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Rightful IMAX is taking a major step to increase its footprint.
In the world's second largest movie market and that of course is China it's also expanding in the South Korea -- -- guilt on the -- CEO is here now.
With this news he thought partnership in some of the regions but.
Why is this something that should make us sit out take notice and considering your stock to be in the portfolio.
What -- to to your revenues into your numbers overall.
Well the -- story if you go longer term was is all about network expansion.
So you take a company like HBO which had a fixed cost of content and over the years it's just you grew its subscriber base and that's what.
-- a recurring revenues -- recurring earnings and IMAX is a somewhere I think we have a fixed number of movies.
More -- -- -- fixed cost of contents and the more theaters you open the big you revenue base of the bigger your earnings.
Potential so we've been growing by somewhere between hundred -- 130 theaters a year.
The last number of years so I think what investors look for -- -- is evidence that that growth cycle is gonna continue.
I think what we've signed a major agreement like we did for these 35 theaters with CJ CGB.
It helps investors get comfortable that the growth cycle continues.
Well let's talk about a 35 theaters with thirty of them are in China.
China loves IMAX screens I remember when avatar had come out.
People were selling tickets they're scalping them for some ninety dollars a piece they love that experience and have this growing middle class for that can pay the ticket price.
Are you label their pricing power in there -- X that.
The guys -- -- scalping tickets.
It's yeah I mean the average ticket price in China depending on the city is somewhere.
Up front -- 1513 and sixteen dollars and that's consistent with what ticket prices aren't high end markets.
Throughout the world and I think what's going on in China.
Is that -- affordable luxuries is something that people willing to pay up -- they may not have the money to go out by a Ferrari or go to some.
Super fancy resort but if it's a few extra dollars equivalent in R&B.
And you get something special something you couldn't otherwise get that hits the sweet spot -- that consumer.
What's interesting to me is that you've also gotten -- so that there's going to be Chinese content.
Last year ten Chinese feature -- so they're not just looking at.
-- but the Lone -- something that's not actually been doing well in other countries but that brings me to this question.
These summer so called blockbusters have done anything but bus walk slightly we have what happened this weekend with Pacific rim Lone Ranger was a bust out.
I think White House down didn't do well.
You knew this was coming coming you could probably tell right.
Well I don't know I mean again I think it's really a complicated answer because.
Part of it is remember the box office has become so global now we're two thirds is international 13 is the -- -- so in some cases you right.
Films haven't performed but in some cases they found their audiences overseas.
And I'm not the message he will have to go through one or.
1 thing about Pacific -- and I want -- -- -- was is that although that the film itself didn't you know meet the estimates when they green let the film.
How we get it almost 1% of the box office in North America just an IMAX so for us specific -- was actually very a very good movie.
See you have to kind of segment it out on a much more.
-- but I think this is a year that sequels you know did better than non sequels and original movies it was harder to -- -- -- Part of you the same price took that to the studios can you come up with some better stuff what are you excited about that's on the docket coming.
I mean lots of things for this year ending Hunger Games is really exciting -- three.
Part two -- this cartel here you're you're technically ahead.
Obviously felt good release him by Sony that we're very excited about that's coming out.
Relatively soon I think the next installment of Iron Man of the Honda will be very good I think you look into next year and you look at.
-- or 2015.
You look at Star -- you look at the next avengers I -- I think there are a lot of good things coming out but it.
It's a long summer I think one thing that's happening is still more blockbusters costs and higher budgets -- they're crowding each other out what what.
Makes it what makes you special on -- really quickly on this is you were one of the first companies to look at China years ago and say there's opportunity here tonight -- the first screen you convince them.
To allow you to put up.
I think it was actually in 2002.
And it was in a science center.
At first we start playing documents environment that kids going in and reaching out in 3-D and is really exciting to see -- We chose China originally because it was kind of politically neutral in terms of the kind of content that -- provided.
So it was a time and a place in China.
Where he didn't have to be controversial bringing in western contact with a IMAX and I think you know the consumers just have learned to love I'm actually built a brand that.
While the stock is up about 15%.
Year to date it looks very good at this point.
The highest 28 bucks are very close to -- the low was eighteen so you really come up off before the year rich.
Thank you so much.
Vikings -- rich don't want -- CEO we got some --
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