved well beyond its origins in one-time system sales. Wanda and IMAX now operate under a more sustainable revenue-sharing model that opens new opportunities to jointly release critically acclaimed local-language films and share box office revenue.”
Since 2013, IMAX and Wanda have worked together on many well known Mandarin films including Man of Tai Chi and Go Away Mr Tumor as well as the IMAX Mandarin box office hit, Mojin: The Lost Legend, screened last year.
"The importance of the strategic significance of our partnership with IMAX cannot be overemphasized," said Wanda Cinema Line President Zeng Maojun. "Our cooperation is absolutely crucial to the rapid growth of Wanda Cinema Line's business and our record as China's box office market leader for seven years in a row. Our business model will create a differentiated movie experience. By integrating Wanda's first class theater environment with the advanced cinematic technology of IMAX, we are able to provide the most immersive and exciting movie entertainment experience. By working together with IMAX, we look forward to engendering rapid expansion in China's film industry as well as bringing more blockbusters to Chinese audience on the basis of this successful model.”
Zeng Maojun highlighted IMAX and Wanda's partnership in playing a major role in the Hollywood hit release of Warcraft in June, which smashed box office records and triggered a cultural phenomenon. This film was produced and distributed by Lengendary Entertainment, a company under the Wanda Group. Warcraft broke IMAX China's first-day box office record with ticket sales of RMB35 million (USD5.3 million) and also set IMAX records for midnight and pre-sale ticket revenues in China.
Together with the agreement signed today, IMAX's year-to-date theater signings now stand at 284, including 229 in China, breaking IMAX's previous annual global record of 277. The Chinese market accounts for approximately one-third of the global box office revenue of IMAX.
As of June 30, 2016, IMAX has a total of 335 theaters in China, an increase from the 250 over the same period in 2015. Although the theater network grew significantly and now covers more than 100 cities across China, IMAX's average box office per screen has continued to be maintained at USD1.2 million to USD1.3 million over the last four years.
Earlier this year, IMAX announced that it would release four major Mandarin films this summer including For A Few Bullets by Wanda Film, Cold War II starring Chow Yun-fat and produced by Edko Film, Jacky Chan's fourth IMAX film Skiptrace, and 3D adventure film, Time Raiders, directed by Daniel Lee and jointly produced by Le Vision Pictures and Shanghai Film Group Corporation. At the same time, IMAX also plans to work on The Great Wall, starring Matt Damon and directed by Zhang Yimou. The company is also in the process of exploring other potential film partnership opportunities including Journey to the West: Conquering the Demons 2.
Director Zhang Yimou said, "China is a fast growing market and China's movie audience has also become increasingly demanding when it comes to film technology and theater experience. As a filmmaker, I hope to do the best I can to provide fans with the best experience and I am very much looking forward to being able to present my new film, The Great Wall, in the IMAX format across IMAX's growing theater network.”
IMAX plans to increase the number of Mandarin films in China and expects to release eight to 10 Chinese films in 2016, including The Monkey King 2 and Kungfu Panda 3. Major Hollywood films IMAX plans to release in China also include Finding Dory, Teenage Mutant Ninja Turtles: Out of the Shadows, Star Trek Beyond, Fantastic Beasts and Where to Find Them, and Doctor Strange. Elsewhere, IMAX China and China Media Capital have announced the establishment of a film production fund, which will jointly invest in 15 Mandarin films over the next three years.
In addition to Wanda Cinema Line, Wanda also owns AMC Entertainment, IMAX's first commercial cinema chain partner in North America and the largest IMAX theater cinema chain in the world. The company, which is also the largest IMAX theater cinema chain in North America, currently has a total of 185 IMAX theaters open and under commitment.
