Yahoo Finance IMAX CEO: 'No doubt' of a summer box office boom as China loosens COVID restrictions
IMAX (IMAX) CEO Richard Gelfond is bullish on a theater comeback.
"There's just no doubt in my mind that movies are open for business," Gelfond told Yahoo Finance in a new interview (video above).
The executive cited the stunning performance of "Top Gun: Maverick," which smashed a 15-year record for Memorial Day weekend after bringing in an estimated $160.5 million in domestic ticket sales and $300 million worldwide.
IMAX screens accounted for 14% of that total domestic haul and about 8.5% of the international box office after generating a whopping $32.5 million in ticket sales (the company's best global four-day Memorial Day Weekend opening ever.)
The sequel to the 1986 classic followed the ultra-successful "Doctor Strange in the Multiverse of Madness" and now paves the way for a heavy slate of hot summer titles, including "Jurassic World: Dominion," "Lightyear," "Minions: The Rise of Gru," and "Thor: Love and Thunder."
"[Those movies] are going to over-perform," Gelfond predicted, adding that relaxed lockdowns overseas is cause for further celebrations.
Earlier this week, Beijing and Shanghai — key markets for the international box office — announced that it would start to reopen after about two months of intense lockdowns that forced citizens to remain indoors.
Gelfond noted that about 85% of IMAX locations in China are now open and operational, with many films like "Jurassic World: Dominion" finally receiving an official opening date in the country (June 10).
The Chinese market is "definitely starting to come back," he said.
"I don't think you'd see the combination of the announcements and the re-openings unless [Chinese officials] had some confidence that things were going to start returning to normal," the CEO continued.
'For quality, people will pay up'
Gelfond added that premium ticket prices do not seem to be deterring consumers, either, saying that IMAX's market share "has been going up" since the start of the pandemic.
"For quality, people will pay up," he stated, noting how consumers are still willing to spend on other forms of entertainment like concerts and sporting events despite the current inflationary environment.
"People just spent so much time sitting on their couch that, if they get something really special, like IMAX, they're going to be happy to pay more for it," he continued.
National Association of Theatre Owners (NATO) CEO and president John Fithian agreed, telling Yahoo Finance that "people like to come out to the movies during difficult economic times because it's affordable."
He noted that the theatrical experience is significantly cheaper than other forms of out-of-the-home entertainment, and that premium ticketing just means more options for consumers.
"What we advocate for and what we're seeing is a range of choices at the box office," Fithian said, referencing the pricer IMAX experience, along with the cheaper standard outing or matinee.
Overall, "movie theaters do better during recessions than almost any other form of entertainment outside of the home. These are all economic challenges that everyone is facing. The difference is that movie theaters thrive during economic challenges," he stated.
Alexandra is a Senior Entertainment and Food Reporter at Yahoo Finance. Follow her on Twitter @alliecanal8193 and email her at alexandra.canal@yahoofinance.com
Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and YouTube
