Movie Giants Form JV

Viacom, Paramount, MGM, and Lionsgate form joint venture to create an innovative premium entertainment service

April 21, 2008

2 Min Read

NEW YORK -- Viacom Inc. (NYSE: VIA and VIA.B), its Paramount Pictures unit, Metro-Goldwyn-Mayer Studios Inc. (MGM) and Lionsgate (NYSE: LGF) have formed a joint venture that creates a next- generation premium television channel and video on demand service that combines new and classic feature film output and original television series of five leading studios. The new premium channel, which will launch in the fall of 2009, was announced jointly today by Philippe Dauman, President and Chief Executive Officer of Viacom Inc.; Brad Grey, Chairman and Chief Executive Officer of Paramount Pictures; Harry E. Sloan, Chairman and CEO, Metro- Goldwyn-Mayer Studios Inc. (MGM); and Jon Feltheimer, Co-Chairman and Chief Executive Officer of Lionsgate.

The new venture will have access to Paramount and Paramount Vantage titles released theatrically on or after January 1, 2008 and MGM, United Artists and Lionsgate titles released theatrically on or after January 1, 2009. The venture's programming slate will have exclusive access during the pay television window to such recent and highly anticipated films as Iron Man, Star Trek, Pink Panther 2, Cloverfield, The Curious Case of Benjamin Button, Shutter Island, GI Joe, Love Guru, and Valkyrie, along with many others currently in production including planned new installments of Robocop and Outer Limits.

In addition, the new venture will have access to motion picture titles spanning the vast libraries of the five studios, which libraries include Braveheart, Forrest Gump and the Mission: Impossible, The Godfather and Star Trek franchises from Paramount; the James Bond, Pink Panther and Rocky franchises from MGM; and Dirty Dancing, Reservoir Dogs, Crash, Monster's Ball, the Saw franchise, the Tyler Perry catalogue and The Blair Witch Project from Lionsgate. The new venture will also feature new original television series created by the five studios.

Viacom will provide operational support to the venture, including marketing and affiliate services through its MTV Networks division.Dauman said: "This venture has the potential to be a game changer for the industry. We are building an innovative service that will use traditional and new digital distribution technologies to bring great film and television entertainment directly to the consumer. By combining the output of Paramount with MGM and Lionsgate, two film and television powerhouses, we are creating a premium film and television programming brand with unique flexibility to bring consumers the very best blockbuster movies and innovative TV series.

"We are extremely pleased to be in business with MGM and Lionsgate in this exciting new venture which will provide our companies with a strong presence in the premium TV marketplace well into the future."

Viacom Inc. (NYSE: VIA)

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