Following the rollout six months ago of its Private Theater initiative, an ambitious plan to provide customers with an in-home, immersive theater experience, IMAX (NYSE:IMAX) announced today it has entered into an agreement in which it has "acquired a stake and a significant option position" with PRIMA Cinema.
The agreement also includes a seat on PRIMA Cinema's board, IMAX said, and includes exclusive rights to resell PRIMA Cinema's products and services in China for five-years.
Utilizing its proprietary technology, PRIMA Cinema allows customers to watch newly released, feature length Hollywood movies from the comfort of their own homes. IMAX intends to integrate its proprietary digital remastering process to enhance the quality of PRIMA Cinema-delivered movies. IMAX said it is also exploring ways in which to integrate PRIMA Cinema's technologies into other IMAX platforms.
Commenting on the agreement with PRIMA Cinema, IMAX CEO Richard Gelfond said, "Today's agreement with PRIMA Cinema enhances our ability to deliver a premium, end-to-end in-home entertainment experience, combining the best of IMAX's immersive image and sound technology with the delivery of current theatrical titles."
Financial terms of the agreement were not disclosed.
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