An Imax stock study by Richard Greenfeld in New York suggests that if theater owners are unsure of the market some will cancel orders for Imax systems. This "may reduce the economic justification for original film production in the Imax format, hence limiting attendance growth potential."

The best news from the reports available is that the corporation is estimated to have a large cash reserve ($30-35 million) and a manageable debt, "leaving Imax in a healthy financial position."

Physics-based animation methods in "The Steadfast Tin Soldier" created the life-like movement of the ballerina's skirt and hair. © Disney Enterprises, Inc. All rights reserved.

Different Theatres Have Different Kinds of Programming
The Imax Corporation developed out of a group working on Expo ‘67 in Montreal. Imax made its debut at Expo ‘70 in Osaka, Japan. Their first permanent theater was the Cinesphere at Ontario Place in Toronto (1971). The first OmnImax hall was the domed Ruben Fleet Space Theater in San Diego (1973).

The company expanded at first around institutions with an educational mission. Today there are over 220 Imax theaters in 26 countries. Most of those that are in planetariums and science museums do not seem interested in showing general entertainment films. I suspect they will continue showing science and nature films for many decades into the future.

Those theaters in multiplexes and other commercial situations have managers more likely to be interested in showing animation and other forms of dramatic films. Fantasia/2000 made almost $50 million, even though there were only 75 Imax halls willing to book it before it went into 35mm release. (It was shown on 1,313 screens in 35mm theaters, but their gross per screen was far less than what each Imax hall grossed.)

The first film to hatch using the SANDDE system -- the Imax 3D animated film Paint Misbehavin'. © Imax Ltd.

Animation Is A Practical Medium For Imax At This Time
There are several reasons why 70mm dramatic productions haven’t been the mainstay of Imax operators wanting to keep the public entertained. One is the basic economic realization that if there are only a few houses that will show your finished product, you have to keep your production costs down. Arthur Schwartzberg, president of Xaos, a company that has worked on twelve 70mm productions, said almost all Imax productions in the past have cost around $6 million. Old Man and the Sea cost $3.4 million. Cyberworld, with about 11 minutes of new animation (the rest is clips purchased from other producers), is said to have cost under $10 million.

One reason animation is appealing to Imax producers is they do not have to pay for high priced talent (well known stars, directors, script writers, etc.). With low budgets and expensive lab bills that is a strong incentive to try animation.