Deal dramatically expands 3D company's footprint
RealD has reached a deal to dramatically expand its footprint in Russia, the 3D company said Thursday.
Under the pact, RealD will install 3D technology in up to 200 cinema screens operated by Cinema Park and will outfit 10 Luxe auditoriums through a separate deal with another Russian exhibitor, Karo Cinemas. Luxe is RealD's large screen format. It is an alternative and rival to IMAX's vast screens.
The announcement comes on the heels of the box office success of “Gravity,” which drew 80 percent of its $55.6 million domestic opening weekend from 3D screens and 70 percent of its $23.7 million foreign opening from the format.
It also comes at a time when Russia is becoming an increasingly important market for Hollywood films. In 2012, total box office in the country hit a record $1.33 billion, an 18.8 percent jump from the previous year.
The pact with CinemaPark will finish up in five years, while the Karo deal is expected to be completed by the second quarter of next year. Financial terms of the deals were not disclosed.
“Russian moviegoers continue to show a real passion for premium quality cinema, and this agreement highlights our commitment to this growing audience,” Robert Mayson, managing director of RealD Europe, said in a statement.
RealD shares closed Wednesday flat at $6.44 a share.