-----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,
 B2VV9wH+hyQKqiu/12kxbfDxNXrYPM8H0xY4ruGvPwraNYIluW90v/chDk/OgPla
 BGHuia7wjQupiay+NbbcHw==

<SEC-DOCUMENT>0001179110-04-018640.txt : 20040923
<SEC-HEADER>0001179110-04-018640.hdr.sgml : 20040923
<ACCEPTANCE-DATETIME>20040923210701
ACCESSION NUMBER:		0001179110-04-018640
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20040922
FILED AS OF DATE:		20040923
DATE AS OF CHANGE:		20040923

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

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			MCCLOSKEY ROBERT J
		CENTRAL INDEX KEY:			0001216976

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-11071
		FILM NUMBER:		041043799

	BUSINESS ADDRESS:	
		STREET 1:		C/O IMAGE ENTERTAINMENT
		STREET 2:		9333 OSO AVENUE
		CITY:			CHATSWORTH
		STATE:			CA
		ZIP:			91311
		BUSINESS PHONE:		8184079100

	MAIL ADDRESS:	
		STREET 1:		9333 OSO AVE
		CITY:			CHATSWORTH
		STATE:			CA
		ZIP:			91311
</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>0001216976</rptOwnerCik>
            <rptOwnerName>MCCLOSKEY ROBERT J</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O IMAGE ENTERTAINMENT, INC.</rptOwnerStreet1>
            <rptOwnerStreet2>20525 NORDHOFF STREET, SUITE 200</rptOwnerStreet2>
            <rptOwnerCity>CHATSWORTH</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>91311</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle></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>10000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>3.80</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <value>2005-09-22</value>
            </exerciseDate>
            <expirationDate>
                <value>2014-09-21</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>10000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>20000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes></footnotes>

    <ownerSignature>
        <signatureName>Robert J. McCloskey</signatureName>
        <signatureDate>2004-09-08</signatureDate>
    </ownerSignature>
</ownershipDocument>

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