IMAX CEO Responds to Aziz Ansari’s Rant

Published by Jeff Leins on May 13, 2009

Yesterday a rant on Aziz Ansari’s blog sparked a firestorm of backlash on the Internet against the Imax Corporation.  Ansari, one of the cast members of the new TV show “Parks and Recreation,” uncovered what he called “Fake IMAX” theaters charging extra for admission (roughly $5) for an “IMAX Experience,” only to trick customers into a regular-sized theater.

Since 1973, IMAX has made a name for themselves with massive 72 ft. screens (almost 3 times the average) in special venues.  With bigger screens and bigger prices, the company took those profits and in 2008 expanded to average-sized theaters across the country by branding digital projection also as an “Imax Experience” with literally no distinction between the two.  They basically lied.  Regal and AMC are two theater chains that bought into this false advertising because the new technology allows them to charge “premium pricing” for the usual tickets.

In reality some customers are purchasing an IMAX ticket thinking they’re walking into a unique event, only to be in the same old room with a different projector in the back.  Sure, if you put the two images side-by-side you might be able to pick out the clearer image, but most moviegoers couldn’t tell you what their extra $5 does for them other than a lighter wallet.  What’s worse is digital projection and 3-D are quickly becoming the future of theatrical entertainment, which means the already high ticket prices will receive the additional “premium” bump indefinitely rather than theater chains using the technology to lure customers into theaters over emerging formats like on-demand, streaming video, or digital downloads.

A Company Out of Touch with Consumers
Since IMAX’s digital roll-out isn’t even a year old, angry customers like Ansari who feel duped are just now being heard.  Immediately following his rant, blogs went ballistic and joined in the fight against IMAX, calling for boycotts and demanding answers.

The company’s CEO, Richard Gelfond, responded to Ansari today:
The overwhelming majority of comments on [Aziz Ansari]’s blog this morning, more than 90% of them, are vehemently disagreeing with him. And consumers are confirming this with their continued purchases of tickets.

After skipping through the over 900 comments on Ansari’s blog, 90% is the most outrageous figure IMAX has defended itself with.  If anything, the numbers skew in the opposite direction with customers emerging with identical stories, not to mention the countless other blogs running similar rants.  Rather than address the issue, Gelfond dismisses Ansari and the mobs of people who agree with him by citing figures to Street.com.

The CEO (who had to answer to investors this morning) trumpets the increasing box office millions and percentages.  Star Trek broke the IMAX record with $8.5 million last weekend, beating out The Dark Knight’s previous $6.3 million.  However, on further inspection you might notice the screen numbers jump from 94 to 138, which might explain the extra $2.2 million but not how many of those theaters are fitted with the traditional 72 ft screen.  72 of the 138 are the smaller screen.

Unfortunately with as many facts as the CEO throws around, the Imax Corporation isn’t willing to provide the important facts to moviegoers.  Gelfond simply says, “Imax is Imax” and has no plans to re-brand the digital theaters to give a clear picture of what they’re purchasing.  Not surprising considering the company is under an ongoing SEC investigation and class-action investor lawsuits for shady accounting practices.

Another element that isn’t being discussed and is entirely “Imax” is a widespread complaint about being too close to the screen.  The Bob Bullock Museum theater here in Austin is a perfect example of rows of seats almost on top of the screen.  That’s perfect when the camera is gliding over images of the Grand Canyon, but it’s difficult to follow the frantic motion of action movies when you’re head is on a swivel.

It looks like we’re all S.O.L. in this one too.  According to the Hollywood Reporter, Gelfond told investors this morning Imax has patented the ability to remove the first four rows of seats in an auditorium to bring a multiplex screen closer to an audience.  Fantastic, now you’ll pay a premium for the theater’s brand new digital projector on a regular screen that is too close.

Since Imax is being deliberately deceptive about their format, it’s up to you as the customer to educate yourself about theaters in your area and decide which company you want to support when you go to the movies.  You can start with the LF Examiner’s revealing 2008 story.