1 00:00:06,000 --> 00:00:08,039 Speaker 1: Welcome to Fear and Greed Q and A where we 2 00:00:08,080 --> 00:00:11,680 Speaker 1: ask an answer questions about business, investing, economics, politics and more. 3 00:00:11,720 --> 00:00:13,960 Speaker 1: I'm Michael Thompson and today we've got something a little 4 00:00:13,960 --> 00:00:17,360 Speaker 1: bit different to most Australians. I would say that Imax 5 00:00:17,560 --> 00:00:20,280 Speaker 1: is known for giant cinema screens, and I mean really 6 00:00:20,400 --> 00:00:24,000 Speaker 1: big screens that to a large extent almost disappeared from 7 00:00:24,040 --> 00:00:26,920 Speaker 1: this market for quite a while. But not only are 8 00:00:26,920 --> 00:00:30,760 Speaker 1: the Imax screens back, there's I think four already in Australia, 9 00:00:30,800 --> 00:00:33,560 Speaker 1: more about to come online and plans to build plenty 10 00:00:33,600 --> 00:00:36,000 Speaker 1: of others. But the company is a lot more than 11 00:00:36,159 --> 00:00:39,199 Speaker 1: just cinemas. And I'm joined in the studio today by 12 00:00:39,240 --> 00:00:43,199 Speaker 1: Giovanni Dolci, who is the chief Commercial Officer at Imax Corporation, 13 00:00:43,400 --> 00:00:45,720 Speaker 1: which is listed on the New York Stock Exchange. He's 14 00:00:45,720 --> 00:00:48,159 Speaker 1: in Australia at the moment. He's dropped into the studio 15 00:00:48,200 --> 00:00:50,200 Speaker 1: for a chat. Geo Dolci. Welcome to Fear and Greed 16 00:00:50,240 --> 00:00:53,559 Speaker 1: Q and a thank you. Michael set the scene for me. 17 00:00:54,280 --> 00:00:57,000 Speaker 1: It is not just big screens, is it. Imax is 18 00:00:57,040 --> 00:01:00,080 Speaker 1: everything from the film format and the cameras through the 19 00:01:00,120 --> 00:01:03,400 Speaker 1: projection system. It is kind of end to end, right. 20 00:01:03,360 --> 00:01:05,800 Speaker 2: It is absolutely that's actually what sets us apart. 21 00:01:06,600 --> 00:01:07,479 Speaker 1: I would say we have the. 22 00:01:07,440 --> 00:01:11,360 Speaker 2: Only format that has this end to end approach. Everything 23 00:01:11,440 --> 00:01:14,840 Speaker 2: is different in an IMAX theater, and you can't achieve 24 00:01:14,880 --> 00:01:18,040 Speaker 2: that level of differentiation by just putting a big screen 25 00:01:18,480 --> 00:01:21,280 Speaker 2: in a big box. That's an important part of it. 26 00:01:21,319 --> 00:01:24,039 Speaker 2: But we start from the onset. Whenever we can. We 27 00:01:24,080 --> 00:01:27,080 Speaker 2: collaborate with the world's best filmmakers to make sure that 28 00:01:27,120 --> 00:01:30,720 Speaker 2: they conceive their movie with Imax in mind. We want 29 00:01:30,720 --> 00:01:33,280 Speaker 2: to give them tools to put their vision on screen. 30 00:01:33,400 --> 00:01:36,480 Speaker 2: Sometimes we give them access to our cameras for instance. 31 00:01:37,200 --> 00:01:41,959 Speaker 2: Then that special movie goes through a dedicated post production 32 00:01:42,080 --> 00:01:47,039 Speaker 2: process in our facilities, so we also post produce the 33 00:01:47,080 --> 00:01:49,720 Speaker 2: movie in a different way. Then we collaborate with our 34 00:01:49,840 --> 00:01:53,560 Speaker 2: partners in distribution, the studios and distributors, to make sure 35 00:01:53,600 --> 00:01:55,960 Speaker 2: that that movie is brought to market in a very 36 00:01:55,960 --> 00:01:59,880 Speaker 2: special way. And then of course it hits the theater 37 00:02:00,080 --> 00:02:04,360 Speaker 2: where we put our propetory technology in image and sound 38 00:02:04,720 --> 00:02:08,240 Speaker 2: to make sure that that movie looks and sounds at 39 00:02:08,280 --> 00:02:10,919 Speaker 2: its best. But it's really end to end in that sense. 40 00:02:11,040 --> 00:02:15,200 Speaker 1: You mentioned the filmmakers. They're just how big a part 41 00:02:15,320 --> 00:02:17,959 Speaker 1: do they play and having them on board, because these 42 00:02:17,960 --> 00:02:20,800 Speaker 1: are some of the biggest names in film in terms 43 00:02:20,840 --> 00:02:27,079 Speaker 1: of James Cameron with Avatar, Christopher Nolan, Oppenheimer Interstellar as 44 00:02:27,120 --> 00:02:30,160 Speaker 1: well another one which which keeps popping up at Imax 45 00:02:30,160 --> 00:02:31,640 Speaker 1: every now and then you can go and see it. 46 00:02:32,080 --> 00:02:34,960 Speaker 1: How important is it to have these names on board 47 00:02:35,000 --> 00:02:37,840 Speaker 1: and what is it about Imax that kind of keeps 48 00:02:37,919 --> 00:02:40,160 Speaker 1: them coming back and gives them something different? 49 00:02:41,080 --> 00:02:45,320 Speaker 2: It's critically important. We are very very proud of our 50 00:02:45,680 --> 00:02:48,600 Speaker 2: relationships with filmmakers, and we're really proud that we are 51 00:02:48,600 --> 00:02:52,560 Speaker 2: able to add value to their vision and to their movies. 52 00:02:53,040 --> 00:02:57,160 Speaker 2: So those relationships are what allows Amax and enables Amax 53 00:02:57,200 --> 00:03:00,520 Speaker 2: to be what it is. Chris Nolan, for instance, has 54 00:03:00,560 --> 00:03:05,440 Speaker 2: been a long time supporter of our format and it 55 00:03:04,880 --> 00:03:10,760 Speaker 2: pushes it to really the limits of what creative imagination 56 00:03:11,080 --> 00:03:16,560 Speaker 2: can do with that canvas. Someone like Nolan uses our 57 00:03:16,600 --> 00:03:20,760 Speaker 2: cameras or film cameras specifically, so we give him tools 58 00:03:21,240 --> 00:03:26,120 Speaker 2: right from the production of the movie. But what really 59 00:03:26,520 --> 00:03:29,400 Speaker 2: comes into play in the end to end format is 60 00:03:29,440 --> 00:03:34,640 Speaker 2: again that ability of capturing the movie in a different way, 61 00:03:34,680 --> 00:03:37,880 Speaker 2: in a different format, and then showing it in a 62 00:03:37,920 --> 00:03:42,160 Speaker 2: different way in the auditorium. So I think that another 63 00:03:42,280 --> 00:03:44,800 Speaker 2: very important thing for filmmakers is that we can guarantee 64 00:03:44,800 --> 00:03:48,560 Speaker 2: them how the movie looks in every single Imax theater 65 00:03:48,640 --> 00:03:52,600 Speaker 2: in the world. We recalibrate our theaters every day through 66 00:03:52,640 --> 00:03:56,000 Speaker 2: an automated routine. There is a very high definition camera 67 00:03:56,360 --> 00:03:59,920 Speaker 2: in every Imax auditorium. There are microphones that retune the sound, 68 00:04:00,320 --> 00:04:02,160 Speaker 2: and if you're a filmmaker, I'd like to think that 69 00:04:02,160 --> 00:04:05,120 Speaker 2: that is extremely important that we can tell you your movie 70 00:04:05,200 --> 00:04:07,760 Speaker 2: is going to look exactly the same as you're seeing 71 00:04:07,800 --> 00:04:10,400 Speaker 2: it in our facility in LA for instance, when they 72 00:04:10,400 --> 00:04:14,800 Speaker 2: do their QC. So we add value throughout the pipeline 73 00:04:14,840 --> 00:04:16,479 Speaker 2: and throughout the value chain. 74 00:04:16,600 --> 00:04:18,800 Speaker 1: It is such a high tech approach to know that 75 00:04:19,160 --> 00:04:23,280 Speaker 1: you can tell anywhere in the world how that movie 76 00:04:23,360 --> 00:04:25,800 Speaker 1: is playing out in terms of the picture quality, the 77 00:04:25,880 --> 00:04:29,239 Speaker 1: audio and everything and adjust that as required. It doesn't 78 00:04:29,240 --> 00:04:32,080 Speaker 1: matter whether it's in Sydney or in LA or Chicago 79 00:04:32,200 --> 00:04:34,400 Speaker 1: or London. You can do all of that centrally. 80 00:04:34,520 --> 00:04:38,080 Speaker 2: Yeah, it's a commitment to quality and also to how 81 00:04:38,279 --> 00:04:42,200 Speaker 2: the theaters are designed. For instance, they all involve our 82 00:04:42,240 --> 00:04:46,400 Speaker 2: perpetory geometry, so we really have a stake in how 83 00:04:46,600 --> 00:04:48,640 Speaker 2: audiences are experiencing that picture? 84 00:04:48,720 --> 00:04:51,160 Speaker 1: All right, Where does Australia fit into this? In terms 85 00:04:51,200 --> 00:04:54,520 Speaker 1: of the global plans for IMAX. I was reading that 86 00:04:54,600 --> 00:04:57,400 Speaker 1: I think we are number thirteen in the world by 87 00:04:57,440 --> 00:05:01,680 Speaker 1: box office for IMAX. Can we do better? Is it's 88 00:05:01,680 --> 00:05:04,360 Speaker 1: all about expansion. I mentioned that we've kind of gone 89 00:05:04,360 --> 00:05:07,919 Speaker 1: from one to ten. How far can we go? 90 00:05:08,600 --> 00:05:11,360 Speaker 2: We're almost at ten, I have to say, but we 91 00:05:11,760 --> 00:05:14,720 Speaker 2: currently have four open and they will. We expect them 92 00:05:14,720 --> 00:05:16,560 Speaker 2: to be ten by the end of a year, so 93 00:05:16,640 --> 00:05:19,760 Speaker 2: by the time Avatar, Fire and Ash is on screen. 94 00:05:20,320 --> 00:05:24,080 Speaker 2: And that pace of growth tells you that we are 95 00:05:24,200 --> 00:05:28,679 Speaker 2: really really focused on the market. Our partners here in exhibition, 96 00:05:28,760 --> 00:05:31,760 Speaker 2: the cinema operators are very focused. But ultimately we are 97 00:05:31,800 --> 00:05:35,680 Speaker 2: expanding because audiences are asking for IMAX, they are really 98 00:05:35,960 --> 00:05:39,920 Speaker 2: demanding the format and the territory is extremely important for us. 99 00:05:40,040 --> 00:05:43,400 Speaker 2: It's really a big part of our growth story. I 100 00:05:43,440 --> 00:05:47,880 Speaker 2: would say it was underscreened for sure before two years ago. 101 00:05:47,960 --> 00:05:51,760 Speaker 2: I was actually here in Sydney when Imax Sydney opened 102 00:05:52,000 --> 00:05:56,680 Speaker 2: together with Event Cinemas, and we had two IMAX theaters 103 00:05:56,680 --> 00:05:58,800 Speaker 2: at the time. This year, at this point in time, 104 00:05:58,839 --> 00:06:01,000 Speaker 2: we have four at the end of the year will 105 00:06:01,000 --> 00:06:04,159 Speaker 2: have ten. It's a pretty fast pace. 106 00:06:04,080 --> 00:06:07,080 Speaker 1: So there'll be another six online within the next six weeks. 107 00:06:06,839 --> 00:06:10,200 Speaker 2: Exactly, and we want to move even faster. I mean, 108 00:06:10,240 --> 00:06:14,680 Speaker 2: we think that there are some obvious spots that deserve 109 00:06:14,760 --> 00:06:18,760 Speaker 2: an IMEX theater and a lot of opportunity to bring 110 00:06:18,760 --> 00:06:22,760 Speaker 2: that experience to more audiences across the country. But the results, 111 00:06:22,800 --> 00:06:26,520 Speaker 2: I would say speak for themselves. I mean, the box 112 00:06:26,560 --> 00:06:30,880 Speaker 2: office that this theaters generate is extremely healthy to date. 113 00:06:30,960 --> 00:06:34,960 Speaker 2: This year, for instance, iMX generated about forty million Australian 114 00:06:35,040 --> 00:06:38,400 Speaker 2: dollars in box office and last year full year was 115 00:06:38,440 --> 00:06:41,720 Speaker 2: about fourteen point three to fourteen point four, So we 116 00:06:41,760 --> 00:06:45,120 Speaker 2: are on track to really do much much better year 117 00:06:45,160 --> 00:06:48,040 Speaker 2: over year, and that's a good message. 118 00:06:49,120 --> 00:06:53,119 Speaker 1: That's quite extraordinary considering that it was only four years 119 00:06:53,120 --> 00:06:55,880 Speaker 1: ago so that the people were predicting pretty much the 120 00:06:55,880 --> 00:07:00,320 Speaker 1: death of the cinema entirely because of COVID, because of 121 00:07:00,360 --> 00:07:02,880 Speaker 1: the rise of streaming, and because of the cost of 122 00:07:02,920 --> 00:07:05,520 Speaker 1: living crosses people didn't want to go out and spend money. 123 00:07:05,680 --> 00:07:09,720 Speaker 1: But clearly there is something about the theater experience that 124 00:07:10,000 --> 00:07:12,680 Speaker 1: is in tossing people out of their homes and we're 125 00:07:12,680 --> 00:07:13,520 Speaker 1: willing to pay. 126 00:07:13,360 --> 00:07:16,440 Speaker 2: For it absolutely. Look, first of all, I've learned that 127 00:07:16,640 --> 00:07:19,120 Speaker 2: everybody has always predicted the end of cinema. 128 00:07:19,640 --> 00:07:22,680 Speaker 1: There's like newspapers and radio and every other every other 129 00:07:22,720 --> 00:07:25,840 Speaker 1: form of media is going to die. According to the Niceayas. 130 00:07:26,160 --> 00:07:28,960 Speaker 2: If you look at the headlines on some papers from 131 00:07:29,400 --> 00:07:32,360 Speaker 2: decades ago, first it was the advent of television. That 132 00:07:32,520 --> 00:07:35,680 Speaker 2: it was VHS, more recently it was streaming, Then it 133 00:07:35,720 --> 00:07:37,920 Speaker 2: was COVID, then it was the strikes, and yet again 134 00:07:38,280 --> 00:07:42,280 Speaker 2: the industry is still here, extremely resilient, exactly because people 135 00:07:42,840 --> 00:07:46,600 Speaker 2: like that shared communal experience. You can't replicate that at home, 136 00:07:47,440 --> 00:07:53,080 Speaker 2: So it's there and the demand is very, very healthy. 137 00:07:53,440 --> 00:07:56,080 Speaker 2: Of course it changed. I think consumers are getting more 138 00:07:56,080 --> 00:07:58,960 Speaker 2: and more demanding now, more than ever before. I think 139 00:07:58,960 --> 00:08:02,600 Speaker 2: they need a reason to get out of their very 140 00:08:02,640 --> 00:08:07,080 Speaker 2: comfortable living room with very big televisions and comfortable sofas, 141 00:08:07,680 --> 00:08:10,120 Speaker 2: and we give them that reason. It needs to be 142 00:08:10,200 --> 00:08:12,600 Speaker 2: a highly differentiated, highly special experience. 143 00:08:13,480 --> 00:08:15,040 Speaker 1: Is that why then it is to bring it back 144 00:08:15,080 --> 00:08:17,200 Speaker 1: to some of those filmmakers, Is that why it's so 145 00:08:17,240 --> 00:08:21,640 Speaker 1: important to have that close relationship, say with Avatar and 146 00:08:21,680 --> 00:08:23,640 Speaker 1: the new Avatar film, and you mentioned that we're trying 147 00:08:23,640 --> 00:08:28,600 Speaker 1: to get these theaters online in time for the third 148 00:08:28,640 --> 00:08:30,400 Speaker 1: Avatar film, which is coming out at the end of 149 00:08:30,440 --> 00:08:33,040 Speaker 1: the year, because those ones, they are blockbusters and to 150 00:08:33,080 --> 00:08:36,840 Speaker 1: an extent, they're almost kind of recession proof. Absolutely, Okay, 151 00:08:38,080 --> 00:08:41,720 Speaker 1: similar story in the US, is it the growth of 152 00:08:41,760 --> 00:08:44,520 Speaker 1: the industry, Is it kind of bouncing back post COVID? 153 00:08:45,080 --> 00:08:48,240 Speaker 2: Of course it is. There are nuancewers, I mean, everybody 154 00:08:48,280 --> 00:08:54,200 Speaker 2: knows about. It hasn't been an easy path in recent times, 155 00:08:54,679 --> 00:08:57,240 Speaker 2: and of course COVID was a hard hit on out 156 00:08:57,240 --> 00:09:00,240 Speaker 2: of all experiences and not just for cinem entertainment for 157 00:09:01,000 --> 00:09:05,120 Speaker 2: a lot more. And then came the strikes, which were another, 158 00:09:05,440 --> 00:09:11,800 Speaker 2: let's say, bump on this road. But no demand is there, 159 00:09:12,160 --> 00:09:15,800 Speaker 2: And what is particularly interesting for us is that demand 160 00:09:15,920 --> 00:09:20,760 Speaker 2: for a special experience and IMAX in particular, is there 161 00:09:21,160 --> 00:09:23,840 Speaker 2: more than ever before. Like we just had our most 162 00:09:23,840 --> 00:09:27,920 Speaker 2: successful third quarter ever in terms of box office in 163 00:09:27,960 --> 00:09:32,079 Speaker 2: the history of our company. iMX generated three hundred and 164 00:09:32,120 --> 00:09:36,079 Speaker 2: sixty seven million US dollars in box office and when 165 00:09:36,120 --> 00:09:39,720 Speaker 2: you look at our trends, so for example, in the 166 00:09:39,760 --> 00:09:44,160 Speaker 2: North American market generally box office was down eleven percent 167 00:09:44,400 --> 00:09:46,880 Speaker 2: year and year in Q three IMAX was up twenty 168 00:09:46,960 --> 00:09:50,520 Speaker 2: nine percent. That tells you that people are out there, 169 00:09:51,080 --> 00:09:55,439 Speaker 2: but they want something better, They want that incredible experience. 170 00:09:56,120 --> 00:09:59,480 Speaker 1: Okay, what about some of the broader threats to the industry. 171 00:09:59,559 --> 00:10:01,680 Speaker 1: And I don't whether you would class AI as a 172 00:10:01,679 --> 00:10:03,880 Speaker 1: threat to the industry or whether it is actually something 173 00:10:03,880 --> 00:10:06,480 Speaker 1: that is going to help it and kind of keep 174 00:10:06,559 --> 00:10:10,280 Speaker 1: costs down. But also we've heard a lot lately about 175 00:10:10,320 --> 00:10:15,000 Speaker 1: tariffs and the potential on again, off again almost tariffs 176 00:10:15,000 --> 00:10:18,200 Speaker 1: on foreign made films. That's something that has the potential 177 00:10:18,200 --> 00:10:21,680 Speaker 1: to really affect Australia because we have got very generous 178 00:10:21,720 --> 00:10:24,760 Speaker 1: tax incentives that have lured productions from the US and 179 00:10:24,760 --> 00:10:30,120 Speaker 1: elsewhere to Australia. Are these things going to affect the market? 180 00:10:30,320 --> 00:10:32,840 Speaker 1: Is a Is there a great deal of uncertainty at 181 00:10:32,880 --> 00:10:35,319 Speaker 1: the moment or is it just almost business as usual 182 00:10:35,440 --> 00:10:37,040 Speaker 1: until something changes. 183 00:10:37,800 --> 00:10:41,240 Speaker 2: I would see that there is a great deal of 184 00:10:41,320 --> 00:10:44,760 Speaker 2: uncertainty compared to other points in time. I think actually 185 00:10:45,720 --> 00:10:50,240 Speaker 2: film production is thriving at the moment and the upcoming's 186 00:10:50,320 --> 00:10:52,240 Speaker 2: lead is quite extraordinary. If you think some of the 187 00:10:52,320 --> 00:10:56,000 Speaker 2: titles are coming up in the next not just the 188 00:10:56,000 --> 00:10:59,880 Speaker 2: next year, but the next two to three years, a 189 00:11:00,200 --> 00:11:03,839 Speaker 2: very exciting array of content. Of course, there are always 190 00:11:03,880 --> 00:11:06,400 Speaker 2: some threats, but to your point, I don't think AI 191 00:11:06,520 --> 00:11:09,200 Speaker 2: is a threat. AI is a tool, and it depends 192 00:11:09,200 --> 00:11:11,520 Speaker 2: on how you want to define AI. But it has 193 00:11:11,559 --> 00:11:15,439 Speaker 2: been used in film production for a long time. If 194 00:11:15,480 --> 00:11:18,720 Speaker 2: you think some of the tools used for special effects, 195 00:11:19,120 --> 00:11:21,400 Speaker 2: and as you say, in other parts of the industry, 196 00:11:21,440 --> 00:11:27,360 Speaker 2: AI can help building efficiencies. So on the tariff topic, 197 00:11:28,000 --> 00:11:32,400 Speaker 2: sometimes they smile because we operate in about ninety countries 198 00:11:32,400 --> 00:11:36,439 Speaker 2: and territories and there are always been tariffs all over 199 00:11:36,480 --> 00:11:40,440 Speaker 2: the world. So we have developed an expertise and an 200 00:11:40,440 --> 00:11:46,880 Speaker 2: infrastructure to deal with those nuances. And it's I wouldn't 201 00:11:46,880 --> 00:11:51,840 Speaker 2: say it's it's not and will never be a threat, 202 00:11:51,960 --> 00:11:54,880 Speaker 2: but we are very geared to tackle them. 203 00:11:55,880 --> 00:11:59,480 Speaker 1: I need to ask you because you have an economics background, 204 00:11:59,520 --> 00:11:59,920 Speaker 1: is that right? 205 00:12:00,520 --> 00:12:03,120 Speaker 2: I have a degree in economics and business ability. 206 00:12:03,160 --> 00:12:04,960 Speaker 1: How do you end up how do you end up 207 00:12:05,000 --> 00:12:06,640 Speaker 1: working in the film industry, which has got to be 208 00:12:06,720 --> 00:12:09,280 Speaker 1: one of the most exotic industries around. How did you 209 00:12:09,360 --> 00:12:13,760 Speaker 1: go from from an economics degree into into I'm accent film. 210 00:12:14,040 --> 00:12:16,040 Speaker 2: You know, I'm glad you were asking me that because 211 00:12:16,760 --> 00:12:20,199 Speaker 2: it involves this part of the world. I graduated in 212 00:12:20,280 --> 00:12:23,000 Speaker 2: Milan and then I had a friend who was in 213 00:12:23,040 --> 00:12:27,400 Speaker 2: New Zealand and she told me, you know what, you've 214 00:12:27,400 --> 00:12:30,160 Speaker 2: always been interested in entertainment, why don't you come over? 215 00:12:30,200 --> 00:12:33,200 Speaker 2: There is a lot happening here. So I found myself 216 00:12:33,240 --> 00:12:36,520 Speaker 2: spending some time in Wellington and then I ended up 217 00:12:36,559 --> 00:12:40,480 Speaker 2: moving there for a period of time. I met some 218 00:12:41,080 --> 00:12:45,320 Speaker 2: great people in the industry that the sector was booming 219 00:12:46,400 --> 00:12:48,959 Speaker 2: off the back of all the successes like Lord of 220 00:12:48,960 --> 00:12:52,560 Speaker 2: the Rings, and I got a job in film financing 221 00:12:52,840 --> 00:12:56,640 Speaker 2: trying to get a few projects funded, and that was 222 00:12:56,720 --> 00:12:59,319 Speaker 2: my start in this incredible industry. 223 00:12:59,600 --> 00:13:02,160 Speaker 1: It is a fascinating space. GEO, thank you for talking 224 00:13:02,200 --> 00:13:02,880 Speaker 1: to Fear and Greed. 225 00:13:03,160 --> 00:13:03,840 Speaker 2: Thank you, Michael. 226 00:13:04,000 --> 00:13:07,200 Speaker 1: That was Giovanni Dolci, chief commercial officer at Imax. If 227 00:13:07,200 --> 00:13:08,840 Speaker 1: you've got something that you'd like to know, then send 228 00:13:08,880 --> 00:13:12,479 Speaker 1: through your question on LinkedIn, Instagram, Facebook, or at Fearandgreed 229 00:13:12,559 --> 00:13:15,200 Speaker 1: dot com dot au. I'm mirkl Thompson and this is 230 00:13:15,200 --> 00:13:16,240 Speaker 1: Fear and Greed Q and a