The CEO of IMAX on How It Became a Hollywood Powerhouse
by Richard Gelfond

The Idea: The company experimented with business models to grow from its modest roots in nature documentaries into a major player in multiplexes around the world.
When I came to IMAX, in 1994, I had been an entrepreneur, a lawyer, and an investment banker. I didn’t know much about the movie business, but I recognized that the moviegoing experience IMAX offered had great potential if we could find the right way to grow.
A partner and I had acquired the company through a leveraged buyout, and we took it public a few months later. On paper the transaction was a success, and the company’s market cap grew rapidly. But at the time, most IMAX movies were nature documentaries shown in the theaters of science museums, and figuring out how to move into mainstream markets proved much more difficult than we’d expected. That was due in part to the technology constraints of the predigital era; it took years to find ways to make it easy and cost-effective to show IMAX movies in a large number of multiplexes. We also faced cultural challenges. The Hollywood movie industry is an interconnected system of studios, directors, and theaters that has evolved over 100 years, and it has a traditional way of doing things. As newcomers we spent years trying and failing to persuade the industry to adapt to our model. Even after we began adapting our strategy to fit the Hollywood way of doing business, it took a while to find a model that benefited us and our partners. Read more of this post