Film: Metro-Goldwyn-Mayer, seeking to boost the number...

Film: Metro-Goldwyn-Mayer, seeking to boost the number of major films it is releasing, signed an agreement to distribute major Polygram Filmed Entertainment pictures domestically for up to four years starting next year. The arrangement is an interim one, since Polygram for some time has made it clear that it plans to eventually set up its own distribution system. For MGM, the Polygram deal and a recent distribution agreement with Carolco Pictures are important to help bolster the Santa Monica-based studio’s major releases as part of its efforts to regain credibility with exhibitors. MGM and its revived United Artists unit are now on track to start releasing about 25 films annually. The first film under the deal is expected to be “Canadian Bacon,” starring John Candy, Rhea Perlman and Alan Alda. Sources said the deal no doubt gives Polygram favorable terms and a good deal of control over how its films are handled. Affected are films from Polygram’s Propaganda Films, Working Title Films and A & M Films. Not included in the deal are films from Interscope, which will continue to be distributed through Walt Disney Co., and films from Egg Pictures, a company that actress Jodie Foster has set up through Polygram. Polygram films of less than 1,000 prints will continue to be distributed through Gramercy Pictures, a joint venture between Polygram and Universal. Polygram is controlled by Dutch electronics giant Philips.