Imax Takes Stake in Home Theater Tech Startup Prima Cinema
TORONTO – Imax has taken a major step toward rolling out a mass market home theater option for consumers by acquiring an unspecified stake in startup Prima Cinema.
Prima has a proprietary system that can encrypt and transmit theatrical releases from Hollywood studios for secure home viewing.
The move comes as Imax continues to develop a home theater system for consumers that features its imaging technology.
Prima Cinema's technology can also potentially allow first-run Imax films to reach customers on a day-and-date basis.
Imax plans to merge the Prima Cinema technology into its private theater system and other possible platforms.
As part of the agreement, Imax will receive a five-year window of exclusivity to distribute and resell Prima systems in China.
Imax will also take a seat on Prima Cinema's board of directors and retains a "significant option position" in the company.
"Today's agreement with Prima Cinema enhances our ability to deliver a premium, end-to-end in-home entertainment experience, combining the best of Imax's immersive image and sound technology with the delivery of current theatrical titles," said Imax CEO Richard Gelfond in a statement on Monday.