As bad as this weekend's disappointing opening was for Time Warner's (NYSE:TWX) Poseidon, it could have been even worse. After writing about how the loose adaptation of 1972's The Poseidon Adventurewould hurt both Time Warner and IMAX (NASDAQ:IMAX), I got some corporate talking points from the IMAX camp defending the disaster film's run on the gargantuan IMAX format.
Of the $20.3 million in ticket sales the flick took in over the weekend, it would have generated just $18.9 million without the $1.4 million it generated at the 62 IMAX theaters screening the movie. That may not seem like much, but it works out to just 2% of the screens that were showing the film generating 7% of the total box office take.
One can argue that IMAX theaters tend to be a little larger and that IMAX operators charge a premium on film tickets, but it's still a respectable showing for a company with a film that reviewers have dissed. In terms of live action, 7% is the largest opening weekend cut that IMAX has generated since it began remastering films to show first-run releases on its projector system.
Still, at the end of the day, Poseidon is likely to be a disappointment for IMAX. With so many blockbusters due out in the coming weeks, interest in seeing the seafaring film is likely to wane no matter how powerful the viewing experience may seem. IMAX should fare significantly better when Superman Returns hits IMAX on June 30 with some 3-D segments that will be exclusive to IMAX.
IMAX, recommended last year to Motley Fool Rule Breakers newsletter subscribers, has been quick to transform animated releases into 3-D films on its large screens. The Ant Bully, Open Season, and Happy Feet will all get the same treatment later this year that worked so well on The Polar Express.
Box-office success is important for IMAX, because the bulk of its revenue is coming from new installations. Theater operators see the big per-screen numbers that IMAX generates and the great distances that celluloid buffs are willing to travel to catch a fresh Hollywood release on IMAX, and it's an easy sell. Last week, it announced a deal with a multiplex in Louisiana that was rushing to have an installation completed by next month so the exhibitor would be able to screen Time Warner's return to the Superman series.
Speaking of easy sells, IMAX has also been on the "seeking strategic alternatives" block since March. Continued success may bring out a larger pool of suitors willing to pay higher prices to pick up this film-house savior. Something's got to give -- traditional movie chains such as AMC, Carmike (NASDAQ:CKEC), and Regal (NYSE:RGC) have suffered attendance dips for three straight years. Whether the solution is to win them back with IMAX or to embrace digital projectors to lower their overhead, it's an industry begging for change before it fades to black -- or red.
Time Warner is a Motley Fool Stock Advisor recommendation.
Longtime Fool contributor Rick Munarriz loves to spot great things early. It's why he's been with The Motley Fool since 1995. He does not own shares in any of the companies in this story. The Fool has a disclosure policy. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.
