IMAX Is Looking For Harry Potter Magic

NY Post - December 19, 2003

STEPHEN LYNCH

Imax Corp. is betting that "Harry Potter" can help it conjure a comeback.

The third film in the boy wizard series, "Harry Potter and the Prisoner of Azkaban," will open on some Imax screens at the same time it hits regular theaters in June.

It is the second simultaneous opening, after "The Matrix Revolutions," for the recovering big-screen chain.

High debts and declining interest in Imax's core science and spectacle films hurt the company a few years ago. In 2001, it laid off workers, restructured its operations and considered buyout offers.

Imax had success with a large-screen version of "Star Wars: Episode 1 - Attack of the Clones," which was shown six months after its opening date, but expects to earn even more money with simultaneous releases.

"Matrix Revolutions" earned $3 million on 48 Imax screens in its first five days in theaters.

Movie studios and Imax benefit from the $2.50 or higher premium they put on large-screen ticket sales.

Investors are excited about Imax's new strategy, but the company still has not reached its goal of showing four to six blockbusters annually.

And it's missed out on what will probably be the season's biggest hit, "The Lord of the Rings: The Return of the King."

"It would have been great to get 'Lord of the Rings,'" said Richard Gelfond, co-chief executive of Imax. "But we're going to find more event-type films like 'Harry Potter' in 2004."

"This is the second film we've done with Warner Bros., and we're more in sync," he said.

Yesterday, Imax stock closed up 72 cents to $7.87 a share.