IMAX's (Nasdaq: IMAX) perpetual push overseas isn't slowing.
The company behind the gargantuan multiplex digital projectors and hair-raising sound systems is inking a new deal with leading European exhibitor ODEON, tacking on four new screens in the United Kingdom.
The installations will come quickly, as all four IMAX experiences will be up in time for Time Warner's (NYSE: TWX) Harry Potter and the Deathly Hallows -- the first of two parts -- that hits theaters worldwide come mid-November.
J.K. Rowling's franchise is obviously a big hit in her home country, and IMAX will be hopping on the flying Quidditch broomstick for the ride.
This has been a big year of validation for IMAX. The company has now signed deals for 134 new installations worldwide this year, compared to a mere 35 screens for all of last year. The success of News Corp.'s (Nasdaq: NWSA) defining Avatar has cemented IMAX's value to multiplex operators who are looking to milk more revenue from their patrons. Those $7 tubs of popcorn can only go so far.
There are challenges, naturally. RealD (NYSE: RLD) has become the leading provider of 3-D conversions -- with a solid IPO to boot -- by giving exhibitors a compelling value proposition with little in upfront costs.
Home theaters are also growing more elaborate, with selection widening quickly as a result of Netflix's (Nasdaq: NFLX) digital streaming strategy. Best Buy (NYSE: BBY) continues to promote new high-def 3-D television to couch potatoes coming in for an upgrade.
These trends may seem to be hurting IMAX, but they are actually helping. Movie theater operators know that they need to raise their game to remain competitive with the living room, and that's where IMAX steps in as an obvious savior. Hollywood probably wouldn't have had a record year in box office receipts in 2009 if it wasn't for IMAX.
The world clearly has noticed. IMAX issues a press release every few days, detailing a new overseas expansion deal. The larger the base of licensed screens, the more attractive the model, medium, and fundamentals become.
If this isn't hitting you now, give it a few days. Maybe IMAX's next press release will drive the point home.
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