LF Examiner

LF Examiner

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Posted 10/16/08. Originally published in LF Examiner, October 2008. Update 5/22/09 See a detailed map of North American IMAX theaters by projector type and screen size here . An editorial by James Hyder , Editor/Publisher In April 1985, the CEO of Coca Cola held a press conference in New York City to announce that the company was changing the century-old formulation of its famous soft drink. The new version was officially given the “Coca Cola ” name, and production of the original formula was halted that week. The new soda, which became widely (but unofficially) known as “New Coke, ” had received favorable reactions in taste tests and focus groups. But ultimately, millions of customers, angered that the company would suddenly change the product it had labeled “The Real Thing, ” pressured it to reintroduce the original flavor. The company hurriedly returned it to store shelves less than three months later, re-branded as “Coke Classic. ” Coke executives were widely ridiculed for underestimating their customers ’ devotion to the brand and for their perceived highhandedness in tinkering with a classic. In September 2008, Richard Gelfond, co-CEO of Imax Corporation , told members of the Giant Screen Cinema Association that “we don ’t think of [IMAX] as the giant screen. ” Rather, he said, “it is the best immersive experience on the planet. ” The company takes this position because it has chosen not to differentiate its new digital projection system in any way from the 15/70 film systems it has been installing in giant-screen theaters since 1970. This despite the fact that, according to Imax VP Larry O ’Reilly, its two major digital partners, AMC Entertainment and Regal Entertainment Group , both originally wanted to brand the new screens as “IMAX Digital. ” And based on the reaction Gelfond ’s announcement received in New York (and on many conversations I ’ve had since) many, if not most, institutional IMAX operators would prefer this as well. In short, virtually all of Imax ’s customers and partners would like to see a distinct new identity for the digital system. But Gelfond flatly rejected this possibility, offering an absurdly flawed analogy with BMW automobiles. He said that the German carmaker offers the 7-series line of larger, more powerful, luxury models as well as the smaller, entry-level 3-series cars. “People don ’t say ‘The 3 isn ’t a real BMW because it ’s smaller. ’ ” Of course, this ignores the fact that the model numbers, to say nothing of the prices, clearly distinguish BMW ’s different product lines in consumers ’ minds, while maintaining the unity of the brand. No car buyer believes he has bought a $125,000 760Li only to receive a $30,000 328i. Yet this is the position in which Imax is now putting customers who pay $15 to see films at (for instance) New York City ’s AMC Empire 25 IMAX digital theater, with its 28x58-foot (8.5x18 meter) screen.

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