Imax Faces 'Challenging' 2021 but Should Expand Share, Says Wedbush

After a “dismal” 2020 with “months of theater closures, low utilization and a dearth of new content,” 2021 is also shaping up as challenging for Imax, Wedbush analyst Michael Pachter wrote investors Monday. Several high-profile Imax films were pushed to next year, making the list “appear satisfactory,” but Wedbush sees “significantly slower screen growth in 2021” as theater partners look to prop up balance sheets. The theater chain doesn’t face bankruptcy risk, said Pachter, citing a “cash runway” and cost structure. The analyst expects crowds to return to theaters in North America and Europe once a COVID-19 vaccine is available. Imax blockbusters are largely insulated from the threat of premium VOD, and Wedbush expects Imax to continue expanding market share. Meanwhile, U.S. moviegoers are becoming more confident going to theaters due to new safety measures, said a Monday Comscore survey. Some 92% had a positive experience at the movies, with 60% saying they would return. Just over half said they went back to theaters to socialize with friends and family and to return to normal routines. Recent compelling film releases were also drivers. The survey of 3,000 U.S. consumers was fielded Aug. 21-Sept. 6.