China has become a problem territory for IMAX , Fool contributor Tim Beyers says in the following video.
How so? Next month, IMAX will have to choose how it screens Gravity and The Hunger Games: Catching Fire in China since the two movies open on consecutive days. The overlap could prevent IMAX from maximizing profits on two huge properties in one of its key global territories. (Remember, Iron Man 3 was a record-setter for the company in that part of the world.)
Meanwhile, Gravity's worldwide success -- the film had earned 22% of its $171 million domestic haul from IMAX showings through Oct. 20 -- has rekindled the notion that premium theater experiences are the future. Maybe, Tim says, but investors thought the same of 3-D after Avatar became a $2 billion worldwide winner.
Should investors be concerned by IMAX's China constraints? Or is increasing demand a buy signal? Tim answers these questions and more in the video. Please watch now, and then leave a comment to let us know what you think.
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The article Diagnosing IMAX's China Syndrome originally appeared on Fool.com.Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He owned shares of Time Warner at the time of publication. Check out Tim's web home and portfolio holdings or connect with him on Google+, Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.The Motley Fool recommends Imax. The Motley Fool owns shares of Imax. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.