The Motley Fool Previous Page

Maximus IMAX

Rick Aristotle Munarriz
March 25, 2008

Making the big screen even bigger is proving to be contagious. IMAX (Nasdaq: IMAX  ) announced a joint venture deal with Regal Cinemas (NYSE: RGC  ) yesterday, bringing its new digital projection systems into 31 Regal theaters in a partnership that finds both companies sharing the costs and profits of the endeavor.

IMAX's ability to transform an ordinary multiplex into a mammoth-sized, premium-priced moviegoing experience has been a hit with both studios and exhibitors. Movie makers love the incremental revenue stream. Theater owners love having a product that no home theater system can even begin to match.

The big catalyst is this year's rollout of IMAX's digital projection system, saving costly reel printing fees, solving inventory hang-ups, and giving everyone greater programming flexibility.

You don't need yesterday's Regal announcement to show you that IMAX is now celluloid royalty. Between a