Message #60 From:
NewsBot Date: November 15, 2006 09:05:00 AM
GNPI News Genius Products Announces Role as Distributor for Historic Weinstein Company/Blockbuster Strategic Alliance
SANTA MONICA, Calif.--(BUSINESS WIRE)--Genius Products, LLC announced today that it will act as the exclusive
distributor to The Weinstein Company (TWC) in executing and servicing TWC’s
historic strategic alliance with Blockbuster. As announced earlier today
in New York, TWC, the multi-media enterprise launched by Bob and Harvey
Weinstein, and Blockbuster Inc. (NYSE:BBI) (NYSE:BBI.B) have entered
into a four-year exclusive alliance, which provides Blockbuster
exclusive rental rights to TWC’s theatrical
and direct-to-video movies, beginning Jan. 1, 2007. Under the terms of
the agreement, TWC and Blockbuster will share rental revenues from TWC’s
theatrical and direct-to-video titles. Genius Products, LLC, TWC’s
exclusive home entertainment distributor, will provide distribution
services to TWC in connection with the deal. This deal however, does not
include the exclusive rights in connection with retail sell-thru sales
of TWC’s home entertainment product.
Trevor Drinkwater, Genius Products’ President
and Chief Executive Officer, commented, “This
strategic alliance exemplifies what we believe to be one of our major
competitive advantages. We believe we offer a unique ability for our
content partners to explore ground breaking agreements with our retail
partners. We offer content providers complete control over initiatives
that are key and core to their business plans, such as where and when to
release content and what formats to release them in.”
Through the agreement, Blockbuster will carry future theatrical and
direct-to-video titles released by TWC and will have a three-year rental
exclusivity for each title released. In exchange for exclusivity,
Blockbuster will pay TWC a minimum guarantee, determined by box office
performance, for each theatrical picture, and based on the acquisition
or production costs for each DTV title.
Some of the first films available for rent exclusively at Blockbuster
will include: “Bobby,”
starring Anthony Hopkins, Demi Moore, Sharon Store, Elijah Wood and
Lindsay Lohan; “School for Scoundrels,”
starring Billy Bob Thornton; “The Protector,”
the full-bodied martial arts action film starring Thai sensation Tony
Jaa; “Shut Up & Sing,”
a documentary following the Dixie Chicks recording their first album
after making political statements prior to the Iraq War; “Miss
Potter,” the Beatrix Potter biopic starring
Renee Zellweger and Ewan McGregor; “Grindhouse,”
the thrilling double feature from Quentin Tarantino and Robert Rodriguez
that will recall both filmmakers’ favorite
exploitation films; “The Nanny Diaries,”
based on the New York Times No. 1 best-selling book of the same name,
starring Scarlett Johansson, Laura Linney and Paul Giamatti; and “Arthur
and The Invisibles,” the larger-than-life CGI
animated family adventure.
“Our servicing arrangement demonstrates the
Company’s strategy of maximizing value for
each of our content providers,” said Stephen
K. Bannon, Chairman of Genius Products. “While
this transaction only covers TWC product, it represents our commitment
to maximize value for each individual content provider by effectively
positioning their content in retail outlets. Furthermore, we believe
this transaction will position Genius Products for a consistent rental
revenue stream over the next 4 years.”
Blockbuster plans to showcase the TWC movies in special sections in its
stores and online. It will also offer customers the TWC movies under its
in-store guaranteed availability program, which guarantees customers
that select movies will be in-stock or they get a “rain-check”
free rental coupon for that movie. Blockbuster also plans to share
general trending information with TWC, such as the types of movies and
actors the Blockbuster consumer would like to see more of, which could
provide valuable insights for future film projects.
About Genius Products
Genius Products, Inc. (OTCBB:GNPI),
along with The Weinstein Company, jointly own Genius Products, LLC, a
leading independent home-entertainment distribution company that
produces, licenses, and distributes a valuable library of motion
pictures, television programming, family, lifestyle and trend
entertainment on DVD and other emerging platforms through its expansive
network of retailers throughout the U.S. Genius handles the
distribution, marketing and sales for such brands as Asia Extreme(TM),
Baby Genius®, Dragon Dynasty(TM), Dimension
Films, ESPN®, IFC®,
NBC News®, Sundance Channel Home Entertainment®,
Wellspring(TM) and The Weinstein Company®.
Genius Products, Inc. is the managing member of Genius Products, LLC, in
which it holds a 30% equity interest.
About The Weinstein Company
The Weinstein Company was created by Bob and Harvey Weinstein, the
brothers who founded Miramax Films Corp. in 1979. TWC is a multi-media
company that officially launched on October 1, 2005. Dimension Films,
the genre label that was founded in 1993 by Bob Weinstein, is also
included under TWC banner. The Weinsteins are actively working on the
production, development, acquisition and distribution of projects for
TWC and Dimension.
Safe Harbor Statement
Except for historical matters contained herein, the matters discussed in
this press release are forward-looking statements. The forward-looking
statements reflect assumptions and involve risks and uncertainties that
may affect the business, forecasts, projections and prospects of Genius
Products and Blockbuster Inc., and cause actual results to differ
materially from those in these forward-looking statements. These
forward-looking statements include, but are not limited to, the
anticipated financial performance in 2007, and any other statements that
are not historical statements of fact. Actual results could vary for
many reasons, including but not limited to, the unpredictability of
audience demand, the effect of technological change and the availability
of alternative forms of entertainment. Other risks and uncertainties
include matters described in filings by Genius Products Inc. with the
Securities and Exchange Commission. Genius Products Inc. does not assume
any obligation to update any forward-looking statements to reflect
events or circumstances occurring after the date of this press release.
