Poseidon's Misadventure

It was supposed to be a joyous soiree. Then disaster struck, and everything was turned upside-down. The slowly sinking vessel started taking in water. This wasn't just the plot to Time Warner's (NYSE:TWX) Poseidon. It's also how the box-office gods played things out for the film's shaky opening.

The film, a loose adaptation of the 1970s' campy yet trend-setting The Poseidon Adventure, wasn't exactly seaworthy as a summer blockbuster. The film rang up an estimated $20.3 million in ticket sales over the weekend, and it's not a good sign when just 1% of the country's population goes out of its way to catch a new flick. Given the film's production budget of $160 million, and likely tens of millions more in marketing costs, the film is unlikely to turn a profit during its theatrical run. I'm now left wondering whether folks will be interested in the DVD in a few months, since the movie was widely panned by film critics.

This is also bad news for IMAX (NASDAQ:IMAX). The large-screen specialist was banking on its "bigger than life" version of the movie to be a hit with audiences, and moviegoers' lukewarm reception is likely to sting early in the summer season. Perhaps IMAX and Time Warner will find a savior at the end of June, when Superman Returns soars onto screens.

IMAX is banking more on the superhero flick than the one about the capsized ship. The company teamed up with Time Warner to transform 20 minutes of Superman's action scenes into 3-D thrills for IMAX patrons. Film buffs like Roger Ebert have praised first-run releases on IMAX as a superior experience to the local multiplex; now Superman Returns finds IMAX raising the stakes by making that experience entirely different.

It's easy to see why Time Warner covered the bulk of costs of the 3-D transformation. If moviegoers are compelled to watch the same film in both formats, ticket sales will take off faster than a speeding bullet. They may be even be more powerful than a locomotive, given the success that IMAX has had with its 3-D version of The Polar Express. That film fared only so-so at conventional movie houses but exploded on IMAX, to the point that the giant-screen giant now plans to screen its newfound hit every holiday season.

The Poseidon disappointment comes at an awkward moment, as the company put itself on the block two months ago. After backing another Time Warner dud, V for Vendetta, earlier this year, IMAX has made it a point to reach out to rival studios. It's likely to hook up with Sony (NYSE:SNE) for next summer's no-brainer hit, Spider-Man 3. Let's hope these superheroes come to the rescue, since IMAX already has a record backlog of new screen orders.

Things can only get better if its theatrical relevance continues. The company successfully talked multiplex operators into supersizing some of their screens into the IMAX format. With cinema chains struggling to compete with the proliferation of LCD and plasma home entertainment systems, IMAX makeovers have helped make the film-watching experience more valuable.

Clark Kent, don't be late.

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Longtime Fool contributor Rick Munarriz loves to spot great things early, which is why he's been with The Motley Fool since 1995. He does not own shares in any of the companies in this story. Time Warner is a Motley Fool Stock Advisor pick. The Fool has a disclosure policy. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.