Motley Fool examines how IMAX beats piracy

April 30, 2009 – 5:46 pm

In a Motley Fool article focusing on piracy, the stock experts take a look at how IMAX beats the scourge of the film industry:

Longtime Rule Breakers recommendation IMAX (Nasdaq: IMAX) tackles the dual threats of piracy and commoditization by producing a movie-watching experience that quite frankly can’t be copied and taken home. I mean, who installs a home theater that covers your entire field of vision, with surround sound to match?

IMAX is not profitable today, as the focus now is on rolling out new theater installations — which will pay dividends later on, as the screening fees start to rack up. And IMAX has a technological lock-in that guarantees that no third parties will butt in with unapproved content. The piracy problem can be countered in part with tools of the trade and by adoption of progressive technology.

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