IMAX Corporation

Corporate history and technological development

The IMAX Corporation was founded in 1967 by Canadian filmmakers Graeme Ferguson, Roman Kroitor, and Robert Kerr, who were inspired by their multi-screen film experiences at Expo 67 in Montreal. Seeking to create a more immersive theatrical experience, they recruited engineer William Shaw in 1968 to develop a new projection system. Shaw's invention was a projector capable of displaying film frames ten times larger than standard 35mm, enabling exceptional image quality on giant screens. The first film produced with this new technology was Tiger Child, which debuted at Expo '70 in Osaka, Japan, marking the commercial introduction of the IMAX format. Shaw continued to contribute to the company's technological advancements, including the development of a 3D camera used on the International Space Station, until his death on August 31, 2002, at the age of 73.

In 1994, investment bankers Richard Gelfond and Bradley Wechsler acquired IMAX Corporation through a leveraged buyout and subsequently took the company public on the NASDAQ stock exchange. This shift in ownership marked a strategic turn toward attracting major Hollywood studios to the IMAX platform. A key technological breakthrough for this expansion was the development of IMAX DMR (Digital Media Remastering), a process that allows conventional films to be converted for high-quality presentation on IMAX screens. The company's theatre network experienced significant growth after 2008, when the introduction of digital projection systems allowed for cost-effective retrofitting into existing multiplex cinemas. This technological shift enabled the network to expand from 299 locations in 2008 to approximately 1,876 by 2026, a growth trajectory driven by the work of engineers like Chief Technology Officer Brian Bonnick.

• 1967: IMAX Corporation is founded in Montreal by Graeme Ferguson, Roman Kroitor, and Robert Kerr.
• 1968: Engineer William Shaw is recruited to develop the large-format projector.
• 1994: Richard Gelfond and Bradley Wechsler acquire the company via leveraged buyout.
• 2002: Death of projector inventor William Shaw.
• 2008: Introduction of digital projection enables multiplex retrofits, with 299 theatres globally.
• 2022: IMAX acquires streaming technology company SSIMWAVE for $21 million.

Business model and revenue segments

IMAX generates its revenue through two primary business segments: Technology Products and Services, and Content Solutions. The Technology segment involves the sale, lease, and maintenance of IMAX projection and sound systems for theatres worldwide. A significant portion of theatre installations operate under a joint revenue sharing arrangement (JRSA), where IMAX installs the system with little upfront cost to the theatre owner and instead takes a percentage of the gross box office receipts from IMAX screenings. As of 2026, slightly under half of the company's roughly 1,876 global locations operated under this JRSA model, aligning the company's success directly with the performance of films in its network. Other commercial arrangements include direct sales and lease agreements for theatre systems, which provide more immediate capital but less long-term revenue participation.

The Content Solutions segment is primarily driven by fees from the DMR process, through which Hollywood films are remastered for IMAX release. The company typically charges studios a conversion fee of around 12.5 percent of a film's gross box office receipts from IMAX screenings, with lower rates applied in Greater China. This segment also includes direct investments in content production, such as the company's 2016 co-production of the television series Marvel's Inhumans with ABC Studios. After the theatrical IMAX release of the first two episodes generated a box office of $3.5 million and received a poor reception, CEO Richard Gelfond stated the company would adopt a more conservative approach to future capital investments in content, comparing it to the approach taken for series like Game of Thrones. The company's financial performance is closely tied to the volume of major studio releases converted via DMR and the expansion of its theatre network under revenue-sharing deals.

Global expansion and strategic moves in Asia

IMAX's global expansion has been a central pillar of its growth strategy, with a particular focus on the Asia-Pacific region. A major milestone was the March 2011 announcement of a 75-theatre deal with China's Wanda Cinema Line, one of the world's largest cinema chains. The company opened its first location in Tianjin, China, in 2012, cementing its commitment to the market. To further capitalize on its Asian growth, IMAX established a subsidiary, IMAX China, which was listed on the Hong Kong Stock Exchange on October 8, 2015, raising $248 million in its initial public offering at the bottom of its indicative price range. By December 2019, the global IMAX network had grown to 1,624 theatres across 81 countries and territories, reflecting the success of its international strategy.

The offer valued the shares at HK$10 per share in cash, a premium of roughly 49 percent over the 30-trading-day average. The company cited weak stock appreciation by Chinese capital markets and declining sell-side analyst coverage as reasons for the move. Although the proposal received 70 percent approval from shareholders, it failed to meet the higher threshold required under Hong Kong takeover regulations, and the transaction was formally terminated. CEO Richard Gelfond affirmed the company's continued commitment to its China operations and indicated the earmarked capital would be redirected toward potential share buybacks of IMAX Corporation stock, exploring alternative uses for the funds.

• March 2011: China's Wanda Cinema Line announces a 75-theatre deal with IMAX.
• 2012: IMAX opens its first theatre location in Tianjin, China.
• October 8, 2015: IMAX China lists on the Hong Kong Stock Exchange, raising $248 million.
• December 2019: Global network reaches 1,624 theatres in 81 countries.
• July 2023: IMAX Corporation proposes to acquire full ownership of IMAX China. Offer fails.
• November 2025: IMAX operates 1,759 theatres in 90 countries.

Technological innovations for theatres and home

Beyond its core theatre systems, IMAX has consistently invested in new technologies to expand its market reach. A major initiative for the home entertainment sector is IMAX Enhanced, a licensing and certification program launched in September 2018 in partnership with DTS. Modeled on programs like THX, it certifies consumer audio-video hardware that meets specific performance standards and pairs it with IMAX-remastered 4K HDR content, using a variant of the DTS:X audio codec. Launch partners included major electronics and film companies such as Sony Electronics, Sony Pictures, Paramount Pictures, and Sound United, the parent company of Denon and Marantz. The format is available on streaming platforms like Disney Plus, bringing a version of the IMAX experience into homes and creating a new revenue stream through technology licensing.

The company has also grown through strategic acquisitions to bolster its technology portfolio. In September 2022, IMAX acquired SSIMWAVE, a Canadian artificial intelligence company that spun out of the University of Waterloo, for approximately $21 million. The deal involved $18.5 million in cash and $2.5 million in stock, with up to $4 million in additional performance incentives. SSIMWAVE's software specializes in assessing and enhancing video quality for streaming and broadcast delivery, with clients including Disney, Paramount Global, Warner Bros. Discovery, and Comcast. CEO Richard Gelfond framed this acquisition as part of a broader corporate shift, stating that IMAX is not merely a theatre exhibitor but fundamentally a technology licensing company focused on high-quality visual experiences across multiple platforms.

1. IMAX Dome: A variation designed for planetariums and dome-shaped theatres.
2. IMAX 3D: Technology for presenting three-dimensional films on the large format.
3. Digital IMAX: The digital projection system that enabled widespread multiplex expansion after 2008.
4. IMAX MPX: A theatre system designed for flexible installation in existing multiplex spaces.
5. IMAX Experience: A suite of technologies encompassing projection, sound, and theatre design.
6. IMAX Enhanced (2018): Home entertainment certification program with DTS.

Key theatrical releases and network growth

The commercial breakthrough for IMAX in mainstream Hollywood is widely credited to its involvement with the 2009 film Avatar, directed by James Cameron. The film's use of 3D and visual effects was a strong match for the IMAX format, driving significant box office revenue and demonstrating the commercial viability of IMAX presentations for major studio releases. This success paved the way for a steady stream of Hollywood blockbusters to receive IMAX DMR treatment and exclusive theatrical windows. The company's network growth has been closely tied to the popularity of these films, with the total number of IMAX locations increasing steadily from 299 in 2008 to 1,759 across 90 countries as of November 2025. Of these, 1,693 are located in commercial multiplexes, showing the format's integration into mainstream cinema exhibition, and the network includes variations such as IMAX 3D and IMAX Dome.

The company's theatre network grew from 299 locations in 2008 to approximately 1,876 locations by 2026. This growth was enabled by the introduction of digital projection, which allowed systems to be retrofitted into existing multiplexes. In March 2011, IMAX noted that China's Wanda Cinema Line announced a 75-theatre deal with IMAX Corporation. On October 8, 2015, IMAX China, a subsidiary of the company, was listed on the Hong Kong Stock Exchange.

IMAX theater systems are installed under a joint revenue sharing arrangement, where IMAX takes a percentage of gross box office receipts. Newer technology followed, including the IMAX MPX theatre system. Revamped IMAX 2D footage has been transferred into IMAX 3D. IMAX's Content Solutions business generates revenue through DMR conversion fees for remastering conventional films for IMAX release.

Corporate leadership and content ventures

Since the 1994 acquisition, Richard Gelfond has been the central figure in IMAX's corporate leadership. He served as co-CEO with Bradley Wechsler until April 2009, when he became the sole Chief Executive Officer and Wechsler transitioned to the role of chairman of the board of directors. Under Gelfond's leadership, the company has pursued a strategy of technological innovation, global theatre network expansion, and diversification into new business areas like home entertainment certification. The corporate structure includes the publicly traded parent company, IMAX Corporation, and its subsidiary, IMAX China, which manages the theatre network and business relationships within Greater China. The company's headquarters are located in Mississauga, Ontario, with additional major operations and offices in Los Angeles and New York City to maintain close ties with the American film industry and its global client base.

Beyond technology licensing, the company has ventured directly into content production and financing. In November 2016, IMAX announced a co-production with Marvel Television and ABC Studios for the live-action series Marvel's Inhumans. IMAX served as a financing partner, allowing for a larger budget, particularly for visual effects, and the entire series was filmed with IMAX digital cameras. The first two episodes were edited into a feature-length version and debuted on IMAX screens worldwide in September 2017 before airing on ABC, representing a novel distribution experiment. The venture yielded a box office gross of $3.5 million from the theatrical release, which was considered a disappointing result and led the company to declare a more conservative approach to future content investments, focusing on capital preservation similar to models used in other premium television productions.

Questions about IMAX Corporation

Where is IMAX headquartered?

IMAX Corporation is headquartered in Mississauga, Ontario, in the Greater Toronto Area. The company was originally founded in Montreal, Quebec, in 1967. It maintains additional operational offices in key entertainment hubs, including Los Angeles and New York City, to facilitate its relationships with Hollywood studios and global partners. Its subsidiary, IMAX China, is based in Hong Kong and was listed on the Hong Kong Stock Exchange in 2015.

Who founded IMAX and when?

IMAX was founded in 1967 by three Canadian filmmakers: Graeme Ferguson, Roman Kroitor, and Robert Kerr. Their inspiration came from experimenting with multi-screen film presentations at Expo 67 in Montreal. They sought to create a more immersive movie experience, which led them to recruit engineer William Shaw to develop the large-format projection technology that defines IMAX. The founding idea was also influenced by the work of filmmakers Colin Low and Hugh O'Connor on productions like In the Labyrinth.

How many IMAX theatres are there worldwide?

As of November 2025, there were 1,759 IMAX theatres operating in 90 countries around the world. The vast majority, 1,693, are located within commercial multiplex cinemas. The network has grown significantly from just 299 locations in 2008, driven largely by the adoption of digital projection systems that can be retrofitted into existing theatres. The company projects its network will include roughly 1,876 locations by 2026, with nearly half operating under joint revenue sharing arrangements.

What is IMAX DMR?

IMAX DMR, which stands for Digital Media Remastering, is the company's proprietary process for converting conventional films into the high-resolution IMAX format. This technology allows Hollywood blockbusters filmed with standard cameras to be enhanced for presentation on IMAX's giant screens with improved image and sound quality. Studios typically pay IMAX a fee based on a percentage of the film's IMAX box office receipts for this service, usually around 12.5 percent, with lower rates in Greater China. This process is a core component of the company's Content Solutions revenue segment.

What was IMAX's role in the film Avatar?

IMAX's involvement in the 2009 film Avatar is considered a major milestone that cemented its success in mainstream Hollywood. The film's use of 3D and visual effects was ideally suited for the immersive IMAX format, drawing large audiences and generating substantial box office revenue. The company credits this partnership with demonstrating the commercial power of IMAX presentations for major studio releases and strengthening its relationships within the industry. It marked a turning point in the company's focus on Hollywood productions and the DMR conversion process.

What is IMAX Enhanced?

IMAX Enhanced is a home entertainment certification program launched in September 2018 by IMAX and DTS. It sets performance standards for consumer televisions, soundbars, and AV receivers, certifying products that deliver high-quality video and audio. The program also provides specially remastered 4K HDR content with enhanced sound, available on streaming services like Disney Plus. Launch partners included Sony, Paramount, and Sound United, representing IMAX's strategic expansion into the licensed technology and home viewing market beyond traditional theatres.

Sources and further reading

• IMAX Corporation (Wikipedia)
• IMAX Corporation (IMAX) Stock Price, News, Quote & History (ca.finance.yahoo.com)

Checked by the Yadude Books desk. Last updated 2026-11-06.