Big-screen giant Imax eyes digital future

By Carolyn Giardina and Paul Bond

LOS ANGELES (Hollywood Reporter) - Imax Corp. is going digital.

The giant of the large-screen format is beginning one of the biggest initiatives in its 40-year history: switching from 70mm film to a digital system of projection.

Next month, the company will roll out the first three digital Imax installations with exhibitor AMC Entertainment -- two in Washington and one in Baltimore. Three more will debut in August in Philadelphia. Imax expects to have digital systems deployed at 50 sites by year's end, with the goal of converting its 296 owned or equipped theaters in 40 countries.

Imax believes that the digital offerings will prompt new installations and more studio films for release in Imax theaters.

"In 2006, we averaged about 35 new theater signings a year. In the last seven months, we signed 173 new theaters," Imax co-chairman and co-CEO Rich Gelfond says. "That's because of the launch of the digital product."

New joint-venture agreements include deals with AMC for 100 systems and Regal Cinemas for 31 systems. The deployment has the potential to change the fare offered in the theaters.

Imax built its business on screening such documentaries as "Space Station" and "Bugs" but in recent years has aimed for such big "tentpole" movies as the Batman and Harry Potter films. It inked a deal this year with DreamWorks Animation that includes Imax distribution of the upcoming "Madagascar: Escape 2 Africa" as well as the studio's first three 3-D titles, starting with "Monsters vs. Aliens" on March 27, 2009, "How to Train Your Dragon" in November 2009 and "Shrek Goes Fourth" in May 2010.

"Madagascar 2," which opens November 7, is scheduled as the first "wide" digital Imax release, on an expected 35 screens.