IMAX Is For Sale

 IMAX, the sole and standalone large format cinema company, is up for sale. It's looking for a suitor in an all-cash deal.

Naturally, AMC Theatres and Cinemark Theatres are possible buyers, but others such as Apple, Sony, and Netflix are also in the mix.

For Apple, the IMAX purchase would be equivalent to a rounding error on its balance sheet and would make a good partner for Apple+.  And let's not leave out Amazon and Disney. What is agreed to is that IMAX would remain an entity unto itself and not be merged into another existing cinema business.

In the first quarter of this year, IMAX reported revenue of $81.4 million with income of $6.1 million. So, although not that large, it has a global, well-recognized brand, which could enhance an existing media brand.

 IMAX would certainly benefit if it diversified beyond Hollywood tentpoles and included local language and alternative concerts, such as screening live performances. 

As one would expect, IMAX stock has risen due to the buy-out speculation, rising to $37.50 (as of this post), up over 11% for the month. 

IMO, IMAX will be sold for a cash deal in 2026.

Will A Republican Save Hollywood

 Hollywood and the greater cinema industry lean heavily Democratic, so wouldn't it be ironic if a Republican saved the film industry in the U.S?

Steve Hilton has a narrow lead in the California gubernatorial primary race

Steve Hilton is the current front-runner in the gubernatorial race in California, and he's a Republican. Hilton has a plan to save Hollywood production and jobs. He has stated that as part of his agenda, there will be a tax credit that would go as high as 60% of the production costs and would never go below 40%. 

Today, the rate sits at 35% with certain restrictions. Under Hilton's program, this would be the most generous film production tax credit in the country.

Additionally, Hilton says he does not want the credit capped (it is currently capped at $750 million per year). Under the Hilton plan, the tax credits could also be used for post-production and above-the-line costs, neither of which is currently permitted.

Hilton announced his film production plan after meeting with members of the Motion Picture Association. 

Other candidates, following Hilton's lead, have now stated they, too, would propose expanding the film tax credit. Democrats Matt Mahan and Tom Steyer quickly jumped on board after Hilton's proposal.

The issue is that film production in Hollywood and in California generally has seen a reduction of more than 50,000 jobs in just the last several years as studios cut back on Hollywood productions, preferring cheaper alternatives. Hilton also proposed a 'Governor's Expediter' role for entertainment shoots, revamp the Callifornia Film Commission, and require that credit applications be adjudicated within 30 days of submission.

The 60% credit would make production in Hollywood very inexpensive, countering the impact of lower costs in other States and overseas. 

Hilton says, "I don't want to be reckless with resources, but if we want to really change behavior, we may have to do something extravagant." He also stated that, depending on its success, the plan would run for a fixed period, probably five years.

"I've been hearing for months about how hard it is to shoot in Los Angeles," said Hilton. "We would have an office run by someone who's just a bulldozer when it comes to bureaucracy and who could just get on the phone to move things along."

Hilton hasn't spoken (nor have any of the other candidates) about AI drastically cutting the cost of movie production and the need for physical shoots.

Hilton currently maintains a narrow lead in the polls (at 19%) over all other primary candidates.

 

Screening 'Live' Concerts at Cinemas

 

Swift's Life of a Showgirl

Screening live concerts at cinemas is a great idea and opens a new chapter for cinemas to increase profits. In previous experimental programs with the Met Opera or other notable content, the screening of live concerts has never really been addressed.

Live concerts allow fans to enjoy seeing their favorite artists perform without the high cost of attending in person and the inconvenience of getting to and from the venue.

Being able to view a concert in real time on a large screen, with comfortable seating and great sound, at a fraction of the cost of attending in person, is very appealing.

AMC Theatres has just introduced 'Arena One' to do just that. Tickets range from $40 to $75, depending on the artist and market. So, even at a 50% payment of gross admissions for screening the concert, the cinema's profit margin is high, and with the added benefit of concession sales.

This concept is a great way to utilize cinema venues and attract a demographic that will drive repeat business and additional attendance for 'live' concerts and movies.

This started with Taylor Swift bypassing the Hollywood studios and going directly to AMC to screen her 'Life of a Showgirl' concert.

The Chief AI Officer

 

Former YouTube exec Kathleen Grace will be Lionsgate's AI honcho

Most large and mid-sized companies are going to add a new position to their executive ranks: the Chief AI Officer. A person devoted to overseeing the firm's use and adoption of AI.

The Trump Administration has an AI Chief, David Sacks, holding the rank of Senior Advisor to the President. Lionsgate Studios is the first studio to appoint a CAIO, hiring Kathleen Grace, a former YouTube executive, to oversee Lionsgate's AI development; others will follow. 

The job of the CAIO is to build and implement an AI strategy to alter existing production, marketing, distribution, and administrative workflows. 

We're in the early stages of AI development and use, and it will vary with each business. The vision being that AI will support the workflow processes to become more efficient and less costly. And in some cases, replace them. 

New technologies have always shaped society and how we live and function. The Industrial Revolution of the early 1900s, the introduction of railroads, the automobile, electricity, flight, the PC - the list goes on. AI is no different. It will happen, be embraced, and have a significant impact on humanity.

AI forces us to think about what we're doing, no matter what it is, and improve upon it. Consider AI to be your co-partner and collaborator, expanding your capabilities.  

How AI Will Impact Filmmaking - Just Look at India

 

This film used AI exclusively in production

Without unions and film regulations and restrictions, India has become the most consequential experimenter of AI filmmaking - and its endeavors may become the future of the cinema industry.

The Indian filmmaking community has embraced AI. Every stage of the movie-making process - writing, pre-and post-production, special effects, etc. - is being reshaped by AI, and it has become an indispensable collaborator. 

The contrast between Hollywood and the Indian adoption of AI is profound. All of the U.S. film industry unions and guilds have fought to install guardrails around the use of AI, but as these internal battles continue, India and, to some extent, China have moved on.

In India, there are no industry unions or guilds, and no employment protection regarding the use of AI. The result is that AI is now a part of every facet of Indian filmmaking. For example, a new sci-fi series, called 'Warlord', will be created entirely using AI tools. It's estimated that over 80% of Indian films are using AI, and there is no backlash from audiences; it's transparent to them.

Ideally, the future of filmmaking will be a hybrid. Actor and performances will be shot in traditional ways, but the use of AI for site shooting, scriptwriting, special effects, created environments, etc., that require huge budgets will be AI-driven. Right now, in India, a film that would have cost $200 million to produce can be made for $40 million.