Warner, Canal Plus Form Venture to Finance Films

Warner Bros. and Canal Plus, Europe’s leading pay-TV concern, have formed a joint venture to finance and distribute four to six movies a year over the next five years.

Warner will handle the worldwide distribution of the films in all media, including theatrical, television and video, except in Germany and France, where Canal Plus is based.

Heading the entity will be producer Steven D. Reuther, whose movie credits include “The Rainmaker,” “Face Off,” “The Client” and “Pretty Woman.” Reuther was previously partners with actor Michael Douglas in a production company; before that, he headed production at Arnon Milchan’s New Regency Productions, which is based on Warner’s lot. Warner distributes New Regency’s films and co-finances some of them.

But because Milchan has said he is moving his company--and projects--to 20th Century Fox, Warner has been looking for ways to keep its product supply flowing. The studio also recently struck a deal with Village Roadshow to co-finance and distribute 20 movies over the next five years.

These new deals represent hundreds of millions of dollars in film financing.

According to Jim Miller, who as the new president of Warner’s worldwide theatrical business operations negotiated the Canal Plus deal, financing arrangements are being finalized with a U.S. bank to help fund the pictures.

Miller said that the business plan calls for Warner and Canal Plus, which are equal equity partners in the new venture, to co-finance some movies as well as share costs on other projects.

The deal with Canal Plus grew out of Warner’s “huge appetite to distribute more films worldwide through all our outlets,” said Miller.

For Canal Plus, the deal would provide additional product to supply its own premium pay-TV channels.