RealD and Wanda ink deal for big 3D push in China
Chinese movie theater giant Wanda Cinema Line is making a big push for 3D cinema technology in a deal with Beverly Hills company RealD to equip 4,000 screens with its projection systems.
The deal, announced Monday, would be the largest 3D installation agreement in the history of the cinema business, according to RealD and Beijing-based Wanda, a subsidiary of Dalian Wanda Group.
The latest pact represents a significant expansion for RealD, which has 1,600 3D screens with Wanda -- China’s biggest cinema chain.
The additional 4,000 RealD systems that will be installed during the next four years as part of the deal will grow RealD’s Wanda-based footprint to 5,600 screens.
RealD is hoping to capitalize on the fast-growing film business in China, which is expected to soon surpass the annual box office in the U.S. and Canada as the world’s biggest movie market. Chinese audiences have a strong appetite for 3D movies, said Xiaobin Liu, executive president of Wanda Cinema Line, in a statement.
“Our RealD-equipped theaters have been a significant part of our growth strategy,” the executive said.
Founded in 2003 and led by Chief Executive Michael Lewis, RealD is one of the world’s biggest providers of 3D cinema equipment and glasses. Its systems are used in about 28,000 screens worldwide.
Nonetheless, the company struggled in recent years as the popularity of 3D viewing waned. Last year RealD agreed to be acquired by private equity firm Rizvi Traverse Management and Lewis for $551 million.
Wanda also owns AMC Entertainment, the second largest U.S. exhibitor, which is trying to buy rival Carmike Cinemas.
Follow Ryan Faughnder on Twitter for more entertainment business coverage: @rfaughnder
From the Oscars to the Emmys.
Get the Envelope newsletter for exclusive awards season coverage, behind-the-scenes stories from the Envelope podcast and columnist Glenn Whipp’s must-read analysis.
You may occasionally receive promotional content from the Los Angeles Times.
