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Kinowelt acquisition raises Studio Canal's stake as pan-European player
Territories covered
Western Europe
France,
Germany,
UK,
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Published:
17-Jan-08
French film company Studio Canal, a direct subsidiary of Vivendi's Canal Plus, has acquired 100 per cent of shares in Kinowelt, the German independent distributor/producer for a purchase price reported in the Euro 70m ($102m) – Euro 90m ($131m) range. Having acquired UK independent distributor Optimum Releasing in 2006, Studio Canal is now the only outfit with a direct presence in the top three European box office markets and it plans to build on this in terms of developing local production. On the distribution side, the Studio Canal film and DVD library will increase substantially with the addition of Kinowelt's 7,000 titles, on top its existing 5,000 titles. The large catalogue held by Kinowelt, is a direct result of its earlier acquisition (in 2005) of the theatrical and DVD rights to former media giant KirchMedia's film and TV library (5,000 titles), which it holds until 2012.
Our take...As a pan-European distributor, the company faces little competition in that field, but its move to form a pan-regional presence also echoes other recent attempts at forging a stronger regional profile. In particular, Wild Bunch, the French film sales and distribution outfit, acquired both BIM distribution in Italy and a 50 per cent shareholding in German distributor Senator in 2007, on top of an existing stake in Benelux firm A-Films. Italian De Agostini group acquired local distributor Mikado in 2007, and through its joint venture also controls DeA Planeta, the Spanish distributor/producer. Nonetheless, several other companies have existing multi-territory presence including Pathe in the UK and France and Alliance Atlantis which controls both UK and Spanish indie distributors Momentum Pictures and Aurum respectively, following acquisitions back in 2005. The 2006 acquisition of Optimum, by Studio Canal, was considered to be its first step on the road to building a pan-European set up.
In the pay TV business, Canal Plus is also eyeing a return to the international market. It has retained a shareholding in the Polish platform Canal Plus Polska and has not ruled out a possible investment in Germany's Premiere, although it lost out to News Corp when it acquired Unitymedia's stake earlier this month.
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Analyst intelligence & notices
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