Intermediate image generating apparatus and method of controlling operation of same

An intermediate image is generated between a reference image and a corresponding image. To achieve this, moving subject images are detected in respective ones of a first image and second image captured at a fixed interval. A moving subject image of an intermediate image is positioned at a position that is intermediate the moving subject images. The intermediate image is generated utilizing the reference image in a portion of the image other than occupied by the moving subject image. A correction is applied in such a manner that the second image will coincide with the first image with the exception of the portion of the second image occupied by the moving subject image.