The collaboration between IMAX (NYSE:IMAX) and Dolphin Entertainment (NASDAQ:DLPN) is set to see its first release with "The Blue Angels," the first of many productions resulting from their multi-year agreement. Can it help boost the Dolphin Entertainment and IMAX stock?
The documentary is set to hit theaters and Amazon (NASDAQ:AMZN) Prime, and coupled with the involvement of industry heavyweights such as J.J. Abrams', it marks a solid milestone for Dolphin Entertainment.
IMAX and Dolphin Entertainment Partnership
In May 2022, IMAX Corporation and Dolphin Entertainment entered into a multi-year agreement to jointly finance the development and production of a number of feature-length documentaries to be shown to the global market.
The partnership was seen as a significant milestone for Dolphin, as it marked the beginning of a new revenue-generating venture.
The Blue Angels was originally slated for release in 2023 but is now set to be shown in theaters and on Amazon Prime this May.
In an exclusive interview with Investing.com, Dolphin Entertainment CEO Bill O'Dowd said the deal is “extremely unique” for Dolphin for several reasons.
“Firstly, we are in a 50/50 deal with IMAX, which means that Dolphin and IMAX are equally co-funding projects,” he stated. “This is strategic because we are co-producing documentary films that have a guaranteed theatrical release with IMAX – that is typically unheard of in the documentary film industry.”
Furthermore, O’Dowd revealed that Dolphin has the opportunity to secure significant revenue on the projects before they even reach theaters by selling the streaming rights, “which is what we did with The Blue Angels and Prime Video.”
“All content creates a recurring revenue stream for years to come, but this is especially true for our documentaries with IMAX,” he added. “The Blue Angels will play in IMAX ‘institutional’ theaters starting in 6 months, which we anticipate will serve as an annuity for 10+ years.”
“The Blue Angels” Documentary - The First of Many
The Blue Angels documentary provides an inside look into the world of the U.S. Navy's renowned Flight Demonstration Squadron. It spans a year from the selection process through their demanding show season.
It is said to be the first of many, with O'Dowd telling us that they “have a few very exciting projects in the works.”
“While we don’t want to give away our secrets, IMAX and Dolphin are aiming to announce our next project together very soon,” he added.
When it comes to the streaming deal with Amazon, O’Dowd said they are “thrilled to have Amazon as a partner on The Blue Angels release” and will seek out a streaming partner for all their documentary releases, although Amazon’s involvement is not guaranteed for all of the projects.
Even so, he stated they really enjoyed working with the Amazon teams on this project “and will undoubtedly look to work with them again as “they’ve been fantastic.”
JJ Abrams's Bad Robot - Where Does It Fit?
The Blue Angels is being produced by Academy Award-winning producer Glen Zipper of Zipper Bros Films, Mark Monroe, JJ Abrams’s Bad Robot Productions, and many more.
J.J. Abrams involvement is particularly noteworthy given that his Bad Robot Productions is a prominent film and television production company, best known for hit series such as "Alias," "Lost," "Fringe," "Person of Interest," and "Westworld."
"Lost," in particular, became a cultural phenomenon and was praised for its unique narrative structure and deep character development. On the film front, Bad Robot Productions has been involved in several blockbuster franchises and stand-alone movies. It played a significant role in rejuvenating the "Star Trek" franchise with a series of films starting in 2009.
Furthermore, Bad Robot produced entries in the "Mission: Impossible" series and was instrumental in the continuation of the "Star Wars" saga, with J.J. Abrams directing "The Force Awakens" and "The Rise of Skywalker."
In addition to its film and television productions, Bad Robot has ventured into digital content, gaming, and music, aiming to expand its creative footprint.