Imax broke its box office records in China over the Lunar New Year’s holiday weekend and the results predict what will happen when more US theaters resume operations this summer, he told CNBC on Tuesday CEO Rich Gelfond.
The company, which produces immersive film experiences, said it grossed $ 25 million between Friday and Sunday, a 45 percent increase from a pre-pandemic record.
“He tells you [that] when it’s safe to go out on the street and people want to go there, they’re going to run to go to the movies, ”said Gelfond, who appeared on“ Closing Bell ”after the negotiation ended the day on Wall Street.
“Detective Chinatown 3,” a comic adventure that was postponed from its Lunar New Year premiere last year, generated a large chunk of Imax ticket sales over the three days. The film grossed $ 23.5 million, the best results Imax said he has ever seen for a Chinese film. The action films “A Writer’s Odyssey” and “New Gods: Nezha Reborn” also helped Imax reach gross attendance and sales highs.
Shares of Imax that came out of the news rose more than 6% on Tuesday, its best day since November. Shares closed at $ 19.85 and rose more than 5% after hours.
Imax admitted more than a million people to Chinese cinemas on Friday, its best attendance of a day recorded. The results come despite the capacity constraints that remain in China’s entertainment establishments. The $ 25 million Imax charged at the box office was better than what they saw during the comparable opening week of 2019, which preceded the coronavirus pandemic.
Most theaters in China have 75% capacity limitations, while some parts of the country with higher Covid-19 transmissions are limited to 50%. U.S. theatrical restrictions differ by state. Restrictions range from 25% of capacity in Minnesota to 50% in Indiana and 100% in Alaska, according to data from the National Association of Theater Owners.
The seven-day Lunar New Year holiday ends Wednesday. Theaters closed in China this time last year when the country closed in response to the rapidly spreading virus, which was discovered in late 2019 in Wuhan City, Hubei Province.
The film’s influx was fueled by the traditional travel season in China that was largely suspended due to coronavirus restrictions. With travel plans discarded, millions spent time in the movies.
Gelfond said Imax had expected a strong turnout in China over the weekend.
“I think the only thing that can be said is the accumulated demand, that people just get tired of sitting on their couches and, you know, watching streaming or whatever else they’ve done,” he said. . “I think they’re just happy to go out, and I think it portends the rest of the world.”
In the midst of the pandemic, Imax’s business revenue fell 74% in 2020 through September, from its first three quarters of the previous year. The company will have to report fourth-quarter and full-year performance in 2020 next month.
Gelfond said in December that the U.S. film premieres of 2021, including a list of films that were postponed from initial releases last year, would present “a shame of riches” for Imax, in in case the country’s cinemas open at the beginning of the year.
For the film industry in general, mainland China generated sales of 6.77 billion yuan, or $ 1.05 billion, as of Tuesday for the holiday week, according to online ticketing platform Maoyan Entertainment . This figure exceeds the record 5.9 billion yuan contributed during the same period in 2019.
Since theaters reopened there in June, box office revenues have been rising. Coronavirus cases have plummeted in countries such as China, Australia and South Korea, and film ticket sales have risen.
Global movie ticket sales fell 70% in 2020 over the previous year. Ticket sales in Asia Pacific accounted for approximately 51% of global sales, compared to 41% in 2019, according to information from Comscore and Gower Street. Box offices in the United States and Canada accounted for only 18% of sales in 2020, compared to 30% in 2019.
– Reuters contributed to this report.