michelle-policies paper IMAX

michelle-policies paper IMAX - IMAX Larger Than Life...

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IMAX: Larger Than Life Business Policies Michelle Dockery April 14, 2012
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Executive Summary Purpose Richard Gelfond and Bradley Wechsler , the co-CEOs of IMAX Corporation , bought IMAX along with Wasserstein Perella Partners from the original owners in 1994 for $80 million . They also took the company public in the same year . The two films , NASCAR and The Polar Express , were symbolic of the direction in which Gelfond and Wechsler had wanted to achieve . The company’s main source of revenue came from long-term system lease and maintenance agreements , film production and distribution , and theater operations . Included in the lease , IMAX advised customers on theater design , supervised the installation of the system , trained theater staff and maintained the system . The IMAX theaters were designed so that projected images stretched up to the peripheral vision of the viewer . The films were projected on to the screens using IMAX- designed projectors that contained special features such as , a higher shutter speed , rolling loop motion and vacuum to hold the film in the lens . The images produced by the IMAX projection system were sharper and brighter than those found in conventional movie theaters . Findings The Polar Express was the first time a Hollywood movie that would be released simultaneously in commercial multiplexes and IMAX theaters . It was a huge hit with $45 million in revenues just in the IMAX format . IMAX spent almost five percent of its sales revenue on research and development in 2007 . Fifty of its three-hundred and eighteen employees were involved in this R&D . As a result , IMAX had successfully created 3D cameras and projection systems to produce realistic 3D images . The IMAX 3D projectors could also project 2D images as well . The celebrities and marketing involved in producing a film contribute to the major cost of movie-making . IMAX however never had to market aggressively since an increasing number of Hollywood movies started being released in IMAX format , thus allowing IMAX to ride on the “coat-tails” of marketing campaigns launched by the studios . Problem IMAX currently faces problems that could potentially demolish its reputation and cause the company financial problems once again. Such problems include (1) a shortage in potential IMAX theaters , (2) the newly redesigned “IMAX experience” theaters that are not true to size , and (3) technology advancement . Recommendation IMAX needs to listen to what the people want Considering the number of complaints IMAX has received about its new “IMAX Experience” screens , the company should go back to distributing the traditional IMAX format. IMAX Corp. has never been one to do a lot of advertising, frankly because they didn’t need to . But with all the advances in technology , bringing forth tougher competition , IMAX needs to “get down
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and dirty” to say the least .
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