Stock analysis site The Motley Fool takes a look at RealD recently announced XLW Cinema System and what it means for IMAX:
The footsteps behind IMAX (Nasdaq: IMAX) are getting a little louder these days as RealD (NYSE: RLD) does everything it can to expand its business into premium theaters. Last week, RealD announced its XLW Cinema System for premium large screen venues, an extension of the XL Cinema System. The system is designed for auditoriums with screens up to 82 feet wide, nearly as big as large IMAX theaters. This gives current RealD customers like Cinemark (NYSE: CNK) and Regal Entertainment (NYSE: RGC) another option for their premium product.
IMAX should keep an eye on this because RealD is trying to get a foothold in the premium theater market that IMAX dominates. The draw for RealD is better economics than its regular systems and an expansion of the RealD brand into a name that consumers can associate with a premium experience. For now, there are a few reasons IMAX won’t be pushed off its premium pedestal anytime soon:
- IMAX has spent years building a brand that customers recognize and will pay a premium for. Tron: Legacy showed the power of this experience, with IMAX commanding more than 20% of the domestic box office in just 234 theaters.
- RealD still can’t match the size of traditional giant screen IMAX theaters.
- IMAX has partnerships with every major studio, and the premium price at IMAX theaters makes studio box office look much better than any other 2-D or 3-D offering.
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UPDATE: Check out other stock sites for news on IMAX shares:
American Banking & Market News: William’s Capital Research Initiates Coverage on Imax Corporation (NASDAQ: IMAX)
Bloomberg BusinessWeek: Imax’s Widescreen Profit Performance
Market Intelligence Center: IMAX (IMAX) Showing Bearish Technicals But Could Fall Through $25.77 Support