Imax's Italian job
Screen company, Medusa ink six-theater deal
"It's particularly exciting because Medusa is a subsidiary of Fininvest, one of the largest media companies in Europe," Imax co-chief executive officer Rich Gelfond said. Putting the two names together promises to boost Imax's profile and its marketing potential.
Medusa recently announced that it is investing about $300 million to build 20 multiplexes of between nine and 12 screens near commercial centers in Italy over the next five years. Gelfond said the Imax theaters will "by and large, but not exclusively" be part of those multiplexes.
The first two Imax theaters will open in Rome and Milan, and the rest will open by 2003. As is typical in these Imax arrangements, Medusa will own the theaters, leasing the Imax 2-D and 3-D equipment as well as paying royalties.
Rocked by T-Rex
Gelfond sees the Italian six-theater deal as fueling Imax's momentum with operators in Hollywood, North America and internationally. He said the 180-strong worldwide theater network and recent B.O. successes such as "Everest" and "T-Rex: Back to the Cretaceous" led to Disney's recent decision to release "Fantasia" in Imax on Jan. 1, 2000.
"You'll see more theaters posting better box office numbers, and the launch of better films. And with better films the exhibitors are more comfortable, and then you can sell more theaters," he predicted.
One analyst was less enthusiastic about the deal's significance. "I guess it's OK," he said. He is not planning to change his neutral call on the stock.
Imax's next step is to use the format on the horror genre, which has greater box office appeal than the saccharine story of the likes of "T-Rex."3-D hits Top 20
"T-Rex" became the first 3-D film to rank among the Top 20 highest-grossing films of the weekend, and it has pulled in more than $15 million to date. "An eight-story dinosaur did it," an Imax spokesperson said. It is the second large-format film to crack that figure, after last year's MacGillivray Freeman-produced Imax film "Everest."
Fininvest is the largest media company in Italy, with operations in television, production, distribution and publishing.
Founded in 1967, Toronto-based Imax has theaters in 25 countries and has forged partnerships with Disney, Viacom-owned Famous Players and Sony.
