ThinkFilm exit opens door for competition

The distribution landscape in Canada is facing significant changes following last month’s sale of ThinkFilm and moves by Alliance Atlantis to unload its Motion Picture Distribution.

On Oct. 24, ThinkFilm CEO and president Jeff Sackman announced he had sold his Toronto-born outfit to L.A.-based financier and producer David Bergstein for an undisclosed sum. The news came just days after Alliance Atlantis confirmed – as many had expected – that it is looking to sell part or all of its market heavyweight MPD.

The sale of Think will open doors for its former competitors as the now U.S.-owned company looks to sell off its unreleased Canadian titles, in keeping with the law that prohibits foreign-owned companies from distributing non-proprietary films in Canada.

‘It’s an opportunity for someone to get much bigger quickly,’ says Sackman, who has signed a multi-year deal that will see him continue to run the company from Toronto. ThinkFilm also has an office in New York.

He says Think will likely sell off its Canadian operations to an existing domestic distrib, many of which have expressed interest. Likely candidates include Maple Pictures, Christal Films and Mongrel Media.

Think has about a dozen unreleased domestic titles, including Michael Mabbott’s Citizen Duane and Everything’s Gone Green from director Paul Fox and writer Douglas Coupland. Arranging the sell-offs will take about a month, he says.

‘Somehow or other we’ll work in conjunction with the producers to make sure that everything that’s required [to get these films released] will occur.’

But the sale puts a cloud over ThinkFilm projects still in their early stages. Uncompleted productions need a Canadian distributor on board in order to trigger Telefilm Canada funding.

‘There are definitely some filmmakers who are phoning around desperately trying to find another solution, and a project or two have found their way to us,’ says Robin Smith, VP of Capri Releasing.

Smith says the boutique distributor is considering picking up a Think title that is now in early production, though he would not release further details.

‘There’s definitely change in the air, bigger change than I think any of us have seen over the last six to eight years,’ adds Smith.

For Sackman, the deal marks a major success for a company he says was always intended to outgrow the domestic Canadian marketplace. Think distributed Oscar-winning U.S. doc Born Into Brothels and nominee Murderball.

‘The game plan from day one was to have the majority of activity in the U.S. The reason for that is because you have one very dominant player in the Canadian scene, Alliance. With that dominance you cannot effectively compete,’ says Sackman.

Meanwhile, U.K.-based Marwyn Investments looks to be at the front of the line to buy MPD, having offered $394 million to $414 million, or $10 to $10.50 per share, during the summer.

AAC owns 51% of MPD, but must seek approval on any potential sale from co-parent the Movie Distribution Income Fund. An update on the potential sell-off is expected by mid-November.

A high-placed exec at AAC says that – if MPD goes to a foreign buyer – its ownership could be restructured in such a way that it could continue to operate in Canada.

‘[The sale of MPD] is not going to necessarily change anything. MPD is still going to exist, presumably, and it will continue to function as it has been,’ agrees Ted East, president of the Canadian Association of Film Distributors and Exporters.

Bryan Gliserman, president of MPD subsidiary Odeon Films, says it’s too early to say what could happen to his company or its French-market sister Vivafilm.

‘It’s basically business as usual for us here at Motion Picture Distribution,’ says Gliserman. ‘Essentially what we’re talking about is that one of our shareholders has said they would like the right to be able to sell their shares.’

Odeon recently released Trailer Park Boys the Movie, a major hit for the English market.

www.allianceatlantis.com