IMAX and CJ CGV Co., Ltd. Expand Relationship With Joint Venture Deal for Up to 15 New IMAX® Theatres in Korea
March 10, 2010 – 11:22 amLeading Exhibitor Commits to 10 New Joint-Venture Locations, Option to Increase to 15
Deal Also Includes Upgrades for Four Existing Locations to IMAX’s Digital Projection System
Expansion Follows Success of CJ CGV’s Existing IMAX Locations
SEOUL, Korea, March 10, 2010 (GLOBE NEWSWIRE) — IMAX Corporation (Nasdaq:IMAX) (TSX:IMX) today announced that CJ CGV Co. Ltd., the leading theatre exhibitor in Korea, has signed an agreement to install up to 15 new digital IMAX® theatre systems, with the rollout scheduled to begin later this year, and to upgrade four existing film-based IMAX theatres to digital systems. The agreement was signed following the success of the exhibitor’s five existing IMAX locations in Seoul, Daegu and Gwangju, where the current IMAX® 3D release of Avatar has generated more than $6.5 million.
“Our IMAX theatres are boosting attendance and driving more traffic to our multiplexes, which positively impacts our bottom line,” said Mr. Kim Joo Hyung, CEO of CJ CGV. “IMAX’s digital theatre system and joint venture model improves the economics of the IMAX theatre business for us, which creates even more opportunities to expand our relationship and offer more customers The IMAX Experience(R) at more locations.”
Under the terms of the agreement, CJ CGV will add 10 new joint venture locations in the major cities of Korea with an option to increase that number to fifteen. The rollout of new locations is expected to begin later this year. Additionally, the exhibitor will upgrade four of its existing IMAX film-based locations, which are not structured as joint ventures, to IMAX’s digital projection system. The upgrades will bring the exhibitor’s total digital IMAX (non-JV) locations to five, and the exhibitor’s total combined IMAX tally to a minimum of 15. The upgrades are expected to be completed by the end of April 2010.
“Demand for The IMAX Experience is increasing in South Korea, a market we believe holds great potential, especially as we expand our overall presence in the Asia-Pacific region,” said IMAX CEO Richard L. Gelfond. “Our international growth strategy is based on building momentum with existing successful relationships. We’ve been in business with CJ CGV for five years, and we are very pleased to expand with such a strong exhibitor.”
“CJ CGV has marketed the IMAX brand in creative and tailored ways that have generated more consumer awareness in Korea, and we’re now seeing that awareness translate into greater demand and further growth,” added Larry O’Reilly, IMAX’s Executive Vice President, Theatre Development. “We are looking forward to sharing future success with CJ CGV as it expands its IMAX footprint in South Korea.”
UPDATE: More coverage on IMAX’s South Korea theaters:
Reuters: Imax signs JV for up to 15 theaters in South Korea
Variety: Imax growing on Korean audiences
The Hollywood Reporter: Imax, Korean chain pact for up to 15 more
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