Not only do prices need to come down, but consumer perceptions of IMAX also need to change for the technology to achieve any sort of successful revival.
Dedicated IMAX cinemas have been all-but consigned to the history books, while approximately 200 venues around the world are installed with IMAX 15/70mm film projectors or IMAX Laser projectors (almost 50% of which are split between the US and China). Meanwhile, the proprietary digital remastering technology has been showing signs of experiencing something of a second wind within the in-home consumer technology market, as appetites desperately crave immersion.
The answer to our opening gambit hangs on how well IMAX and parent company Xperi can convince streaming services and TV manufacturers to deliver IMAX Enhanced content – which is the firm’s blend of remastered 4K HDR content and premium audio from specialist DTS (also a subsidiary of Xperi). Last time we checked, IMAX Enhanced titles were available on 4 streaming platforms available in 14 different countries, supported by 17 CE manufacturers. This week, Xperi has come out claiming in its first quarter results announcement that a “major streaming content service” is on the cusp of committing to IMAX Enhanced technology, while China’s Xiaomi has just been added to the list of supporting TV makers, along with big names Sony, TCL and Hisense.
In May 2020, following a major deal with Sony Pictures Entertainment, IMAX announced a target of releasing at least 100 new titles over the following 12 months in IMAX Enhanced Format. Exactly a year later, there is no indication anywhere on the IMAX Enhanced website of whether this target of 100 new titles has been met or not, so Faultline dropped a quick enquiry by the press office to clarify, and – after a bit of internal digging – we were told that IMAX has indeed met this target.
“There are currently 103 IMAX Enhanced titles available on Sony’s Bravia Core platform (Sony announced the platform in January), with additional titles available on other streaming platforms worldwide,” an IMAX representative told us.
In the US, FandangoNOW began streaming IMAX Enhanced content in September 2019, followed by Rakuten TV in European markets, as well as Tsutaya in Japan. While these are respectable OTT video outfits, Xperi’s reference to a major breakthrough suggests one of international reach. Of course, you can operate in one country alone and still be considered major, but IMAX needs to dream bigger, hence why we are.
Given that IMAX Enhanced is a premium experience, the mystery forthcoming client would imply a premium SVoD platform, so we can certainly write off AVoD as an option. The top crop of US services – Netflix, Disney+, HBO Max, Hulu, Amazon Prime Video, to name just a few – are probably unlikely candidates as these platforms are already spending substantial sums on content, while differentiating from the competition by adding IMAX Enhanced content does not strike us a priority move for any of these.
Sticking with the US market, then perhaps something like Paramount+ could be a candidate, the revamped CBC All Access platform from ViacomCBS, although there is a whole world out there comprising thousands of streaming services that would proudly contest their status as “major” – so we admittedly we don’t have much to go on here.
As alluded to earlier, recent performances of IMAX theaters at the Chinese box office has exceeded expectations, even during the pandemic. A Chinese historical war drama called The Eight Hundred, shot completely on IMAX cinemas, had already secured a profit as of August 2020, when theaters in China were permitting 50% screening capacity.
Interestingly, IMAX is one of only two current content creator members of the 8K Association. IMAX cameras can be scanned at 8K, and some sports events have trialed 8K production, with the Tokyo Olympics due to heavily feature 8K feeds.
Even more intriguingly, Faultline attended a webinar last summer featuring Xperi, where the case for Next Generation Audio (NGA) was argued as the generic term for newer technologies based on the notion that consumers are going to be left feeling underwhelmed if 8K video is delivered in stereo sound. Generally, NGA adds high channels to 7.1, and IMAX’s adoption of DTS for its IMAX Enhanced streaming service brings up to 11 distinct channels.
Nearly three years have passed since IMAX kicked off its new certification and licensing program for consumer electronics products and content, in partnership with DTS. Working in IMAX digitally reversed 4K HDR, the proprietary postproduction process can produce more vibrant colors, greater contrast and sharper clarity, while the DTS:X audio codec technology brings an improved home audio experience.
We should remember that IMAX tried and failed to make a splash in the virtual reality market, shutting down all VR operations in 2019 after wasting $millions on content and centers, including a joint VR camera project with Google.
Elsewhere in Xperi’s first quarter results filing, demand for the TiVo IPTV video services saw sustained growth with deployments increasing nearly 100% over Q4 2020. Other pay TV highlights included an extension deal with Vodafone for access to more products and services from the Xperi portfolio alongside TiVo’s current systems on the new VTV platform.
Best bits from the Consumer Experience segment include expanding the TiVo Stream footprint with increasing activations, while the TiVo+ service received a content boost via deals with IMDb TV and Paramount+.
However, Xperi has said that TiVo’s Android TV-based 4K streaming device could be a flash in the pan due to saturation in the streaming hardware market. CEO Jon Kirchner has instead sowed the seed for a move to an embedded application on connected TV devices such as Google’s cheaper Chromecast with Google TV. In more positive news, TiVo’s ad-supported connected TV inventory has been made available to buyers on AT&T’s Xandr Marketplace, while TiVo has also entered the bidding for the bankrupt MobiTV (see separate story in this issue).
On the connected car frontier, German media group SWR has integrated the DTS AutoStage hybrid radio platform into its ARD-Eventhub metadata distribution to deliver in-vehicle entertainment experiences.