The recent deal between IMAX and Netflix for a limited theatrical release of Greta Gerwig’s “Narnia” has sparked controversy within the film exhibition industry. Vue Entertainment’s CEO, Tim Richards, has voiced his concerns over the implications of this arrangement, asserting that it could potentially undermine traditional theatrical business models.
Background on the Controversial IMAX and Netflix Deal
In January, IMAX announced a deal with Netflix to give Greta Gerwig’s upcoming “Narnia” an exclusive two-week run in its theaters. This move has been met with skepticism and dissatisfaction from various quarters of the exhibition industry. Tim Richards, CEO of Vue Entertainment, Europe’s largest privately-owned cinema chain, publicly addressed these concerns in a letter shared with Variety.
Richards criticized the arrangement, emphasizing that both moviegoers and the exhibition sector stand to lose if such exclusivity deals become commonplace. He noted that IMAX CEO Richard Gelfond’s intention to pursue similar agreements could cause further disruptions in the industry.
Potential Risks to Traditional Cinema
Richards stressed how the IMAX-Netflix deal could jeopardize the “ecosystem” essential for theatrical success. He highlighted the case of Gerwig’s “Barbie,” which achieved remarkable box office returns without an IMAX release, dubbing IMAX as “no longer” the most technologically advanced option in Premium Large Format (PLF) screenings.
IMAX’s “nuclear option,” a legal enforcement strategy to ensure the “Narnia” screening, further adds to the tension, potentially limiting theater operators’ choices. Richards asserts, “The industry should never try to convince audiences that there is only one way to enjoy a great film.”
The Wider Impact and Industry Response
The agreement restricts “Narnia” to IMAX theaters, missing out on traditional screens, which means audiences across the globe might not have access to the film in their local cinemas. This exclusivity disregards other premium formats like Dolby Cinemas and Cinemark’s XD, which often outperform IMAX in terms of gross earnings.
IMAX, according to Richards, is encouraging similar models, which could destabilize the industry. He argues that IMAX, with less than 1% of global screens, isn’t essential for a film’s success. “Barbie” is cited as proof, having grossed $1.5 billion without needing IMAX’s platform. Richards quoted Gerwig: “In my heart of hearts, I want audiences to see my movie in Dolby Vision with an [Dolby] Atmos mix.”
Looking Forward: A Collaborative Approach
Technological advancements in projection and sound have made a wider range of formats available to filmmakers and audiences alike. Richards notes that developments like Dolby Atmos and HDR projectors now set industry standards. While he acknowledges IMAX’s strong product, he maintains that they are not the technological leaders they once were.
The need for collaboration between theaters and studios is paramount, says Richards, emphasizing that the focus should remain on providing the best possible experience for audiences. In closing, he reaffirmed, “The industry should never try to convince audiences that there is only one way to enjoy a great film.”
