Total new theaters 29 20 39 36
Upgrades of IMAX theater systems 1 - 8 (6) 10
Total theater installations 30 20 47 46
(1) Includes one signing which replaced a theater under an existing arrangement
(2) Includes two signings which replaced theaters under an existing arrangement
(3) Includes five signings for the installation of laser-based digital systems in
existing theater locations.
(4) Includes upgrades to xenon-based digital systems under short-term operating
lease arrangements (3 signings).
(5) Includes seven signings for the installation of laser-based digital systems
in existing theater locations.
(6) Includes upgrades to xenon-based digital systems under short-term operating
lease arrangements (5 signings, 2 installations).
The Company estimates that it will install approximately 110 to 125 new theater systems (excluding digital upgrades) for the full year of 2013. Unlike in previous years in which the Company's installation estimates were limited to scheduled installations from backlog, the Company now includes in its estimates not only scheduled systems from backlog, but also the Company's estimate of installations from arrangements that will sign and install in the same calendar year. The Company cautions, however, that theater system installations slip from period to period in the course of the Company's business, usually for reasons beyond its control. 51
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Films: Digital Re-Mastering (IMAX DMR) and other film revenue
Digital Re-Mastering (IMAX DMR)
In 2002, the Company developed a proprietary technology to digitally re-master
Hollywoodfilms into IMAXdigital cinema package format or 15/70-format film for exhibition in IMAXtheaters at a modest cost that is incurred by the Company. This system, known as IMAX DMR, digitally enhances the image resolution of motion picture films for projection on IMAXscreens while maintaining or enhancing the visual clarity and sound quality to levels for which The IMAXExperience is known. This technology enabled the IMAXtheater network to release Hollywoodfilms simultaneously with their broader domestic release. The development of this technology was critical in helping the Company execute its strategy of expanding its commercial theater network by establishing IMAXtheaters as a key, premium distribution platform for Hollywoodfilms. In a typical IMAX DMR film arrangement, the Company will receive a percentage of net box-office receipts of any commercial films released in the IMAXnetwork, which is generally 10-15%, from a film studio for the conversion of the film to the IMAX DMR format and access to its premium distribution platform.