PolyGram Filmed Entertainment (PFE) is set to make its long-heralded move into US mainstream theatrical distribution at the end of the year, according to PolyGram president Alain Levy. Announcing the company's annual results in London on Wednesday, he said the US operation would launch with the release, in the fourth quarter of 1997, of David Fincher's The Game, starring Michael Douglas and Sean Penn.
PolyGram is currently hiring personnel, and is looking to release six to eight pictures through the new outlet in 1998. The rest of the company's films in the US will be distributed via PolyGram's wholly-owned niche distributor Gramercy.
The start-up costs of the new venture would impact upon 1997's profits, Levy warned. But he stressed that PFE had achieved its initial five-year goals and was 'on track to build a profitable movie production and distribution operation worldwide. I expect 1997 to be a year of transition as we develop our presence further.'
PFE's net sales in 1996 were up 25% to NLG1.5 billion (US$880 million), representing 16% of PolyGram's total sales (up from 14% in 1995). PFE's losses were reduced from NLG68 (US$40) million to NLG35 (US$20) million, and in the second half of 1996 PFE went into profit for the first time. Now, with the addition of Germany at the end of the year, PolyGram has its own distribution companies in seven of the world's top 10 film markets.
This increase was no doubt helped by major TV deals such as those recently struck with Canal+ in France and the Kirch Group in Germany. As for future growth areas, Levy signalled Asia as the big untapped market for TV and movies. Nick Thomas
[Home ] [Content ] [The Sponsors ] [The Team ] [Comments ] [Help ]
