Encore presentations are typically ho-hum affairs at the local multiplex, but not this one. IMAX (Nasdaq: IMAX) and News Corp.'s (NYSE: NWS) 20th Century Fox are bringing back the highest-grossing film of all time for a limited two-week engagement next month. That's right. ... It's Avatar.
This spectacle has a few things working in its favor.
- It will only be released on IMAX 3D.
- Screenings will feature an additional eight minutes of footage.
- Many moviegoers still associate the film with IMAX.
IMAX can use the boost. Its shares have lost 40% of their value since peaking at $21.30 three months ago.
A larger installed base of theaters and steady trickle of cinematic releases have helped. Roughly $115 million in tickets were sold for IMAX screenings during the second quarter, 37% ahead of last year. However, it's a far cry from the Avatar-spiked $231 million in IMAX box-office receipts that were collected during the first three months of the year.
Exhibitors know that nothing has come even remotely close to the record-breaking success of Avatar, but there is at least one theory why IMAX crowds have been dwindling.
Roth Capital analyst Richard Ingrassia argues that the theater-experience-on-steroids that IMAX offers caters mostly to a male audience. It hasn't helped that the past few IMAX releases have skewed toward teen girls, with the latest Twilight installment, and young families, with Disney's (NYSE: DIS) Toy Story 3 and DreamWorks Animation's (NYSE: DWA) Shrek Forever After.
If that's the case, vindication may come as early as next weekend, when Time Warner's (NYSE: TWX) adrenaline-pumping Inception opens.
Either way, it seemed inevitable that Avatar would come back to IMAX like a star jock returning to coach at his high school alma mater once the glory days are done. If successful, it could be a compelling card for IMAX to play the next time there's a programming void on its release calendar.
Let's hope that this is more Na'vi than naive.
Are you willing to pay an IMAX premium to see Avatar again? Please share your perspective in the comments box below.
