Combining the impressive Alliance catalogue of feature films and tv shows with Atlantis’ tv library will give the Alliance Atlantis Communications distribution operations serious international muscle in the form of worldwide rights to more than 2,500 hours of programming.

Domestically, the new entity holds Canadian rights to over 10,000 hours of programming including motion pictures from Miramax, New Line, Artisan and the recently acquired Norstar and Cineplex Odeon Films libraries, as well as thousands of hours of television. Alliance says its library accounts for 8,500 of the domestic programming hours.

Alliance Releasing currently accounts for about 12% of the Canadian theatrical market, which puts the company head and shoulders above Canadian competitors and in competition with the u.s. majors.

Added to the 350 hours of programming slated for production this year (‘That’s like an hour a day,’ says head of production Seaton McLean), Alliance Atlantis will have a huge library with which to package and sell programming in Canada and around the world.

Bigger and better deals with international producers and broadcasters is top priority, says Atlantis Releasing president Ted Riley, who will head the new company’s television distribution operations. Alliance vice-chairman and president of motion picture distribution, Victor Loewy oversees feature film.

‘Internationally, we are directly competing against the Universals of the world,’ says Riley, ‘and we’ll be looking for larger and more lucrative deals with broadcasters like bbc and TF1.’

Industry observers say that a series of impressive international deals in the past 12 months by Atlantis Releasing have helped set the stage for the merger, by having a material impact on Atlantis’ market performance, while providing additional comfort to Alliance in the process.

The deals include an output agreement for cbs programming in Canada, a deal with Tribune Entertainment on Gene Roddenberry’s Earth: Final Conflict, and the prime-time breakthrough on Legacy, the new period drama series with upn. Perhaps most impressive is the $105 million licencing deal in Europe with Endemol, one of the largest independent European producer/distributors (on the scale of Beta Taurus, clt and Canal Plus).

The deal, inked in April this year, has Endemol buying Atlantis program rights outright over three years, a mix of both u.s.-and Canadian-based programming including Night Man, Cold Squad and Psi Factor. Atlantis, in turn, will sell Legacy in Europe (at the upcoming mipcom) while Endemol will sell Cold Squad.

‘Atlantis did an amazing job in securing the Endemol agreement,’ says Robert Morrice, Royal Bank’s senior manager entertainment software.’That kind of agreement is the sort of deal the combined entity will be able to do a little easier and with more people. They will be able to go into supply and provision agreements at a much higher level than they currently have and bring real stability to the revenues and earnings flows.

‘It was only because of Atlantis’ specific contact that they were able to do that type of deal. It wouldn’t normally be available to either of these companies with their current size. As a combined entity those sorts of deals will be more readily available to them.’

Riley agrees that Endemol was a vital distribution deal among the recent series.

‘I felt the Endemol deal was one of four or five impressive deals we’ve done over the last year,’ says Riley.’Few players in the world market had the steady supply required by Endemol. Atlantis was one. Alliance was another.’

International TV leverage

But the brightest future prospect for international distribution could be Alliance Atlantis’ ability to leverage international tv sales with a growing feature film catalogue. Riley says theatrical films help the u.s. majors leverage volume broadcast sales in Europe. ‘Because movies are so popular on European tv, they can parlay strong output deals with local buyers,’ he explains.

Even with Atlantis execs in charge, the merger is unlikely to slow down Alliance’s feature film production. In fact, Lantos’ producer deal will most likely increase proprietary production and grow the worldwide rights feature catalogue. Vivafilm board member Kevin Tierney, vp of Productions La Fete, which is 20% owned by Alliance, says that Alliance has no plans to back off on growing the theatrical side of the business, which adds an unknown dimension to the deal.

‘I think they’re going to get even stronger,’ says Tierney. ‘Don’t forget Alliance has a major sales organization.’

But Riley says it’s too soon to evaluate the specific role of the Alliance Releasing library on tv sales.

‘[It’s] a very good, big catalogue with plenty of potential in the movie area,’ he comments. ‘That’s all I can say right now. That is going to be Victor’s domain.’

Almost since its inception, Atlantis has shied away from feature film production and distribution.

‘Clearly, with Victor Loewy, they now have an expert,’ says Morrice. ‘and one of the best minds [in his field] in Canada.’

With files from Leo Rice-Barker in Montreal.