IMAX Boosts Revenue Through Licensing Model as Nolan Film Sets Box-Office Record

Christopher Nolan's adaptation of "The Odyssey" became the highest-grossing IMAX release ever, pulling in $289 million worldwide within a month, according to the company. The strong performance helped IMAX post its most profitable July on record, with global box-office sales reaching $257 million.

IMAX CEO Richard Gelfond said the format has reached a "tipping point" after recent titles such as "Dune" and "Oppenheimer" attracted large audiences. He noted that the company earns money primarily through two streams: content solutions, where studios pay a fee that averages 12.5 % of IMAX box-office receipts, and technology products and services, which include licensing its brand and equipment to theater operators.

Under the licensing model, theater chains can either purchase IMAX systems outright, lease them, or enter joint-revenue-sharing agreements (JRSAs). In a JRSA, IMAX supplies and installs the equipment while assuming most upfront costs, then receives a percentage of ticket sales over contracts that typically last at least ten years. Premium pricing—about $27.80 for an IMAX 70 mm ticket versus a $16.30 average ticket—supports the higher revenue share.

Only 41 IMAX 70 mm screens exist worldwide, with a single theater owned by IMAX itself. The scarcity of these venues, combined with higher ticket prices, makes the format attractive to both filmmakers and audiences seeking an immersive experience. Competition from other premium formats such as Dolby Cinema and Regal RPX exists, but Gelfond maintains that consumers continue to favor IMAX for its perceived superior quality.

The success of "The Odyssey" and upcoming releases like "Dune: Part Three" illustrate how IMAX’s licensing approach allows the company to profit from a broad network of theaters while retaining control over its brand and technology.