Imax Thinking Very Big (IMAX)

Imax IMAX, known for its massive movie screens, made the change from NASDAQ to the New York Stock Exchange this morning. The listing change comes right after Imax's announcement of a deal to install more of its digital theatre systems in China. Imax is looking to establish itself in China by expanding from 40 sites today to 100 sites in the next couple of years. Imax CEO, Richard Gelfond, spoke to Nightly Business Report about the upcoming exchange listing change and Imax's outlook. Gelfond spoke about the Imax's strong growth over the last couple years. He stated Imax's box office results doubled in 2010. The company raked in $600M in 2010 from $300M in 2009. Gelfond expects a strong 2011 with 17 films slated to be shown on Imax theatres including numerous big budget blockbusters such as Disney's DIS Pirates of the Caribbean: On Stranger Tides and Warner Bros.' TWX Harry Potter and the Death Hallows, Part 2. Gelfond attributes Imax's strong growth due to a business model change. Initially, the company used a film-based medium that involved a 500-pound film reel that cost $40,000. Imax changed its business model around digital video which dramatically brought down costs to only $175. This allowed increased permeation of Imax's technology in theatres around the world. Gelfond finds that the Chinese market, Imax's second biggest market after the United States, is very receptive to Imax. China's total screen count has gone from 6,000 today to a projected 25,000 in five years. Gelfond sees excellent organic growth potential in China, possibly surpassing the United States. In an interview with Bloomberg, Gelfond was asked about possible takeover rumors. Gelfond stated Imax's growth potential was too great for the company to sell in the short term. Gelfond additionally preached balance between carrying 2-D and 3-D films to prevent against any possible backlash from movie goers against 3-D films affecting Imax's growth. Imax is currently entering in a new joint venture with Discovery DISCA and Sony SNE to create a new 3-D television channel. The channel, called 3net, plans to launch on Sunday night.