Wednesday, November 28, 2012

SENGUL Metin, VENINO Alexander T., GIMENO Javier
IMAX (parts A and B)
©2012 INSEAD Case Study

Case A reviews the history of IMAX Corporation from its founding until the introduction of Digital Media Remastering (DMR) technology in 2002. Since its founding, IMAX had struggled to achieve sustainable, profitable growth. The case explores IMAX's difficulties in attracting movie studios and theatres to its platform. Case B describes the changes in the ecosystem implemented after DMR, and the resulting performance.

Pedagogical Objectives: The cases allow discussion of the initial failure of an ecosystem platform to achieve sustainable, profitable growth due to its unappealing value proposition towards complementors. They also allow analysis of strategies for two-sided markets in the presence of cross-side network effects, before and after a major technology change.