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Imax CEO Rich Gelfond explains how the company will benefit by striking a 10-year patent deal with Kodak for laser-projection technology.
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-- IMAX movies.
In your neighborhood you know big theater and not up a web sites are Eastman Kodak tax.
But I was thinking is licensing a portion of its patents now -- IMAX.
Idea -- the struggling photo icon hopes will keep the company fluid -- works through its turnaround let's find out.
What -- and that stands to -- from the deal joining us is Richard gal on the CEO of I expect a great idea -- -- today so we know that you're acquire in this digital technology from Kodak is that really what it boils down to.
Yeah it is actually Kodak has a prototype of this laser based.
Digital projector and it throws off much -- Y eighty and higher contrast than any projection system that exists today.
So we had a problem we've converted to digital over the last several years but the very biggest screens like the one you're talking about on the west side here in New York.
Couldn't be converted -- you couldn't produce enough light.
Under this technology.
We can like about a 150 of the largest screens in the world which we couldn't do before.
What are you talking about when it comes to.
Expanding and He does does that enable you to spend too much to much fits the of what -- about 500.
IMAX -- someone that name of -- now globally.
We are you looking to expand just in the -- in China and that or you in the United States is -- still plenty of room to expand here because of new technology.
Slow because of this technology we have a 150 theaters that we could never convert -- because we couldn't wipe those screen so we could take existing ones.
And Camaro convertible over and that's about a 200 million dollar market opportunity for us in around thirteen and fourteen we hope to product ties this and thirteen.
In addition though this is such.
Leap forward in fact we had a Hollywood a list filmmaker do some of the diligence for us and He thought this was just different than anything -- ever seen in the digital world.
-- eventually.
We hope to keep IMAX on top whatever technologies threaten us.
By using this in in new ways and we got rights through this deal.
To about 101000 patents the whole Kodak portfolio in the cinema space so -- mind that portfolio also and see what else is interest in.
Now there is a firm price reported by the Wall Street -- in the tens of millions of dollars are paying a pretty penny -- patents in this technology.
Can you tell less nailed down how much you're paying for these patents and how you feel about which -- paying for it -- Under the agreement we can't really say.
But it you know I think in general that those those references -- are correct.
We think we got a very good price -- -- the rights.
You know all the patents in the cinema space.
There's already royalties you'll have to pay -- outlook including royalties.
Knowing that there's a prototype out there already given the 200 million dollar revenue opportunity in the short term there's another point to this too which is -- is a single.
Projection system kind of for 3-D commodity and it -- theaters and there's a number of players in that field.
We are not gonna enter that field ourselves but this technology.
Allow someone to enter that field and I think we'll sub license that over time and that'll be another revenue opportunity for us -- Think about price for ticket because I want to go Cecil the movie drive last night.
But then I had to give blood before going to the movies -- go to afford it.
I credits here in New York but ticket prices are going up and up and up and if you wanna see 3-D and IMAX and -- avatar came out.
Oh handle it right I didn't pay close to thirty dollars a ticket here in New York yes I mean what you do what you do and about.
I kind of I kind of agree with you in this economic time I think tickets especially family tickets are priced too high.
We can't do much about it because we don't set the prices we don't on the theaters are exhibition partners do so what we can do about it is given data and tell -- we agree with your position -- I think for premium experience cannot.
-- marketing it to everybody so little always cause a little bit more and that's where we put ourselves but I think you know we do have to be mindful to the consumer.
Rich what are your thoughts sign where this puts Kodak obviously.
This is the company are doing the deal with but being in the industry you're an expert on their technology and their challenges being cash strapped in trying to transition into just a -- -- -- right so.
Do you think it's just gonna help them less satisfied -- shareholders improve their their cast it positioned.
Well I think sure it'll help them with their cash position -- -- -- -- long term I'm not familiar enough with their financial position.
But we've been doing business with them for 45 years because remember that while we were a film company they were big maker of film and I think if you listen -- Kodak what they say is.
They've been in the printing business forever they've just printed film and now they're pretty digital none of that makes some intuitive sense to me but I'm far from an expert on them well thanks for addressing it in any case.
Good to have your check okay thank you it's great to be here.
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