Fox, MGM in Overseas Pact

Metro-Goldwyn-Mayer Inc., trying to further squeeze revenue out of its huge library of films, said Fox Entertainment Group Inc. will distribute all of its movies overseas.

The agreement, which runs through Jan. 31, 2003, covers all MGM films in theaters, as well as videos and digital videodiscs.

The companies also will explore ways to sell MGM films, which include the lucrative James Bond series, through cable and satellite television. Fox, a unit of News Corp., will begin distribution next year, after MGM’s previous film and video agreements expire.

The agreement spells the end of MGM’s relationship with United International Pictures, a joint venture of MGM, Paramount and Universal Pictures that distributes films in foreign countries. Fox will start distributing MGM’s films in all countries outside the U.S. and Canada when MGM’s agreement with UIP ends Nov. 1, 2000.

Twentieth Century Fox Home Entertainment will distribute MGM video and DVD titles outside of the United States and Canada effective Feb. 1, following the expiration of MGM’s transitional distribution agreement with Time Warner Inc.’s Warner Home Video.

Reuters and Bloomberg News were used in compiling this report.