The previews are over, cell phones have been turned off and the feature film is about to begin. After a horrible start to the year, movie theaters will be hopping for the next three months with a long list of blockbuster films.
Disney (NYSE: DIS) has a lot riding on its summer sequels to Pirates of the Caribbean and Cars after Mars Needs Moms left investors disappointed. Cinemark Holdings (NYSE: CNK) and Regal Entertainment (NYSE: RGC) could also use a summer boost with profits on a slight downslide.
But the two companies that may capitalize most from this summer's films are RealD (NYSE: RLD) and IMAX (NYSE: IMAX) who take a slice of every movie ticket sold for their screens. It's a business model that leverages blockbuster films like Avatar or Tron: Legacy, so this summer could be big.
Both companies are hitting 52-week highs almost daily as investors anticipate each movie's premier. Notable movies over the next two months include:
- Pirates of the Caribbean: On Stranger Tides, May 20
- Super 8, June 10
- Cars 2, June 24
- Transformers 3: Dark of the Moon, July 1
- Harry Potter and the Deathly Hallows: Part II, July 15
Super 8 is the only one of those films that won't be shown in both IMAX and RealD formats. Since it isn't a 3-D film, movie patrons will have to choose between IMAX and standard theaters.
As theater networks grow, RealD and IMAX will take a larger and larger piece of the box office pie. If these movies live up to expectations we should see outstanding earnings from both as a result.
The box office in your living room
3-D for the masses may be taking a step closer to becoming a reality. This morning RealD announced it has completed a license agreement with Samsung on a jointly developed 3-D panel. The partnership was initially announced earlier this year and prototypes were revealed at CES in January. 3-D PC monitors will be launched in early 2012 with 55-inch TVs to follow.
RealD's advantage over IMAX is its potential for offering technology in consumer electronics -- and this is a step in that direction. Users won't have to use expensive active 3-D glasses with this technology, and can instead use passive glasses we're used to at the movie theater.
Keep up on all of our Foolish analysis of IMAX and RealD by clicking here to add them to My Watchlist.
