China Gets the Big Picture

IMAX (Nasdaq: IMAX  ) continues its globetrotting ways, inking an eight-screen deal this week to expand further into China.

Living up to Shakespeare's "all the world's a stage" nugget, IMAX has spent the past few weeks shaking hands for new system installations in Russia, Japan, and the Philippines. IMAX has announced 103 system signings this year, nearly three times what it had lined up through all of last year.

China is a perfect market for IMAX's overseas push. Despite being typically perceived as an emerging market, the world's most populous nation takes its eye candy seriously. Television broadcasters are set to go wholly digital over the next five years, providing a buying opportunity for leading smartcard maker China Digital (NYSE: STV  ) .

Several companies specialize in pumping out multimedia advertising in heavily trafficked areas. Focus Media (Nasdaq: FMCN  ) fills busy buildings with ad-backed monitors and digital poster frames. VisionChina Media (Nasdaq: VISN  ) cranks out video ads on buses, trains, and other forms of mass transportation.

Consumers in major cities are bombarded with video around the clock, so a night out at the movies really has to up the stakes to truly stand out. IMAX's gargantuan screens and high-tech sound systems should help exhibitors do exactly that.

This should also be a good time for IMAX shareholders. The stock has surrendered more than a third of its value since peaking three months ago, but favorable sentiment appears to be returning to the sector.

This month's successful IPO of RealD (NYSE: RLD  ) -- the country's leading provider of 3-D screen technology -- has drawn attention to the promise of premium theatrical experiences.

This weekend's top cinematic draw is also a hit on IMAX. Time Warner's (NYSE: TWX  ) Inception delivered more than 11% of the film's ticket sales through IMAX over the weekend, even though the screens accounted for just 5% of the total screens playing Chris Nolan's dreamy mindbender.

The big picture continues to get bigger -- especially now in the world's biggest nation.

Have you paid a premium to see a movie on IMAX? Please share your perspective in the comment box below.

IMAX and China Digital TV Holding are Motley Fool Rule Breakers choices. Try any of our Foolish newsletter services, free for 30 days. It's a screening you won't want to miss.

Longtime Fool contributor Rick Munarriz is a movie buff, but he doesn't own shares in any of the stocks in this story. 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.


Read/Post Comments (0) | Recommend This Article (4)

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.

Be the first one to comment on this article.

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: 1242340, ~/Articles/ArticleHandler.aspx, 8/31/2014 4:30:04 AM

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...


Advertisement