IMAX: A High-Conviction Growth Play in the Premium Cinema Experience

The global premium cinema market is undergoing a transformation, driven by evolving consumer demand for immersive experiences and the strategic expansion of network effects. At the forefront of this shift is IMAX, a company that has redefined large-format entertainment. With a record $1.28 billion in global box office revenue in 2025-a 40% increase from 2024-IMAX has demonstrated its ability to scale network effects and leverage content diversification to outperform industry trends. For investors, this represents a compelling case for a high-conviction growth play in a sector where premiumization is accelerating.

Scaling Network Effects: The Power of a Global Footprint

IMAX's growth strategy hinges on expanding its network of screens, which in turn drives demand for its technology and content. By the end of 2024, the company operated 1,735 IMAX systems globally, with 146 installations added that year alone-reaching 1,829 systems by September 2025. This expansion is not merely quantitative but strategically targeted. Asia, North America, and the Rest of the World (ROW) have all seen significant additions, with China, Japan, and India emerging as critical markets.

The network effect here is self-reinforcing: more screens mean more theaters capable of showcasing IMAX's premium format, which in turn attracts filmmakers and studios to produce content optimized for the platform. For instance, IMAX's 2025 results highlighted a 14% year-over-year increase in North American box office revenue to $449 million, while China's contribution rose to $407 million, a 5% increase over its 2019 record. This growth is underpinned by a 3.8% global market share, achieved through a network spanning 89 countries and territories.

Moreover, IMAX's installation pipeline remains robust. The company ended 2024 with a backlog of 440 systems and plans to add 150–160 new screens in 2025. This momentum is critical, as the global cinema screen market-particularly for premium formats like IMAX-is projected to grow at a 5.4% CAGR from 2023 to 2024, with installations rising from 1,860 to 2,200.

Content Diversification: Beyond Hollywood Blockbusters

While Hollywood franchises have traditionally dominated IMAX's slate, the company's pivot toward content diversification has unlocked new revenue streams. Local language films, in particular, have become a cornerstone of its strategy. In 2025, IMAX reported $405 million in revenue from non-English films-a 65% increase from 2023. This shift reflects both a response to regional preferences and a proactive effort to partner with local studios.

Case studies illustrate the impact of this strategy. Ne Zha 2, a Chinese animated sequel, grossed $166.7 million on IMAX screens, while Demon Slayer: Infinity Castle, a Japanese anime, earned $95.9 million. These films not only dominated their domestic markets but also achieved international success, with The First Slam Dunk and Suzume earning more in China than in Japan. Such cross-border appeal underscores IMAX's role as a global distribution platform for premium content.

This diversification has also insulated IMAX from Hollywood's cyclical fluctuations. For example, in Japan, local films accounted for 75% of the box office in 2024, compared to 24% for Hollywood titles. By aligning with regional production hubs, IMAX has created a more resilient revenue model.

A Virtuous Cycle: Network Effects + Content = Sustained Growth

The interplay between network expansion and content diversification creates a virtuous cycle. More screens attract filmmakers to produce IMAX-optimized content, which in turn drives higher box office returns and justifies further network expansion. This dynamic is evident in Asia-Pacific, where urbanization and rising disposable incomes are fueling demand for premium experiences. The region's IMAX theatre market is projected to grow at a 7.0% CAGR from 2024 to 2031, outpacing the global average.

Investor confidence is further bolstered by IMAX's financials. The company's 2025 results included a 13% increase in EBITDA margins, driven by higher screen utilization and content-driven ticket premiums. With a forward-looking slate that includes international titles like The Odyssey and Dune: Part Three, IMAX is positioned to exceed $1.4 billion in global box office revenue in 2026.

Conclusion: A High-Conviction Bet on Premiumization

IMAX's dual focus on scaling network effects and diversifying content has positioned it as a leader in the premium cinema experience. Its ability to adapt to regional preferences while maintaining global reach makes it a unique player in an industry increasingly defined by fragmentation and competition. For investors, the combination of a 10.6% CAGR in the IMAX theatre market through 2032 and a proven track record of outperforming Hollywood cycles offers a compelling case for long-term growth.

As the demand for immersive entertainment continues to rise, IMAX is not just capitalizing on the current wave of premiumization-it is shaping its trajectory.