Can Big-Screen Success Save Struggling Cinema Chains?

The film industry has been grappling with declining attendance and revenue, but Imax is bucking the trend. The company reported a 62% surge in global box office sales in the fourth quarter, driven by the success of Hollywood blockbusters like "Avatar: Fire and Ash" and local language titles. This surge has led to a significant increase in Imax's stock price, with shares rising by 7% in after-hours trading.

However, not all cinema chains are faring as well. Paramount Skydance, the owner of the CBS broadcast network and Paramount+, saw a downturn in revenue from TV advertising and distribution in the fourth quarter, leading to a wider loss for the period. The company is currently pursuing an acquisition of Warner Bros. Discovery, but the deal's outcome is uncertain.

Meanwhile, the Visual Effects Society (VES) has announced the winners of its 2026 VES Awards, recognizing excellence in visual effects across 25 categories. "Avatar: Fire and Ash" led the winners with seven awards, including the top prize of outstanding visual effects in a photoreal feature. "KPop Demon Hunters" also dominated the animation category, winning three trophies, including the top prize of outstanding animation in an animated feature.

The success of "Avatar: Fire and Ash" is not limited to the VES Awards. The film has been a major contributor to Imax's box office surge, and its success has been driven by its innovative use of visual effects. The film's use of Imax's proprietary cameras has been particularly noteworthy, and the company is looking to increased contributions from Hollywood blockbusters shot with its cameras to drive future growth.

In other news, comedian Martin Short has postponed a string of dates on his comedy tour alongside Steve Martin following the death of his daughter, Katherine Short. The tour, which was scheduled to kick off on Friday in Milwaukee, has been put on hold due to unforeseen circumstances.

The film industry is facing significant challenges, but the success of Imax and the innovative use of visual effects in films like "Avatar: Fire and Ash" offer a glimmer of hope. As the industry continues to evolve, it will be interesting to see how cinema chains adapt to changing consumer habits and technological advancements.

Sources:

• Visual Effects Society
• Imax
• Paramount Skydance
• Martin Short's representatives