You can’t see any of their films at multiplexes in Orange County,at least for now.
But Alec Lorimore, vice president of production and development at MacGillivray Freeman Films, said the core audience for his large format IMAX films is still alive and kicking.
“The overwhelming majority of our revenue is derived from museum theaters in this area such as the Reuben H. Fleet Space Theater and Science Center in San Diego and the California Science Center in Los Angeles,” Lorimore said.
Privately held MacGillivray, which has 30 employees, declined to disclose exact annual revenue figures, but said it is a “multi-million dollar” company.
MacGillivray’s revenue is mainly derived from leasing agreements that it strikes with theaters that want to run its IMAX films and sometimes those of other companies. MacGillivray said it secures about 100 to 150 leases for each of its films. The OC company has also been hired under contract to develop an IMAX film for another company.
MacGillivray predominantly funds its own films, though it has received grants from the National Science Foundation and support from corporate sponsors.
Still the large format film industry is staring down an uncertain road, as large multiplex cinemas, which had started to feature the films, and Toronto-based IMAX Corp., which makes the equipment to view the films, have both been embroiled in financial woes.
Earlier this year, Edwards Theatres Circuit Inc., Newport Beach, ended its experiment with IMAX,and closed OC’s only IMAX venue, its theater in the Irvine Spectrum. The company, which had filed for bankruptcy and is reorganizing, said the business venture was not profitable.
Meanwhile, IMAX, which is also restructuring, has seen its own woes. As of last week, the company’s stock was trading below a 1 from a 52-week high of 16.94. Its revenues were $38.6 million for the three months ended June 30 vs. $62.8 million in the year-ago period. The company posted a loss of about $11.4 million for the quarter vs. a gain of $4.7 million a year ago.
IMAX company officials have said in company statements that they expect to return to profitability by 2002.
But Lorimore is quick to point out that Edwards’ and IMAX’s financial problems haven’t had a direct impact on MacGillivray, which is readying for its latest release “The Science of Speed.” The film will open in theaters by September 2002.
He said everything is “off a little bit given the economy,” but MacGillivray hasn’t had to change its strategy. The company releases one film a year.
“The impact for us is the extent to which the public thinks there’s some sort of problem going on, which there really isn’t. The museums are still doing well,” he said.
Still, MacGillivray has some concerns.
What if IMAX does go under?
“What happens to the brand?” Lorimore said. “The brand is extremely valuable not only to them but to us and to others.”
There are few other companies besides IMAX that make pricey large format film equipment, but not many,which is another worry for Lorimore.
“Who would supply projection equipment to other theaters?” he said.
For now, MacGillivray continues to push ahead and watch the commercial sector closely. Theaters are highly anticipating Walt Disney Co.’s release of “Beauty and the Beast,” which will hit IMAX theaters on Jan.1, 2002.
Next fall, McGillivray will debut “The Science of Speed,” which features world class sprinter Marion Jones and downhill mountain bike racer Marla Streb.
Earlier this year, MacGillivray released the “Journey Into Amazing Caves,” which had grossed $18.1 million at the worldwide box office as of last month. The company also received an Academy Award nomination for its 2000 film “Dolphins.”
Lorimore said MacGillivray will continue to strengthen its client base of science museums (the Discovery Science Center in Santa Ana is reportedly considering putting in a large-format theater). That means making product that is as “compelling and entertaining as possible while meeting their criteria for education,” he added. n
