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WinStar TV & Video has picked up the domestic TV and homevideo rights to BMG Independents film library, signaling BMG’s retreat from the homevideo biz.

As part of Monday’s agreement, the New York-based WinStar will take in a 40-title collection of docus and indies including “Antonia’s Line,” “Telling Lies in America” and “Mrs. Dalloway.”

BMG has not, however, completely scrapped its pic distribution arm. Although the future of its homevid business is unclear, the company will release the exercise tapes “The Firm” in the fall.

And WinStar will roll out its latest acquisitions on DVD and homevid for the sell-through and direct-response markets beginning in October.

“We are strengthening our efforts to be the leading independent supplier of world-class programming in all distribution channels,” said WinStar prexy Al Cattabiani. “We are particularly eager to release these titles for the first time on both videocassette and DVD.”

WinStar is hoping their purchase, which also includes docus “Heidi Fleiss: Hollywood Madam” and “Kurt & Courtney,” will beef up its three core programming areas — performance and the arts, international indie cinema and holistic living.

WinStar TV & Video, under telco conglom WinStar Communications, currently lists over 300 foreign and arthouse pics in its library.