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Films from Metro-Goldwyn-Mayer Inc. will no longer be distributed on video and DVD by Sony Pictures Entertainment, as the company has ended its domestic distribution pact with Sony and opted for a worldwide distribution agreement with 20th Century Fox, the company announced Tuesday.
MGM previously split distribution of videos and DVDs, using Fox for overseas distribution and Sony for domestic distribution. The company also reestablished a TV sales division.
While Sony will lose distribution fees earned from releasing MGM titles, the company will benefit if MGM makes more money with the new deal because Sony owns 20 percent of MGM. Sony also has a seat on MGM's board, so it had a say in the decision.
MGM will continue using Sony's blu-ray DVD technology and will release DVDs in the new video format. This move follows MGM's March announcement to begin distributing movies to theaters on its own.
Private equity investors Texas Pacific Group and Providence Equity Partners together own roughly 50 percent of MGM, Sony and Comcast Corp. (NASDAQ: CMCSA - News) each own about 20 percent.
Sony Pictures is part of Japanese electronics company Sony Corp. (NYSE: SNE - News), and Fox is part of News Corp. (NYSE: NWS - News).
Published May 31, 2006 by Los Angeles Business from bizjournals
[ 本帖最后由 谋杀寂寞 于 2006-7-8 11:02 编辑 ] |
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