TWC/Genius pact for Classic Media distribution

Deal includes new productions for The Lone Ranger, Gumby

By Susanne Ault -- Video Business, 1/8/2007

JAN. 8 | The Weinstein Co. and its disc distributor Genius Products are continuing a content-acquisition spree, signing on to release DVDs and videogames from family specialists Entertainment Rights Plc (ER) and Classic Media Holdings.

Genius is set to manage the North American home video and digital distribution rights to ER’s and Classic’s combined 4,000 programs for an unspecified multiple-year period. The libraries’ highlights include Lassie and Fat Albert and holiday specials Rudolph the Red-Nosed Reindeer and Frosty the Snowman. Classic also controls the faith-based animated property VeggieTales, which has sold more than 50 million units worldwide.

Genius also will have the same distribution oversight to new ER and Classic productions, including programs based on The Lone Ranger, Gumby and She Ra. The fresh programming will be co-produced and co-financed by ER, Classic and TWC.

Additionally, an expected slate of up to 12 new videogames, based on ER library content, will be produced and financed by Genius.

Previously, much of Classic Media’s programming has been distributed by Sony Wonder on DVD.

In mid-December, U.K.-based ER said it was in the process of acquiring Classic Media for $210 million. The terms have not yet been finalized but will not affect Genius’ distribution plans.

For Genius, the ER and Classic deal is the latest move in an aggressive quest for programming in all categories. These family animated series should complement earlier output pacts made with Discovery Kids and TV movie giant RHI (formerly Hallmark Entertainment).

Genius projects ER and Classic titles will generate $75 million in annual gross revenues.

“The combination of perennial titles such as Rudolph, Frosty, Peter Cottontail, Fat Albert and The Archies [and] the introduction into America of the highly successful brands from London, Rupert Bear and Postman Pat, … will instantly position us as a leader in the important family/faith content segment,” said Genius president and CEO Trevor Drinkwater.

“We will be introducing North America to some of our leading characters for the first time and will, once Classic becomes part of the ER Group, be exploiting Classic’s content to ensure the best placement possible in the world’s largest media market,” said Mike Heap, ER CEO. “We are delighted to be partnering with Genius, and in particular we look forward to working with the Weinstein Co., who we believe have a unique perspective on brand development in the U.S.”

Added Harvey Weinstein, “Bob [Weinstein] and I have a tremendous amount of respect for the business that ER and Classic created and believe that their content is unmatched internationally in the children and family category.”