Imax China Holdings, the country’s biggest widescreen film provider, struck what it described as “the largest deal ever” on Tuesday, to add 150 theatre screens across China in partnership with Wanda Cinema Line, controlled by China’s richest man Wang Jianlin.
The agreement will see Wanda Cinemas’ footprint of Imax theatres expand by 70 per cent to 360, with a majority opening over the next three years, and Imax China’s total backlog of screens to grow by nearly 60 per cent, according to the cinematic-technology provider.
The Shanghai-based arm of Imax Corp, which has its major operations in New York and Toronto, signed the pact with Asia’s largest movie theatre chain despite China’s box office revenue for the first half of the year growing at its slowest rate since 2011.
“This is a landmark development in Imax’s history and a strategic linchpin in our growth strategy, particularly as we’ve seen over time that signings lead to installs, higher box office and ultimately more revenue,” said Richard Gelfond, chief executive of New York-listed Imax.
Since 2013, Imax and its biggest client Wanda have cooperated on a number of Mandarin-language blockbusters, including Man of Tai Chi, and last year’s Mojin: The Lost Legend, the highest-grossing local-language film ever released by Imax.
“We look forward to leveraging this successful [business] model for years to come,” said John Zeng, president of Wanda Cinema Line.