IMAX films benefit from enhancements made by individual filmmakers exclusively
for the IMAX release, and filmmakers and studios have increasingly sought
IMAX-specific enhancements to generate interest in and excitement for their
films. Such enhancements include shooting selected scenes with IMAX cameras to
increase the audience's immersion in the film, taking advantage of the unique
dimensions of the IMAX screen by shooting the film in a larger aspect ratio and
early release windows exclusively in IMAX. In May 2013, Star Trek Into Darkness:
An IMAX 3D Experience was featured with select sequences shot with IMAX cameras,
and in November 2013, The Hunger Games: Catching Fire: The IMAX Experience, will
also be released which will feature select sequences shot with IMAX cameras.
Several recent movies, including Skyfall: TheIMAX Experience in 2012 and
Oblivion: The IMAX Experience in 2013 have featured footage taking advantage of
the larger projected IMAX aspect ratio.
The original soundtrack of a film to be released to the IMAX network is
re-mastered for the IMAX five or six-channel digital sound systems for the IMAX
DMR release. Unlike the soundtracks played in conventional theaters, IMAX
re-mastered soundtracks are uncompressed and full fidelity. IMAX sound systems
use proprietary loudspeaker systems and proprietary surround sound
configurations that ensure every theater seat is in a good listening position.
The Company believes that its international expansion is an important driver of
future growth for the Company. In fact, during the six months ended June 30,
2013, 53.4% of the Company's gross box-office from IMAX DMR films was generated
in international markets, as compared to 51.8% in the six months ended June 30,
2012. To support growth in international markets, the Company has sought to
bolster its international film strategy, supplementing the Company's film slate
of Hollywood DMR titles with appealing local IMAX DMR releases in select
markets. During 2012, five local-language IMAX DMR films were released,
including four in China and one in France. For 2013, the Company has announced
the release of seven local language IMAX DMR films, including three in China and
one in each of Japan, Russia, France, and India. The Company expects to announce
additional local language IMAX DMR films to be released to the IMAX network in
2013 and beyond.