With all due respect to my Dueling partner W.D. Crotty, "it's different this time" is the oldest line in the book. Why is the IMAX
Plus, as W.D. acknowledges, more than 98% of IMAX's profits comes from its hardware. That's a one-time installation fee, plus the maintenance agreement. Sure, software companies such as Oracle
Let's not forget, too, that the theater business is profitable only when Hollywood produces blockbusters. The vast majority of revenue from early ticket sales goes back to the filmmakers, producers, and distributors. The theater's cut becomes sizable only if the film sticks around for quite some time. With "one major Hollywood release every six to eight weeks," in W.D.'s own words, IMAX is pretty well depending on every movie on its screens to be a blockbuster success. That's highly unlikely, especially as the novelty wears off and folks revert to their established entertainment patterns.
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IMAX and XM are both Motley Fool Rule Breakers recommendations.