RealD (NYSE:RLD) - Rivalry with Imax

Denver, CO, 07/15/2013 (Avauncer.com) – Shares of RealD (NYSE:RLD) plunged by 9.92% to close at $12.17 in the last trading session. Shares remained close to the lower end of their 52-week price range of $8.57 to $16.05. However, shares were thinly traded, with only 1.16 million shares exchanging hands, while the average volume of shares traded remains at 309,387 shares.

The stock price crashed after it has been reported that the company’s films have generated only $291 million at global box offices in June, much lower than the amount expected by analysts. The RealD’s box office results are down 10% in the quarter vs. the same period of the last year. The reason of the downgrade rests on the fact that consumers might have lost their interest in 3-D movies, as they might have become choosy about what they watch in the format since the prices are higher. It has also been figured out that sales have been decreasing because the theaters had too few 3D screens.

RealD is leveraging its brand with the introduction of a new brand called LUXE: A RealD Experience. RealD detailed its strategic plans by providing standards for premium, large format experience in both 2D & 3D. The branding and standards will move to a similar to that of the IMAX platform. Auditoriums will meet minimum technology specifications equipped with the new experience to assure a premium cinema experience such as usage of RealD 3D’s projection technology. RealD will combine the exhibition community under one brand name with one set of industry technology standards. RealD has already taken the initiative to sign an agreement with Karo Films in Russia and with Arena Cinemas in Bulgaria, to install new large format Screens. RealD is expecting to sign more deals in the near future in the US and Europe.

Around 68 countries are experiencing RealD’s 3D cinema technology which is installed in about 22,700 screens.