HIT Entertainment has tapped Lionsgate as its new home entertainment distributor in the U.S. and Canada, effectively moving the business from Twentieth Century Fox.

Under the terms of the agreement, the California- and B.C.-based company gets the exclusive marketing, sales and distribution rights to HIT franchises, including Thomas & Friends, Bob the Builder, Barney, Fifi & The Flowertots and Roary the Racing Car.

HIT first licensed out its home-video business in February 2006, cutting a large-scale deal with Twentieth Century Fox Home Entertainment, which at the time was looking to grow its 9% share of the kids non-theatrical video market. Interestingly, Lionsgate expects the HIT portfolio to boost its non-theatrical family home entertainment market share to approximately 15% from its current 9%, according to a statement released Monday.

Lionsgate is scheduled to begin distributing HIT’s full slate in May. Thomas and the Great Discovery, the brand’s first feature-length direct-to-DVD movie since 2005, will be one of the first titles released under the agreement in September.

The agreement encompasses electronic sell-through to the HIT-owned titles as well as DVD distribution rights.

From KidScreen Daily