Imax's Business Segments

IMAX Corporation, together with its consolidated subsidiaries, is one of the world’s leading entertainment technology companies, specializing in motion picture technologies and presentations. IMAX offers a unique end-to-end cinematic solution combining proprietary software, theater architecture and equipment to create the highest-quality, most immersive motion picture experience for which the IMAX® brand has become known globally. Top filmmakers and studios utilize IMAX theaters to connect with audiences in innovative ways, and as such, IMAX’s theater network is among the most important and successful theatrical distribution platforms for major event films around the world.

Overview of IMAX Corporation

IMAX Corporation is renowned as a global leader in the design and manufacturing of premium projection and sound system components tailored specifically for large-format theaters. With an extensive array of products and services, IMAX not only serves the cinematic experience but also plays a significant role in film production and distribution. Below is an extensive breakdown of the segments, products, and services offered by IMAX Corporation.



1. IMAX Theater Systems

A. Digital Projection Systems
- Projectors: IMAX has developed advanced digital projectors that provide high-quality image clarity and stability. The projectors are complemented by a sophisticated digital theater control system.
- Sound Systems: IMAX sound systems feature six or twelve channels of audio capable of delivering up to 12,000 watts, immersing viewers in a powerful sound experience.
- Screens: IMAX screens come with proprietary coating technologies enhancing brightness, contrast, and color depth.
- 3D Glasses Cleaning Equipment: These systems include specialized equipment for maintaining the cleanliness and functionality of 3D glasses.

B. Theater System Configurations
- IMAX Digital Systems: The most prevalent configuration, representing over 90% of the IMAX theater network, utilizes digital technology and does not require analog film prints.
- IMAX GT Systems: Dedicated to the largest IMAX theaters, these systems use film-based technology for an expansive viewing experience.
- IMAX SR Systems: These are designed for smaller theaters, maintaining the immersive experience but with a reduced scale.
- Dome Systems: Specialized heavily curved and tilted screens are used in dome-shaped theaters, providing a unique viewing experience.

C. Laser-Based Systems: The introduction of laser-based digital theater systems has further enhanced the quality of visual projections, with an ongoing rollout of these advanced systems.



Film Production and Distribution

A. IMAX DMR (Digital Re-mastering)
- IMAX developed proprietary technology in 2002 that allows Hollywood films to be digitally remastered into the IMAX format. This technology preserves and enhances visual clarity and sound quality, facilitating the simultaneous release of films in IMAX theaters across the globe.

B. Distribution Rights
- The company distributes a variety of large-format films through institutional theater partners, including both films produced in-house and those acquired from independent producers.

C. Revenue Model
- IMAX earns a percentage of box-office receipts ranging from 10-15% for films converted to the IMAX DMR format, in return for providing access to its marketing platform and premium distribution.

D. Post-Production Services
- Through IMAX Post/DKP Inc. a wholly-owned subsidiary, the company offers film post-production, quality control, and digital post-production services for large-format films.



Joint Revenue Sharing Arrangements

IMAX offers arrangements where the theater systems are provided to exhibitors in exchange for a percentage of box office revenue, often coupled with an initial payment. This flexible model allows theaters to minimize upfront costs while sharing the success of the films shown.



Theater Operations and Maintenance

A. Maintenance Services
- IMAX provides extensive maintenance services for its theater systems, ensuring that performance standards remain high.

B. Theater Ownership and Operation
- IMAX operates several theaters on leased premises and engages in profit-sharing arrangements with other theaters. The company also offers management services for additional theaters.



Cameras and Equipment Rentals

IMAX rents out its proprietary large-format film and digital cameras, which are integral to both 2D and 3D productions. These cameras run 65mm film, exposing 15 perforations per frame, resulting in an image area nearly ten times larger than standard film formats.

- Proprietary Technology: The IMAX 3D camera is notable for its advanced capabilities, enabling filmmakers to shoot high-quality images from varied locations, including underwater environments.
- High-Speed 3D Camera: This camera utilizes large digital sensors, representing cutting-edge technology in motion picture production.



Other Revenue Streams

IMAX’s operations also include:
- Sale of after-market parts related to its theater systems.
- Various services related to theater design and installation, contributing to the comprehensive solutions offered to clients.



Conclusion

IMAX Corporation maintains a strong position in the entertainment industry through its innovative products and services tailored for large-format cinema. Its integrated approach in theater systems, film production, and state-of-the-art rental offerings places it at the forefront of enhancing the cinematic experience for audiences globally.