GETTING THE BIG PICTURE MORE MAINSTREAM HOLLYWOOD RELEASES ARE ON THEIR WAY, VIA THE IMAX FORMAT.

Byline: Greg Hernandez Staff Writer

IMAX Co-Chairman and CEO Richard Gelfond has every reason to feel like he's on top of the world.

Relaxing on a sofa inside of his 30th-floor suite at Bally's Paris last month, Gelfond had just a few hours earlier stood before a packed ballroom of theater owners at the annual ShoWest convention in Las Vegas. He was touting a summer schedule that includes giant-screen versions of ``Harry Potter and the Prisoner of Azkaban'' and ``Catwoman,'' starring Halle Berry.

``We are getting huge word of mouth,'' Gelfond said. ``In a way, IMAX has become a new way to see a movie.''

Once known mainly for its educational films, IMAX is fast becoming more of a mainstream player in the film industry, with several major studios now doing business with the Toronto-based company that showcases films on screens eight stories high and 120 feet wide.

In fact, Gelfond's appearance at ShoWest happened to come as IMAX was experiencing the biggest box office opening for one of its original films ever. ``NASCAR 3D: The IMAX Experience'' opened in 11th place - unprecedented for an IMAX release. The film has remained in the top 20 for four straight weeks and earned $6.3 million to date, especially impressive since it is playing on just 70 screens compared with the 2,000-plus screens for most major wide releases.

``NASCAR'' benefited from such famous drivers as Jeff Gordon and Dale Earnhardt Jr. publicizing the film, including a high-profile appearance on ``Larry King Live.'' At a test screening for the film, 45 percent of the fans had never been to an IMAX theater.

``With (``NASCAR''), we really penetrated a key base of the sports public,'' Gelfond said. ``The hope is that this will bring them back to see some of our other titles.''

The company is not only creating its own more commercial fare like ``NASCAR,'' but it has made increasing use of its DMR process, which allows for a movie to be enlarged for an IMAX screen without compromising picture quality.

The economics for these films are becoming more and more attractive for studios and exhibitors, since the cost of converting a film to the IMAX format is $2 million to $4 million.

As a result, IMAX was able to team with Warner Bros. last year to release ``The Matrix Reloaded'' and ``The Matrix Revolutions'' on IMAX screens. ``Revolutions'' made movie industry history by becoming the first live-action feature film to open on IMAX screens and in conventional theaters on the same day. This followed well-received giant-screen versions of ``Star Wars: Episode II - Attack of the Clones'' and ``Apollo 13.''

What has made the studios all the more enthusiastic is that the IMAX versions of their films have not hurt the regular box office returns of a title, even if they are released on the same day in both formats.

``Our numbers studies show that IMAX does not cannibalize but actually maximizes revenue,'' Gelfond said.

Disney has also been a steady partner, with IMAX versions of ``The Lion King,'' ``Beauty and the Beast'' and ``Fantasia 2000.'' Disney also recently released ``The Young Black Stallion'' specifically for the giant screen and this month launches ``Sacred Planet.''

``The IMAX audience has broadened considerably with the introduction of more so-called Hollywood films in the format,'' said theater owner John Loaks. ``When Disney puts out 'The Lion King' and 'Beauty and the Beast,' you see a lot of parents with their children. When Warner Bros. brought in 'Matrix,' you saw teenage and college audiences that have not been a traditional part of IMAX audience. They loved the format and kept coming back.''

Loaks, who owns eight theaters (totaling 104 screens) in west and central Michigan, has two IMAX theaters and hopes to attract 250,000 patrons a year to each of them.

In all, there are 240 IMAX theaters in 35 countries worldwide.

Last year, the IMAX Corp. reported its first profitable year since 1999, which is largely attributed to the DMR process. Fans have so far been willing to pay the extra $3 or so that it costs to see a new release on the giant IMAX screen, with its 12,000 watts of surround sound.

``What IMAX is doing that is so smart is they are still making their core business of documentary-style films like 'NASCAR' but also doing things like using their technology to enhance the presentation of selected dramatic films,'' said box office analyst Paul Dergarabedian, president of Exhibitor Relations Co. ``The numbers on 'NASCAR' show the viability and continued strength of the IMAX format.''

Greg Hernandez, [phone]

greg.hernandez(at)dailynews.com

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2 photos

Photo:

(1 -- color) Ron (Rupert Grint), Hermione (Emma Watson) and Harry (Daniel Radcliffe) return in ``Harry Potter and the Prisoner of Azkaban,'' to be released in the IMAX format this summer.

(2 -- color) There is no competition, such as here in ``NASCAR 3D,'' between IMAX and regular theaters. Numbers show both formats do well with moviegoers.