9B15M028 1 IMAX: EXPANSION IN BRIC ECONOMIES (REVISED) Dwarka Chakravarty wrote this case under the supervision of Professor Paul W. Beamish solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. This publication may not be transmitted, photocopied, digitized or otherwise reproduced in any form or by any means without the permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e)
[email protected]; www.iveycases.com. Copyright © 2015, Richard Ivey School of Business Foundation Version: 2016-08-26 In September 2013, Richard Gelfond, chief executive officer of IMAX Corporation (IMAX), declared that the route to becoming a billion-dollar company lay in growth markets outside of North America.2 This was no “blue sky envisioning,” but a pragmatic view grounded in facts. These included competition from U.S. exhibitors offering an “IMAX-like” experience, and a flat five year box office trend in North America versus double digit growth in Asia Pacific and Latin America. In 2013, for the first time in four decades, IMAX aggregate revenue from 56 countries outside of the United States and Canada ($151 million,3 10 per cent growth from 2012) exceeded North American revenues ($137 million, 6.5 per cent decline from 2012).