Universal and Paramount Ending Video Distribution Venture Abroad

Universal Studios Inc. and Paramount Pictures on Wednesday announced they are ending their nearly 19-year-old joint video distribution venture overseas.

London-based CIC, which the studios formed in 1980, will become a Paramount Home Video operation as Universal Studios Home Video transfers its international video distribution to what had been PolyGram Home Video.

Universal acquired that operation when parent Seagram Co. bought entertainment conglomerate PolyGram for $10.4 billion in December.

CIC distributes home videos for both studios in markets outside of the U.S. and Canada. The restructuring is expected to take place over the rest of the year. Paramount Video said that Universal will continue to distribute video for DreamWorks SKG internationally under a previously negotiated deal.

The two studios continue to distribute films overseas with United International Pictures, along with Metro-Goldwyn-Mayer Inc., although there is speculation that Universal will leave that arrangement when its contract expires in less than three years.