IMAX Corporation Sees India Entering High-Growth Phase, Plans Major Expansion by 2025

MEDIA-AND-ENTERTAINMENT
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AuthorAkshat Lakshkar|Published at:
IMAX Corporation Sees India Entering High-Growth Phase, Plans Major Expansion by 2025
Overview

IMAX Corporation anticipates a high-growth period in India over the next two to three years, with significant momentum expected through 2025. The company plans to increase its slate and national footprint amidst rising demand for premium moviegoing experiences. Despite being IMAX’s seventh-largest market, India remains notably underpenetrated, according to a senior official. IMAX's footprint has expanded by nearly 60% since 2020, reaching what is described as a "multiplier effect" stage for growth. Year-to-date box office revenue stands at $21.9 million, with the September quarter contributing over $9 million, marking it as the second-best quarter ever in India. Same-store locations saw a striking 78% year-on-year growth in local currency by October. The company is also deepening collaborations with Indian filmmakers and expects substantial growth from local-language content.

IMAX Corporation is projecting a significant high-growth phase in India for the upcoming two to three years, with momentum building towards 2025. This expansion is fueled by plans to release a larger movie slate and broaden the company's national presence, driven by increasing consumer demand for premium moviegoing experiences. According to Giovanni Dolci, Chief Commercial Officer at IMAX Corporation, India, despite being the seventh-largest market globally for IMAX, is still considerably underpenetrated. He noted that IMAX has nearly doubled its footprint by almost 60% since 2020, indicating that the company is entering a "multiplier effect" phase where growth accelerates due to reaching critical scale.
IMAX's year-to-date box office revenue in India has reached $21.9 million, supported by a diverse mix of Hollywood and local-language films. The September quarter alone generated just over $9 million, making it the second-best quarter for IMAX in India, following Q3 2023 ($9.5 million). Audience appetite remains robust, with same-store IMAX box office in India up 78% in local currency by the end of October, signaling strong demand.
The company's growth is further supported by a varied content slate, including major Hollywood releases, local Indian films, and increasingly popular anime. Local-language content now forms a significant portion of IMAX's global box office, contributing one-third in Q3, a trend expected to strengthen in India. IMAX is actively enhancing collaborations with Indian filmmakers, highlighted by upcoming projects like S. S. Rajamouli's film, which will be shot using IMAX-certified cameras.
Dolci sees substantial room for expansion, aiming for at least 150 IMAX theaters in India, up from the current 34, with nine more under contract for installation, many expected in 2026. Expansion is also targeting non-metro markets where audiences currently travel long distances for IMAX experiences. IMAX differentiates its offering through its unique content creation process, providing a distinct viewing experience that goes beyond just superior projection and sound.
Impact
This news indicates significant positive growth potential for the Indian entertainment and cinema sector. It suggests increased investment in premium cinematic experiences, benefiting Indian exhibitors like PVR INOX, content creators, and potentially driving higher consumer spending in this segment. The expansion into non-metro areas could also boost regional economies.
Rating: 7/10
Definitions

  • Underpenetrated: A market where the number of services or products available is low compared to its potential customer base or economic capacity. In this context, it means there are fewer IMAX theaters than the market could support.
  • Multiplier effect: A situation where an initial increase in investment or activity leads to a proportionally larger increase in overall economic output or growth.
  • Box office: The total revenue generated from ticket sales at movie theaters.
  • YTD (Year-to-date): Refers to the period from the beginning of the current calendar year up to a specific point in time.
  • Slate: The list of movies or films that a production company or distributor plans to release over a specific period.
  • Same-store locations: A performance metric used to compare the revenue or growth of a set of retail locations (in this case, cinemas) that have been operating for a comparable period, excluding new openings or closures.
  • Local-language content: Films produced and released in regional languages of India (e.g., Hindi, Tamil, Telugu, Bengali) rather than solely in English.
  • IMAX-certified cameras: High-end cameras manufactured by or for IMAX Corporation, designed to meet their strict specifications for image quality, resolution, and aspect ratio.
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