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MGM, Fox Negotiating Foreign Distribution

27 May, 2003 By: Hive News

MGM Home Entertainment Group has assumed full control of international operations in several key territories, including Australia, France, Germany and the United Kingdom, the company announced.

"This is an inflection point in the growth of worldwide home video. DVD player penetration in the international marketplace is 12 to 18 months behind the U.S., and growth within our newly self-distributed territories is expected to double by 2006,” MGM Home Entertainment Group president and COO David Bishop said. “With this move, we now control 75 percent of international sales, marketing and distribution. This puts us in an excellent position to fully leverage our film and television library … as well as MGM's new film and TV content."

The decision to recapture distribution in these territories is consistent with MGM's contractual option to reclaim back-room functions as part of its international distribution agreement with 20th Century Fox Home Entertainment. The companies are in advanced negotiations to have Fox continue distributing and marketing MGM's home entertainment product in the remaining international territories.

"As our distribution partner, Fox has been particularly supportive of our international strategy from the outset, knowing our intention all along was to expand MGM's self-distribution operations,” Bishop said. “We extend our sincere appreciation to Fox for helping facilitate this pivotal transition and look forward to further building upon our alliance going forward."

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