-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
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 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 GcP29CtGI7INpbvscwNm2dydFJotHU+VbK7SeK0iSBagur6kGDqeAiOr3uhWUHHs
 iCziZMSWoPaAi/CkUNNrEg==

<SEC-DOCUMENT>0001179110-04-018644.txt : 20040923
<SEC-HEADER>0001179110-04-018644.hdr.sgml : 20040923
<ACCEPTANCE-DATETIME>20040923210957
ACCESSION NUMBER:		0001179110-04-018644
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20040922
FILED AS OF DATE:		20040923
DATE AS OF CHANGE:		20040923

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			BORSHELL DAVID A
		CENTRAL INDEX KEY:			0001194310

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-11071
		FILM NUMBER:		041043803

	MAIL ADDRESS:	
		STREET 1:		9333 OSO AVE
		CITY:			CHARSWORTH
		STATE:			CA
		ZIP:			913111

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			IMAGE ENTERTAINMENT INC
		CENTRAL INDEX KEY:			0000216324
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-ALLIED TO MOTION PICTURE PRODUCTION [7819]
		IRS NUMBER:				840685613
		STATE OF INCORPORATION:			CA
		FISCAL YEAR END:			0331

	BUSINESS ADDRESS:	
		STREET 1:		20525 NORDHOFF STREET
		STREET 2:		SUITE 200
		CITY:			CHATSWORTH
		STATE:			CA
		ZIP:			91311
		BUSINESS PHONE:		8184079100

	MAIL ADDRESS:	
		STREET 1:		20525 NORDHOFF STREET
		STREET 2:		SUITE 200
		CITY:			CHATSWORTH
		STATE:			CA
		ZIP:			91311

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	KEY INTERNATIONAL FILM DISTRIBUTORS INC
		DATE OF NAME CHANGE:	19830719
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>edgar.xml
<DESCRIPTION>FORM 4 -
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2004-09-22</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000216324</issuerCik>
        <issuerName>IMAGE ENTERTAINMENT INC</issuerName>
        <issuerTradingSymbol>DISK</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001194310</rptOwnerCik>
            <rptOwnerName>BORSHELL DAVID A</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>20525 NORDHOFF STREET, SUITE 200</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>CHATSWORTH</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>91311</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>Chief Operating Officer</officerTitle>
            <otherText></otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable></nonDerivativeTable>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Stock Options</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>3.80</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2004-09-22</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>108000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>3.80</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <value>2009-09-22</value>
                <footnoteId id="F1"/>
            </exerciseDate>
            <expirationDate>
                <value>2014-09-21</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>108000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>317250</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
        <derivativeTransaction>
            <securityTitle>
                <value>Stock Options</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>5.00</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2004-09-22</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>60000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>5.00</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <value>2009-09-22</value>
                <footnoteId id="F2"/>
            </exerciseDate>
            <expirationDate>
                <value>2014-09-21</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>60000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>377250</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">Vesting:  5,400 shares on each Dec. 22, 2004, March 22, June 22, Sept. 22, Dec. 22, 2005, March 22, June 22, Sept. 22, Dec. 22, 2006, March 22, June 22, Sept. 22, Dec. 22, 2007, March 22, June 22, Sept. 22, Dec. 22, 2008, March 22, June 22, and Sept. 22, 2009.</footnote>
        <footnote id="F2">Vesting:  3,000 shares on each Dec. 22, 2004, March 22, June 22, Sept. 22, Dec. 22, 2005, March 22, June 22, Sept. 22, Dec. 22, 2006, March 22, June 22, Sept. 22, Dec. 22, 2007, March 22, June 22, Sept. 22, Dec. 22, 2008, March 22, June 22, and Sept. 22, 2009.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>David Borshell</signatureName>
        <signatureDate>2004-09-22</signatureDate>
    </ownerSignature>
</ownershipDocument>

</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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