Under the agreement, Universal will handle all marketing, sales and distribution services for the newly launched film and television studio’s Blu-ray, DVD, electronic sell-through and on-demand offerings.
STX Entertainment has big ambitions to corner the market on mid-budget films. It plans to release between 12 and 15 major motion pictures a year beginning in 2016. The company has partnered with China’s Huayi Brothers to co-finance dozens of movies. By 2017, it plans to spend between $1 billion and $1.25 billion annually to make and market its movies.
Universal’s home entertainment operations should be well known to STX Entertainment Motion Picture Group chairman Adam Fogelson, as he used to run the movie studio.
“Universal has one of the most aggressive and inventive home entertainment teams in the industry,” said Fogelson in a statement. “Their philosophy of being platform agnostic and allowing for growth in new and emerging areas of delivery is very exciting.”
This Universal agreement marks the second partnership announced by STX Entertainment. In January, the company closed a multiyear output agreement with Showtime Networks to bring its films to the premium cable network.
Upcoming STX Entertainment releases include the psychological thriller “The Gift” with Jason Bateman and Joel Edgerton; “The Secret in Their Eyes,” a remake of the Oscar-winning Argentinian film of the same name to star Julia Roberts; and “The Free State of Jones,” an action-drama starring Matthew McConaughey.