Did IMAX Give Up on "The Hunger Games" Too Soon?

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

If you were looking forward to catching The Hunger Games blown up on IMAX (NYSE: IMAX  ) this weekend, you're out of luck.

The limited weeklong engagement ended last night. If you head out to your local multiplex with an IMAX screen today, you'll be seeing Time Warner's (NYSE: TWX  ) Wrath of the Titans instead.

There's nothing necessarily wrong with Wrath of the Titans. The trailer looks impressive. This is the type of action flick with high-end special effects that lends itself perfectly to IMAX's larger-than-life platform.

However, after breaking a few IMAX records and becoming Hollywood's third-biggest opening weekend ever, most box office watchers see Lionsgate's (NYSE: LGF  ) The Hunger Games easily besting new arrivals Wrath of the Titans and Mirror, Mirror. At least one projection has The Hunger Games ringing up nearly twice as many ticket sales as Wrath of the Titans this weekend, and that's without the benefit of the premium-priced IMAX screens.

It also doesn't help that the rebooted Titans franchise hasn't been a hit with the critics. Clash of the Titans two years ago received just an embarrassing 28% in Rotten Tomatoes, the aggregator website that compiles the percentage of film critics that actually like a movie. It's still early, but Wrath of the Titans has an even more ominous 25% rating. In other words, just one out of every four critics recommends paying up to catch today's debut.

Clash of the Titans was still a global hit, but if consumers feel the same way as the critics, burned moviegoers may not be interested in supporting the sequel.

The silver lining for IMAX here is that if Wrath of the Titans is a dud, it won't have to sit on it for too long. Many of its screens switch over to Titanic in 3-D -- a brief theatrical run of the world's second-highest-grossing movie of all time, remastered in 3-D -- next Friday.

If James Cameron's epic doesn't play too well, it too is only slated for a weeklong stint.

This is actually great news for IMAX investors. With so many movie studios angling to get their more promising releases blown up on IMAX's higher-priced screens, IMAX is now able to move quickly from release to release. Instead of clinging to a theatrical dud because it doesn't have new product on the way -- and this used to happen from time to time just a couple of years ago -- IMAX's release slate is starting to look like a punk rock band's music set with a lot of brief bursts of energy.

Even if Wrath of the Titans disappoints over its entire theatrical run, there will clearly be more than enough fans out there to support a strong opening weekend for IMAX showings -- and that's really all IMAX needs. It's the traditional exhibitors that will have to worry about still screening the movie a couple of weeks from now if it's a cinematic dud.

More importantly, IMAX will now be ready to rally behind Catching Fire -- Lionsgate's sequel to The Hunger Games -- when it hits a theater near you next year.

So, in the end, IMAX's appeal as a play on The Hunger Games mania may not be as deserving as Lionsgate or series book publisher Scholastic (Nasdaq: SCHL  ) , the two companies that are truly benefiting the long-term appeal of the trilogy. However, IMAX should be ready to make even more money on the property next year -- with plenty of brief bursts of energy along the way.

Feature attraction
I've been a believer in IMAX for years. It's been a market beater both times that I have recommended IMAX as an investment to Rule Breakers newsletter subscribers. As part of the CAPScall initiative for accountability, I've also had a bullish IMAX call on Motley Fool CAPS for some time.

 If you're ready for a different kind of feature presentation, ask yourself if you know the two words that are scaring the pants off Steve Ballmer. It's a free report, but like a hot theatrical release it won't be showing forever, so check it out now.

Motley Fool newsletter services have recommended buying shares of IMAX. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Longtime Fool contributor Rick Munarriz calls them as he sees them. He does not own shares in any of the stocks in this story. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.

Read/Post Comments (2) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On March 30, 2012, at 2:11 PM, kevin4fr29 wrote:

    I took the whole family to see The Hunger Games in IMAX last Sunday (it was great) because I knew it was only a one week run. If anyone is disappointed they missed the IMAX version because they assumed it would be in theatres longer they likely won't make that same assumption again. Perhaps this is part of IMAX's strategy though. not only do shorter runs means more agility to move off a "Dud" and onto the the next "New Release" they could also have the effect of "Front-Loading" more IMAX fans into those shorter runs for fear of otherwise missing out. However, if this is in fact a strategic move, IMAX should be careful not to overdo it. If if it is always hard to get a decent seat because every IMAX movie is crammed or sold out, the fans may just stop choosing IMAX over other premium options. I personally prefer to wait until later in an IMAX run so I can get a good seat without lining up. I also buy all my tickets in advance through my smart phone. I just wave my phone at the self service kiosk, print my own tickets, and walk straight to the IMAX entrance. I love technology!

  • Report this Comment On April 01, 2012, at 6:23 PM, stockworldpicks wrote:

    Title is misleading as Imax already had prior commitment to Wrath of the Titans. Any research would have found that this deal was already in place. Hunger Games was a recent addition and the one week was worth it. Here is my article that talks about companies benefitting from Hunger Games and mentions the prior commitment.

    Disclosure: Long IMAX, LGF

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1851257, ~/Articles/ArticleHandler.aspx, 10/27/2016 6:39:42 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,169.68 -29.65 -0.16%
S&P 500 2,133.04 -6.39 -0.30%
NASD 5,215.97 -34.29 -0.65%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/27/2016 4:02 PM
IMAX $30.40 Down -0.48 -1.55%
IMAX CAPS Rating: ****
LGF $19.78 Down -0.36 -1.79%
Lions Gate Enterta… CAPS Rating: ****
SCHL $38.06 Up +0.14 +0.37%
Scholastic CAPS Rating: No stars
TWX $88.30 Down -0.40 -0.45%
Time Warner CAPS Rating: ***