IMAX signs full revenue share agreement with Guangzhou and JinYi Media
IMAX Corp., IMAX China Holding, Inc., and Guangzhou JinYi Media Corp., one of the largest exhibitors in China, announced a full revenue share agreement for 40 new IMAX®theatres. The theatres will be added to new projects as well as existing JinYi cinemas across China and brings the exhibitor’s total IMAX footprint to 60.
The theatres will be added to a combination of Tier One to Tier Four cities throughout China and are expected to be installed at the end of this year through 2020, with a majority to be installed by 2018. The deal represents one of the largest IMAX signings in China.
JinYi Media Corp. is one of the largest exhibition companies in China, with 1,731 screens in 325 subsidiary and affiliated theaters across 21 provinces and four municipalities. The parties first signed an agreement in 2009 for four IMAX theatres. With this deal, JinYi Media becomes the third-largest IMAX partner in China and internationally.
Under the agreement, the exhibitor will bring IMAX to several untapped markets, including the cities of Huaihua (pop. 5 million) located in the province of Hunan, and Deyang (pop. 4 million), located in the province of Sichuan. Guangzhou JinYi Media Corp. is the second full joint venture IMAX partner in China.
“We are delighted to further expand our partnership with JinYi, one of the largest exhibitors in China,” said IMAX Corp. CEO, Richard L. Gelfond. “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.
“We have set a target of 1,000 theatres in China,” Gelfond continued. “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.”
“Driven by the dramatic growth in the Chinese exhibition market, we are embarking on an aggressive expansion of our circuit,” said Mr. Leo Li, CEO Guangzhou JinYi Media Corp. “Mall developers recognize the power of the IMAX brand to attract consumers and with IMAX as an anchor entertainment attraction, we were able to secure locations in our desired complexes.
“The IMAX slate of Hollywood and Chinese blockbuster titles coupled with its powerfully immersive format is beloved by moviegoers in China,” added Li. “IMAX is a key differentiator that we believe will not only strengthen the customer experience but also our business results.”