China has become a problem territory for IMAX (NYSE:IMAX), Fool contributor Tim Beyers says in the following video.
How so? Next month, IMAX will have to choose how it screens Gravity and The Hunger Games: Catching Fire in China since the two movies open on consecutive days. The overlap could prevent IMAX from maximizing profits on two huge properties in one of its key global territories. (Remember, Iron Man 3 was a record-setter for the company in that part of the world.)
Meanwhile, Gravity's worldwide success -- the film had earned 22% of its $171 million domestic haul from IMAX showings through Oct. 20 -- has rekindled the notion that premium theater experiences are the future. Maybe, Tim says, but investors thought the same of 3-D after Avatar became a $2 billion worldwide winner.
Should investors be concerned by IMAX's China constraints? Or is increasing demand a buy signal? Tim answers these questions and more in the video. Please watch now, and then leave a comment to let us know what you think.