Kodak (News - Alert), or more legally known as Eastman Kodak Co., has entered into an agreement with Imax Corp. to license their technology and gain some necessary cash to stave off bankruptcy.
According to reports, Kodak will receive a payment of $10 million in cash up front. The 10-year deal helps Kodak narrow a cash shortfall and advances a goal of generating $250 million to $350 million in revenue this year from licensing intellectual property. The company said on Sept. 30 that it has “no intention” of filing for bankruptcy.
“This Kodak intellectual property is truly cutting edge, and will be used by IMAX's esteemed Technology Group to enhance the cinematic experience for consumers, enable the application of digital technology in our larger and institutional theatres, and make being in business with IMAX even easier and more profitable,” said IMAX CEO Richard L. Gelfond in a release. “It is a testament to Kodak's strong heritage in film and tradition of excellence that we believe this deal further differentiates IMAX in terms of innovation and technological advancement in large-screen cinematic experiences.”
Imax expects to introduce the new laser-projection technology by the second half of 2013, which will provide the company's largest screen and dome . The deal will also help Imax save costs of delivery in distributing content with greater efficiency to the company's global theater network. A film delivery in digital format will only reportedly cost the company about $150, while the cost of delivering a typical film print costs about $30,000.
“We are delighted to be licensing our technology to a company as innovative as IMAX,” said Kim Snyder, president of Entertainment Imaging, and vice president of Eastman Kodak Company. “Because this technology produces the deepest blacks, and the brightest 3D of any system demonstrated to date, it will truly make the movies more exciting for consumers, and that creates a strong value proposition for the studios and exhibitors as well. That's the ultimate measure of this relationship. We look forward to working with the IMAX team to make this vision a reality.”
Kodak engineers will work closely with Imax over the next 18 months to assist with the implementation of the technology, Imax said.
Michelle Amodio is a TMCnet contributor. She has helped promote companies and groups in all industries, from technology to banking to professional roller derby. She holds a bachelor's degree in Writing from Endicott College and currently works in marketing, journalism, and public relations as a freelancer.
Edited by Jennifer Russell
