On Monday, AMC (AMC) - Get Report made a deal to acquire the European cinema chain Odeon & UCI Cinemas Group from private equity firm Terra Firma for a cool $1.2 billion in cash and stock. The chain was sold at what was "an amenable, opportunistic pricepoint due to Brexit," according to Daniel Loria, editorial director at BoxOffice Media. It is estimated that AMC saved more than $100 million by making this acquisition after the U.K. voted to leave the EU.

But the acquisition may spell bad news for IMAX (IMAX) - Get Report , as AMC's expansion of premium movie-going experiences may make the marketplace more competitive for the large-screen corporation.  

AMC CEO Adam Aron called the deal a "once in a generation opportunity to acquire Europe's leading cinema chain and create the world's biggest and best theater operator." Once the ink is dry, AMC, a subsidiary of Wang Jianlin's Dalian Wanda Group Co., will control more than 7,600 screens. That number could grow even higher if AMC seals the deal with Carmike Cinemas, but the fate of that acquisition will remain up in the air until Carmike's shareholder vote on Friday. The shareholders will decide whether or not to accept AMC's $1.1 billion, $30-a-share purchase.

However, the bragging rights of becoming the world's largest theater chain are not all that AMC is after. "The deal is more about expanding the AMC recliner model, enhanced food offerings and technology to the circuit," Stifel Research analyst Benjamin Mogil recently told Deadline.

Indeed, AMC's new amenities were recently outlined in AMC's investor presentation at CinemaCon in April. Other innovations include mobile ordering for food and beverage, premium large-format auditoriums separate from IMAX and reserved seating.

"AMC has been able to differentiate itself by offering premium experiences across the line," says Loria. "They are letting customers experience the movie they want at the price-range they want."

With premium moviegoing options rapidly multiplying, the most recognizable premium cinema brand may be in danger of losing some of its luster. IMAX is the largest name right now in enhanced moviegoing, but with such exhibitors as AMC investing in their own premium large-format theaters, the corporation may have to start worrying about an oversaturation of the market.

"IMAX is no longer going to be the only player in town," says Loria. "Exhibitors are adopting the private-label premium large-screen format, which means no licensing fee and that the chains can now curate themselves."

IMAX shares opened at $29.23 on July 13, down over 21% year-over-year. IMAX grosses this summer have not been particularly impressive, and investors may already be wary of the large increase in the near future of premium moviegoing options. The installation of private large format theaters by major exhibitors would be a major blow to the corporation.

Indeed, privately owned premium screens could do away with the IMAX 3D glasses, which many domestic audiences have soured on. And even in places where the IMAX business is booming, such as China, the corporation has to contend with other major  premium large format (PLF) players. The company China Film Giant Screen controls more than 50 premium screens, and the Chinese exhibitor Poly Film recently released its own PLF brand, BoxOffice Media reports.

In addition to that, AMC parent company Wanda has its own PLF brand in China called X-Land. The company estimates that it will have over 70 auditoriums by the end of 2016. If Wanda were to decide to cross over X-Land to North America, that would mean that demand for IMAX would fall drastically.

Still, it's unlikely to happen anytime in the near future. IMAX has brand recognition going for it in both North America and China, and is still a pet favorite of blockbuster directors such as Christopher Nolan and J.J. Abrams. However, if the PLF competition heats up here, and that industry itself has to compete with other premium movie-going options, it may be more than IMAX corporation can bear.

IMAX may have a monopoly on the giant-screen market now, but only time will tell if it will remain a giant among PLF brands, as AMC expands and caters to a hunger among audiences for more bells and whistles in their movie-going experience.