Our take...
Imax has also benefited from the general digital 3D movement, rather than being threatened by the burgeoning digital 3D screen base (current total of 1,300 worldwide). For example, the company recently signed a deal with Dreamworks Animation for the release of its key 3D titles from 2009, and a 2D movie before then. In another example, Beowulf from Paramount was the first title released on both Imax 3D and digital 3D screens and other titles lined up include Fly Me to the Moon and U23D in early 2008. Imax has also cited impressive revenue returns for its locations. Together (Imax and digital 3D) screens grossed the majority of the box office from 22 per cent of screens in the third week of Beowulf's release, a benchmark for the 3D format. Moreover, Imax screens recorded the most impressive returns with 13 per cent of the box office from just 1.7 per cent of the screens in the opening weekend, and a ratio over even digital 3D screens of four times the revenue (due in part but not exclusively to a much larger seating capacity and higher ticket pricing), and 11 times higher than a standard 2D screen. The increase in Imax's screen base will further encourage Studios to add their growing list of 3D movies for an Imax release, and the prospect of the digital system brings closer greater print cost savings than the current $22,500 for a 2D release and $45,000 for a 3D release. However, it is worth noting that the company had originally intended to replicate the VPF model, used in the digital cinema world, where studio cost savings are used as a primary financing mechanism and would therefore erode some of the initial distributor advantages if this model was applied.