IMAX Announces New Revenue Share Agreement Plan With Chinese Partner
IMAX and its subsidiary, IMAX China Holding, entered into a revenue sharing agreement with Guangzhou JinYi Media that covers 40 new IMAX theaters in China.
Guangzhou JinYi Media is one of China's largest exhibitors that manages at least 1,731 screens across 325 subsidiary and affiliated cinemas with a capacity of more than 262,271 seats across 21 different provinces and four municipalities.
As part of the agreement, the new theaters will be added to JinYi Media's existing projects and already existing cinemas across China. The theaters will be added to a combination of Tier One to Tier Four cities throughout the country at the end of this year.
The majority of the installations will be finished by 2018.
JinYi Media is now the third-largest IMAX partner in China and internationally. The two companies initially entered into an agreement in 2009 for the installation of just four IMAX theaters.
"We are delighted to further expand our partnership with JinYi, one of the largest exhibitors in China. Their sizeable commitment and continued confidence in IMAX to play such an integral part of their complexes is yet another testament to the strength and value of IMAX in China. Together, we will help meet the strong consumer demand for cinema-going in China where IMAX remains an affordable, yet differentiated luxury," said IMAX Corp. CEO, Richard L. Gelfond.
"We have set a target of 1,000 theatres in China. With over 300 theatres open and – including this deal and a 10-theatre deal announced earlier this year – an additional 270 in backlog, we are just beginning to tap China's full potential, which is on track to overtake the US as the largest film market in the world by 2017."
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.