 New CEO’s Richard Gelfond & Brad Wechsler  Try to move IMAX into commercial movies  Initial success, but even greater failure  IMAX up for sale in 2000 & 2006 ◦ No buyers!

Hollywood support Rise of 3-D Market Opportunities Joint Ventures Conversion to Digital Premium Theatre Experience New Business Model

 IMAX puts up the cost of the IMAX system ◦ $500,000  JV partner puts up the cost of building/retrofitting the theatre ◦ $150,000 to convert  Box office profits split between the two ◦ IMAX usually receives a 10%-15% share

 Cost savings = more flexibility ◦ Able to double the amount of films showing Film$30,000/printDigital $400/print

 IMAX scaled itself down to Hollywood’s size ◦ Converting Hollywood blockbusters to IMAX’s more vivid & immersive format ◦ Screening films in reconfigured multiplexes ◦ Premium vs truly unique viewing experience

 15% bigger screen  Seats shifted forward 16 ft  Front seats removed  better sound  better image quality

 IMAX needed content  Hollywood needed to increase “WOW” factor to compete with stunning home theatre systems  Game changers - Hollywood takes notice ◦ Matrix movies (1999, 2003) ◦ The Polar Express (2004) ◦ 300 (2006) ◦ The Dark Night (2008)  $65 million in IMAX ticket sales  10% of total from 1% of theatres  Partially shot on IMAX cameras

 IMAX has always been a 3-D leader  Already has the 3-D technology installed