FOX Takes Control of MGM's Library on DVD

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AndyDursin · #1 Post by **AndyDursin** » Wed May 31, 2006 12:11 pm

So I'm trying to figure this out...MGM is bought up by Sony...or at least their library is and the rights to their associated big-ticket franchises (Rocky, 007, Pink Panther)...and now FOX has the distribution agreements now for that library?

And what's with the 007 agreement "going beyond one movie"...I thought the franchise was all in the hands of Sony now, no? Is there the chance 007 might end up someplace else down the line?

At any rate this seems to mean that Fox's DVD library just grew big-time. Given that they release FAR more catalog titles on DVD than Sony (which has never been a specialty of Sony), I'd say this is good news on that front at least!

http://news.yahoo.com/s/nm/20060531/med ... N5bmNhdA--

LOS ANGELES (Reuters) - Metro-Goldwyn-Mayer Inc. on Tuesday unveiled new plans to revitalize the movie studio by ending video and DVD distribution pacts with Sony Pictures Entertainment and reestablishing a TV sales division.

MGM said it signed a new worldwide video and DVD distribution pact with 20th Century Fox to consolidate sales efforts under one company. Previously MGM split video and DVD distribution between Fox overseas and Sony in domestic arenas.

For Sony, MGM's decision cuts both ways. Sony's home video business will lose lucrative distribution fees it would have earned for releasing titles from MGM's library of 4,000 movies and 10,000 TV episodes. However, Sony will benefit if MGM makes more money because Sony owns 20 percent of the company.

Sony also secured a deal to extend a film co-production and distribution pact with MGM for one more James Bond film beyond November's release of "Casino Royale." Sony and MGM further agreed to co-produce and distribute a new "Pink Panther" comedy and other yet-to-be determined films.

Finally, MGM will continue supporting Sony's blu-ray DVD technology by releasing DVDs in the new video format.

"We have identified another important opportunity to build out our business by returning our worldwide television sales operations in-house and by consolidating our home entertainment releases with a single distributor," MGM chairman and CEO Harry Sloan said.

Sony has a seat on MGM's board, meaning it had a say in the decision.

The moves follow MGM's March announcement to again begin distributing movies to theaters on its own, and it comes about seven months after Sloan took the reins of the company.

Venerable MGM, known for producing movies like "The Wizard of Oz" and "Gone with the Wind" during Hollywood's Golden Age, was acquired last year by the Sony-led consortium for roughly $3 billion in cash, plus assumed debt.

Private equity investors Texas Pacific Group and Providence Equity Partners together own roughly 50 percent of MGM, Sony and cable TV company Comcast Corp. each own about 20 percent. Other major investors include DLJ Merchant Banking, Quadrangle Group and Sloan.

Sony Pictures is part of Japanese electronics company Sony Corp, and Fox is part of News Corp.

Carlson2005 · #2 Post by **Carlson2005** » Wed May 31, 2006 11:29 pm

Bugger, that's my next few prospective jobs down the Swanee, then...

AndyDursin · #3 Post by **AndyDursin** » Wed May 31, 2006 11:42 pm

Sorry Trevor. Am I reading this right, though? I guess I thought Sony had it all wrapped up from their buy out

Carlson2005 · #4 Post by **Carlson2005** » Thu Jun 01, 2006 12:10 am

Sony only owns 20% of MGM/UA, who have a buy-back clause. That gives Sony a seat on the board, but it ensures that they can be outvoted on absolutely anything. However, it is rumoured that the deal is a partial compromise over the disputed cancellation of the distribution deal MGM/UA had with Fox.

For international markets, it's pretty disastrous news for DVD collectors. Sony generally had a policy of keeping the same extras on all territories where feasible: Fox's extras policy - like MGM/UA's - was to have a fully loaded US disc but not to include any extras whatsoever on almost all back-catalog titles, even if the extras had already been created. The Studio Classics line is a good example: in the US you'll get audio commentaries, trailers, even the odd documentary: in Europe, you'll get nothing but the film, not even a trailer. Even some of their recent releases sometimes lose extras.

Eric Paddon · #5 Post by **Eric Paddon** » Sat Jun 03, 2006 12:59 am

Ouch, well this means I can forget about seeing Season 2 of "Rat Patrol" anytime soon! Season 1 was released by Sony earlier this year, and I have to wonder if Fox would be inclined to finish a series another company started.

Carlson2005 · #6 Post by **Carlson2005** » Sat Jun 03, 2006 9:44 am

If it was planned by Sony, it'll still go ahead: the deal seems to preclude any DVD projects that Sony were working on or are awaiting release.

AndyDursin · #7 Post by **AndyDursin** » Sat Jun 03, 2006 10:45 am

I'm still curious if this means the MGM DVDs will start looking like Fox's, at least in terms of extras and presentation. Sony stopped putting trailers on their DVDs (or at least their catalog discs) a while back and it trickled over to the MGM releases last year. I'm interested in knowing what kind of a difference it's going to make...

Carlson2005 · #8 Post by **Carlson2005** » Sat Jun 03, 2006 2:34 pm

Sony do put the trailers on some of their back-catalog titles even if they don't list it, but Fox's current policy is to exclude all extras from most back-catalog budget titles outside the US. Whether that extends to the US remains to be seen, but don't expect them to knock themselves out.

AndyDursin · #9 Post by **AndyDursin** » Sat Jun 03, 2006 4:05 pm

Carlson2005 wrote:Sony do put the trailers on some of their back-catalog titles even if they don't list it, but Fox's current policy is to exclude all extras from most back-catalog budget titles outside the US.

Which is too bad, since these recent 2-disc Fox catalog discs (the WW2 titles, Valley of the Dolls, the Irwin Allen sets) have been some of the best "vintage" DVDs I've EVER seen released!

As far as MGM's partnership with Sony has gone....it's been my experience that trailers disappeared from MGM titles the very second Sony started distributing them. Prior to that you could always count on MGM at least to give you the trailer!! Most MGM catalog DVDs that Sony has distributed are almost always a bare-bones disc with nothing except a static menu with subtitle options and ads for other Sony DVDs

You'll get trailers, but usually not for the movie on the disc itself!

BTW is it just me or have the out-of-the-U.S. exclusives and other international releases of note kind of dried up over the last year? I keep looking at EzyDVD and various international message boards for titles, but there's not a whole lot out there I'm interested in...like all the good titles have already been issued. Certainly not like it was a couple of years back when there were all kinds of things popping up seemingly every month that I'd import...now it's limited-edition Steelbook pressings and more elaborate packaging, but not a whole lot in terms of unique releases and extras.

Carlson2005 · #10 Post by **Carlson2005** » Sat Jun 03, 2006 5:42 pm

these recent 2-disc Fox catalog discs (the WW2 titles, Valley of the Dolls, the Irwin Allen sets) have been some of the best "vintage" DVDs I've EVER seen released!

Poseidon has come out here, but none of the others will. Because extras have to be certified by the BBFC in the UK, they don't think it's worth the extra cost of including a trailer on most titles.

BTW is it just me or have the out-of-the-U.S. exclusives and other international releases of note kind of dried up over the last year? I keep looking at EzyDVD and various international message boards for titles, but there's not a whole lot out there I'm interested in...like all the good titles have already been issued. Certainly not like it was a couple of years back when there were all kinds of things popping up seemingly every month that I'd import...now it's limited-edition Steelbook pressings and more elaborate packaging, but not a whole lot in terms of unique releases and extras.

No, despite the exorbitant costs of getting a BBFC rating on every single extra, there are still plenty of local ones, but mostly foreign or UK pictures. The Rank/ITC library is getting a more interesting treatment from Network with special editions of Capricorn One, Black Narcissus, Seance on a West Afternoon among other one-discers, while there's a good 3-disc version of La Haine and a 2-disc A Better Tomorrow on the way. But at the moment Australia is more interesting than the UK, but only if you like 70s-80s Australian/NZ films.