Regal Entertainment Group will add 16-25 new IMAX theaters in the U.S. by the end of 2012 as the result of an expansion of the 2008 joint venture agreement between the two companies announced today (Friday, Oct. 1).
The expansion will be in addition to the 39 IMAX joint venture theatres to which Regal committed, 34 of which are in currently in operation, bringing the total to 77. Regal also plans to upgrade eight of its existing film-based IMAX theatres with IMAX’s digital projection technology.
The deal also increases the length of the joint venture to 10 years from the previous term of seven years, as well as an adjusted allocation of costs to help defray Regal’s operating expenses for all of its new and existing joint venture IMAX theatres.
Markets targeted for the new IMAX theaters include Albuquerque, NM, Eugene, OR, Charlottesville, VA and Atlanta, GA.
“IMAX theatres deliver an immersive presentation of unparalleled sound and image quality that command a premium price from consumers, and we look forward to bringing that premium experience to more Regal audiences across the country,” said Amy Miles, CEO, Regal Entertainment.
“This agreement represents a potential 64% increase in our existing JV theatre commitment with Regal, paving the way for more consumers to have The IMAX Experience in new domestic markets,” said Richard L. Gelfond, CEO, IMAX Corporation. “…the combination of IMAX and Regal creates premium movie going experiences that Regal movie-goers crave, and as result, yields substantial returns on investment to our joint venture.”
With today’s announcement, IMAX has announced at least 198 theatre systems signings year-to-date, which compares to 35 system signings in all of 2009 and represents a new record for the most signings in a single year.
Included among the terms of the amended agreement is an increase in the length of the joint venture arrangement for all Regal IMAX theatres — to 10 years from the previous term of seven years. The deal also includes an adjusted allocation of costs to help defray Regal’s operating expenses for all of its new and existing joint venture IMAX theatres.
— By Scott Hettrick