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IMAX CEO Rich Gelfond talks about the company’s growth and how technology is improving the movie experience.
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All right -- about the -- coming up for this weekend around the Austin is they are officially calling it the Oscars.
I -- should be feeling a nice -- from its big profits on the big screen.
They -- probably as causes an IMAX film looks nominated for best film and seven other awards so by the way.
And the giant screen movie company reporting a more than 55%.
Jump in gross box office results for films.
In its fourth quarter but who else to speak to but rich gulf on IMAX CEO join me now from.
The center of the universe this weekend Los Angeles -- thank you for joining us.
Congratulations.
It and you know how -- has been performing what do you put it down to.
I think it's it's really our business model.
IMAX really needed to get to a critical mass sort of network's size and we're about 600 commercial theaters right now.
-- once we get to that size our cost of contents is kind of flat.
But -- really realize the benefits of scale and that's what happened in the fourth quarter and that's what happened in the year end.
As we grow more hopefully that's what will happen in the future.
But causes great to have these big bought classes and it -- is in the -- bit and so on net com.
Do you expect -- to continue to have these big pick -- -- just.
Although we have a great slate for 2013.
We've Iron Man three we have start track we have the next installment of the hottest -- Hunger Games we have.
Man of steel the new Superman movie so I think you know kind of what you saw in 2012.
With even a larger network in 2013.
Should hopefully propel our financial results well -- up box office numbers up 55% in the las -- -- Gannett.
Even get close to that and -- -- current -- Well it you know and I guess there's a couple secrets that there's 31 has picked the right movies and we've done a good job of that over the all of over the last year.
-- -- -- Increasingly globalizing.
Our view towards movies so.
Right now we have something like 78 movies playing around the world so in China we have a Chinese movie.
In Europe we have different movies that are playing any last.
We have die hard here in the US so -- the combination of all of that and that the third thing is the network is growing and it's 125%.
Compound growth rate so you show.
Those strong movies on an increasing network and you get financial leverage and get EPS and earnings and cash -- And it's interesting at a time when consumers are starting to feel that -- a little bit.
That epithet to pay a little bit more to enjoy the IMAX experience.
Well you know the way we think of it is not like an affordable luxury.
So then we might cut back on going on an extravagant vacation or an expensive restaurant third for.
Three -- four dollars more you can really feel this sense of getting away this sense of being transported and that's what I'm actually -- -- it seems to be.
Tapping into this -- feeling.
I mean -- about the technology is that changing of what impact does that have on mute.
With.
Well the technology it is always a borrowing.
We're really an end to end solution really focused on the very high and and one of the things that's changing -- how our cameras are used and you're gonna see more films that are filmed in part with -- IMAX cameras.
Or to our unique aspect ratio so going to this year and Star Trek.
Every exterior scene outside of the enterprise is to -- what IMAX cameras and JJ Abrams is really gonna -- shell and often a phenomenal way.
In Hunger Games that's coming out this year every scene that shot in the arena is -- -- the IMAX cameras and oblivion.
Is gonna come out a week earlier and against shock to the specific IMAX ratio so that's one type of technology.
The other type is we're improving our digital technology and by going to a laser base so instead of xenon involves -- -- -- laser based in it in a few years especially.
For the very large screens and that'll create extra brightness extra contrast and even.
Take the difference we can IMAX in today's experience to a new level.
Toy even -- level -- seem like every movie it was coming out was 3-D that may be maybe that's kind of dropped off a little bit I mean -- where do you see it going into the future.
What we've always been a little bit more cautious on 3-D.
Than many people on the reason is we started doing it twenty years ago and so we realize it was about the movie not the dimension as you know better movies.
Do better I think in some markets particularly the international ones 3-D add additional value a ticket price premium.
And they count more in the US 3-D was about 80% of the box office now it's more thirty to 40% of the box office and my guess is it's gonna level here so I think.
3-D is here to stay for the right movie it's really gonna make a difference.
But I don't think it'll be ubiquitous what's the next level up from 3-D what's out what's into the future that you could perhaps envision.
Well I think just better.
Better -- clearer images and better sound systems.
You know some people of -- what's called Ford.
I think they have a place in the market I'm not sure that's what we're gonna -- an IMAX.
-- very technically.
Up proficient very focused on the directors.
Focus on the experience I think we'll just see the way the world evolves and try to do more of what people really life.
I don't know whether you get the -- go to the movies cost you pretty -- -- -- if you like for best picture up for the Oscar this weekend.
I -- -- though I thought it was really unique that voters really -- I thought it was really suspenseful.
But there's so many good movies I could think of for a five of them if they -- they be fully deserving and you know like you will Citi.
You also diplomatic.
Thank you so much rich scale -- IMAX CEO continued success he we appreciate you joining us today thank you.
Thank you so much our.
