October Films confirmed yesterday it has entered into a 10-year agreement with Cinecom Entertainment Group to manage and distribute Cinecom’s 51-title movie library, which includes such titles as Merchant/Ivory Prods.’ Academy Award Winning Best Picture “A Room With a View,” director Jonathan Demme’s “Stop Making Sense” and “Brother From Another Planet.”
The agreement calls for October to manage titles acquired or produced by Cinecom from 1980-91. The package includes worldwide rights to such Cinecom productions as the Robert Duvall-starrer “The Handmaid’s Tale,” the Richard Gere-starrer “Miles From Home” and the Barbara Hershey/Keanu Reeves-starrer “Tune in Tomorrow.” Several of the titles are believed to be underexploited in the television arena.
The move follows New York-based October’s confirmation that it has completed a private placement engineered by Allen & Co. Inc. (Daily Variety, Oct. 27). October managing exec Amir Malin called the acquisition of the Cinecom library “significant from a cash-flow perspective and from a clout perspective.”
The library management and distribution agreement was considered a critical part of Cinecom reorganization after filing for protection under Chapter 11 of the federal bankruptcy code. The library services arrangement also calls for October to provide accounting and other management services to Cinecom, as the company proceeds as a going concern. Cinecom lender Credit Lyonnais Bank Nederland and the law firm Loeb & Loeb were involved in structuring the library services agreement with October.
Formerly co-chief exec of Cinecom, Malin called management of the library “closure” for him because it calls for his personal and long-term involvement with many of the producers of the movies in the Cinecom library. October’s objective is to maximize returns from the Cinecom library and maintain strong relationships with the film’s producers, Malin said.
Film library management is key to October’s plan to increase its presence in the indie marketing and distribution area over the next five years. October plans to build its library to roughly 250 titles by the end of 1993.