IMAX Corp. said it acquired streaming video technology company SSIMWave for $21 million.

IMAX said the deal will enable it to deliver higher-quality video images on any screen, providing new revenue opportunities and bolstering its position in entertainment technology. 

Through its SSIMPlus products, SSIMWave helps the streaming industry solve video quality problems, earning it Emmy and NAB awards. SSIMWave’s technology — which uses artificial intelligence to replicate the human eye — helps services assess video quality at sale, minimize drop-offs and reduce distribution expenses.

“SSIMWave is doing revolutionary work at the intersection of human visual perception and image enhancement technology. By putting the power of our global brand behind their award-winning engineering team and product suite, IMAX takes a big step toward a new horizon in our ability to deliver the best images for any creator, across every screen,” said IMAX CEO Rich Gelfond. “In the near-term, SSIMWAVE brings to IMAX new, SaaS-based revenue and a world-class client roster that tightly aligns with some of our strongest, most successful content partnerships.”

Four of the world’s top-ten streaming media companies — including The Walt Disney Co., Paramount Global and Warner Bros. Discovery — currently work with with SSIMWave to optimize video. Many of those are also among IMAX’s long-standing content partners.

The acquisition is expected to be accretive in 2023 and have no material impact in 2022, IMAX said. 

“Viewers and content creators expect more from video experiences. By joining IMAX, SSIMWAVE will be even better positioned to preserve creators’ intent and enable engaging, differentiated viewing experiences to millions of users across platforms,” said Dr. Abdul Rehman, CEO of SSIMWave. “We’re excited to join IMAX and tap into its global scale and expertise as more streamers turn to SSIMWave to ensure the best viewing experiences while reducing bandwidth costs.”

Under terms of the agreement, SSMIWave’s owners can receive a $4 million earnout based on the unit’s operating and financial performance.

Rehman will continue to run SSMIWave as a subsidiary of Imax. All of the company’s other founders, management and executives will remain after the acquisition is complete, SSIMWave said. 

SSIMWave was founded at Ontario’s University of Waterloo in 2013, based on the structural similarity algorithm for assessing visibility errors. The company has raised $1.6 million in equity financing, with the last round occurring in June 2019. The company has 11 equity investors, plus Fed Dev, which provided a $4.2 million (Canadian) interest-free loan. 

Investors include the University of Waterloo, OCI and Wilfrid Laurier University & Garage Capital. ■

In the global technology-media-telecom sector, you're always one or two bad earnings reports away from contrition, and a box-office smash or two from bellicose bombast. 

Count IMAX CEO Richard Gelfond in for the latter. 

Coming off an impressive $450 million global box-office opening for Disney-Marvel's Doctor Strange in the Multiverse of Madness, $18 million of which was made at 410 IMAX locations, Gelfond used an interview with Yahoo Finance to pile onto downed giant Netflix. 

Gelfond said he wasn't at all surprised to hear about Netflix's bummer Q1 earnings report, which sent the company's market cap down 35%. Netflix, Gelfond believes, found out the hard way that it needs the promotional power of the theatrical window to profit off its $17 billion content budget. 

"The theatrical window, particularly IMAX, builds buzz around a property and it creates a cultural event on a global scale. And thinking you could do that and create that kind of excitement without a theatrical release was silly," Gelfond said. 

"As a matter of fact," Gelfond added, "one of the major streamers just told me ... that on streaming, things do better with an exclusive theatrical release. So forget about the money that you're making from the theatrical window, just on streaming, more subscriber, more attention, all things like that — because the theatrical experience really creates an event, particularly the IMAX experience."

Even assuming that Gelfond's narrow premise is correct -- the complex set of market conditions driving down Netflix's growth could be distilled to just a lack or consumer awareness for its movies -- requires a stretch. 

Here's an example as to why:

Plying the average North American movie ticket price to the global market, the latest Dr. Strange generated a weekend audience of around 41 million viewers worldwide.

With comparatively negligible "prints & advertising" costs, Netflix was able to generate a global first-three-days audience for its biggest movie of 2022, Ryan Reynolds comedy-action film The Adam Project, of around 52 million viewers.  

Disney Plus will add to its lineup of Marvel Studios-produced films when it premieres Eternals on Jan. 12. 

The film, which debuted in movie theaters on Nov. 5 and garnered a reported $157 million at the U.S. box office, follows a group of mystical heroes protecting the Earth since the dawn of man who reunite to defend the planet against a group of monstrous creatures called the Deviants. The movie stars Gemma Chan, Angelina Jolie, Brian Tyree Henry, Lia McHugh, Lauren Ridloff, Barry Keoghan, Don Lee, Kit Harrington and Salma Hayek. 

Eternals joins 13 other Marvel Cinematic Universe movies now streaming in IMAX's expanded aspect ratio for home viewing on Disney Plus, according to the service.  

Disney Plus will be streaming 13 Marvel movies in Imax’s expanded aspect ratio for home viewing as part of Disney Plus Day on Nov. 12.

The films include the recently released Shang-Chi and The Legend of the Ten Rings, Avengers: Endgame and Iron Man.

“Disney, Marvel Studios, and Imax have collaborated for years to bring the world’s most popular films to the big screen, and on Friday we’ll start to bring Imax technology to subscribers with Imax Enhanced viewing in the Disney Plus app,” said Michael Paull, president of Disney Plus and ESPN Plus. “We’re thrilled to create new value for Marvel fans and audiences on Disney Plus, and we’re looking forward to offering even more Imax Enhanced functionality in the future.”

Disney Plus subscribers will get a 26% bigger picture for some sequences and enhanced video and sound from DTS.

“For more than a decade, Imax has helped filmmakers take fans across the Marvel Cinematic Universe in theaters and now that epic journey crosses into a new world: the home,” said Rich Gelfond, CEO of Imax. “Imax, Disney, and Marvel Studios are giving the fans what they want: the most immersive viewing experience throughout the life of a Marvel Studios film, from exclusive theatrical release to the library at-home where they can now watch the Avengers assemble with more picture than ever before.”

Disney said Disney Plus is the first streaming service to provide Imax Enhanced features at home. Avengers: Infinity War and Avengers: Endgame were the first films shot entirely with Imax digital cameras. 

“We are thrilled that fans of the MCU will soon have the opportunity to experience Imax’s Expanded Aspect Ratio, in their own homes with the launch of Imax Enhanced on Disney Plus,” said Jon Kirchner, CEO of Xperi. “DTS is proud to be an integral part of Imax Enhanced and we are looking forward to unlocking more exciting technology for Disney Plus subscribers in the future, which will include immersive Imax signature sound by DTS.”

The 13 films from Marvel Studios that will be available in the Imax format are ’ Shang-Chi and The Legend of The Ten Rings, Iron Man, Guardians of the Galaxy, Guardians of the Galaxy Vol. 2, Captain America: Civil War, Doctor Strange, Thor: Ragnarok, Black Panther, Avengers: Infinity War, Ant-Man and The Wasp, Captain Marvel, Avengers: Endgame and Black Widow. 

The Walt Disney Co. said Disney Plus Day on Nov. 12 will feature new content releases, fan experiences and exclusive offers.

Marking its first big move into VR, Nickelodeon has teamed with IMAX on SlimeZone, a multi-player virtual reality game/experience that will be offered at IMAX VR centres around the world.

Nickelodeon referenced that VR-facing partnership as part of its upfront presentation earlier this week.

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SlimeZone, developed in the Nickelodeon Entertainment Lab, lets up to six players pick an avatar to enter a Nickelodeon-designed digital world to play games, such as ping-pong, watch cartoons and “slime” their friends.

The SlimeZone is initially being sold at IMAX VR Centres in Los Angeles, New York City and Toronto, and is slated to launch “soon” at centers in Shanghai, Bangkok and Manchester (U.K.).

“Our SlimeZone partnership with IMAX lets kids and families interact with Nickelodeon properties and characters by bringing them to life in new and innovative ways,” Cyma Zarghami, president of Nickelodeon Group, said in a statement. “This new VR experience will also show the creative community how we are using technology to create unique forms of entertainment for all ages.”

SlimeZone, which debuted at VidCon US 2017, was built using Epic’s Unreal Engine and Nvidia FleX particle system for “slime simulation.”  

Watch this video promo for SlimeZone:

Netflix will premiere its first original movie, Crouching Tiger, Hidden Dragon: The Green Legend in summer 2015 simultaneously with the film’s theatrical release, the over-the-top video service announced Monday.

The movie, a sequel to the popular 2000 martial arts film, will debut on Netflix as well as in selected global IMAX theaters on Aug. 28, said company officials. The film, produced by the Weinstein Company, will star Michelle Yeoh reprising her role as Yu Shu-Lien, as well as Donnie Yen (Ip Man 1&2, Monkey King 3D) as Silent Wolf.

Crouching Tiger, Hidden Dragon: The Green Legend will be directed by martial arts choreographer Yuen Wo-Ping (The Matrix Trilogy and Kill Bill 1&2), said Netflix.

 “Fans will have unprecedented choice in how they enjoy an amazing and memorable film that combines intense action and incredible beauty,” said Netflix Chief Content Officer Ted Sarandos. “We are honored to be working with Harvey Weinstein and a world-class team of creators to bring this epic story to people all over the world and to partner with IMAX, a brand that represents the highest quality of immersive entertainment, in the distribution of this film.”