It's not only AMC making a big bet on IMAX
The deal may not have the visceral wallop of the 100 IMAX screens that AMC is installing domestically over the next three years, but that pact is a joint venture. RACIMEC will team up foreign exhibitors to bankroll the IMAX expansion on their own dime. In short, it's more fiscal gravy for IMAX.
RACIMEC has been an IMAX customer on a much smaller scale since 2005. That means that the deal from a satisfied client helps validate the concept as a way to attract moviegoers willing to pay a premium for enhanced film-viewing experiences.
This week's announcement is the biggest international deal in the company's history. Couple that with December's landmark agreement with AMC, and you have a company that just landed the two biggest deals in its 40-year history over the span of just four months.
It gets better. Because the costs of translating Hollywood epics into higher-grade IMAX film is fixed, a greater number of screens is sweet news for IMAX, exhibitors, and especially movie studios Time Warner
IMAX's push for digital projection systems is even sweeter, given the lack of reel printing costs and inventory-free distribution.
The future keeps coming up bright and brighter for IMAX. Whether we're talking about chains such as AMC, Regal
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IMAX was recommended three summers ago to Motley Fool Rule Breakers newsletter subscribers. No, it hasn't gone well, and you can read the original recommendation and have access to all of the growth stock picks with a free trial subscription. Thankfully, the average pick has beaten the market. Time Warner and DreamWorks Animation are Motley Fool Stock Advisor picks.
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 stocks in this story except for DreamWorks Animation. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy, and it looks smoking hot on one of those eight-story IMAX screens.