Mouse to the IMAX

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There's a new studio partner in the pocket of IMAX (Nasdaq: IMAX) and it's a big one. Disney (NYSE: DIS) will be releasing five of its upcoming theatrical releases through the "larger than life" IMAX platform, starting with Jim Carrey's A Christmas Carol next year.

It's another notch in IMAX's bedpost. Two years ago, it seemed as if IMAX was at the mercy of Time Warner's (NYSE: TWX) production slate. Thankfully Time Warner has a knack for blockbusters like this summer's The Dark Knight and the wildly popular Harry Potter film series.

However, now that IMAX is padding Time Warner releases with a wider variety of films like DreamWorks Animation's (NYSE: DWA) Kung Fu Panda, it gives theater owners more reasons to pay up for IMAX installations.

IMAX can use the push, given its uninspiring financials lately. The good news is that the exhibitors are hopping on at a frenetic pace. Joint venture deals with leading chains like AMC and Regal Cinemas (NYSE: RGC) are growing the IMAX footprint within existing multiplexes. IMAX can retrofit an existing movie house to showcase its sensory-tickling cinematic experience. Exhibitors then charge moviegoers a premium.

This is huge, now that companies like Thomson (NYSE: TMS), AccessIT (Nasdaq: AIXD), and IMAX are enabling the migration to digital projection systems. Exhibitors can now team up with studios for instant content refreshes without the heavy costs of printing and distributing archaic film reels.

Investors don't get it. Like most consumer-facing companies, IMAX's stock is in a funk. However, all of the seeds that it has been sowing over the past year -- from the studio deals with Disney and DreamWorks Animation to the multiplex pacts with Regal and AMC -- will grow nicely in the coming years.

It's never too early to grab a good seat at cheap matinee pricing. The feature presentation is about to begin.

Other hits to catch on your not-so-big monitor screen:

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IMAX is a Motley Fool Rule Breakers selection. DreamWorks Animation SKG and Walt Disney are Motley Fool Stock Advisor recommendations. Try any of our Foolish newsletters today, free for 30 days.

Longtime Fool contributor Rick Munarriz is a movie buff but he does not own shares in any of the companies in this story, save for DreamWorks Animation and Disney. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.

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11/23/2009 3:59 PM
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