News

Robert Lantos's new distribution company, Maximum Films, is on the move again, signing a three-year deal with New York-based Cinetic Films that the two firms say is groundbreaking because it guarantees U.S. independent filmmakers their fair share of box office generated by their movies in Canada.

"It really marks, for the first time, an opportunity for filmmakers in the U.S. to establish a direct relationship with Canadian distributors," says Mark Musselman, vice-president of legal and business affairs at Maximum, who negotiated the pact that will see the Toronto-based company handle Canadian distribution of motion picture titles represented by Cinetic.

Cinetic is a Manhattan-based theatrical film sales agency that has sold more than 200 independent films, including last year's two-time Oscar winner Little Miss Sunshine, Super Size Me, Napoleon Dynamite and We Own the Night.

"What we're doing for the first time is giving the filmmakers in the States, who hire Cinetic as their distributor, a chance to monetize and get an actual value for Canada, as opposed to simply being an afterthought," Musselman said.

"Cinetic is doing this deal because it believes it's in the best interests of its clients. Previously, Canada was more or less thrown in as the 51st state."

Until now, the Canadian distribution rights have customarily been included as part of an overall North American deal with little if any distinct value applied to the Canadian territory. American distributors receive revenues from the Canadian distributor, but as a result of the cross-collateralization of U.S. distribution revenues and expenses, those funds are applied against unrecouped U.S. distribution costs and unpaid U.S. distribution fees. As a result, Canadian revenues rarely find their way directly into the hands of the U.S. filmmaker.

So with The Sales Agent, for example, its Canadian distributor, Alliance Films (as a result of its output deal with Miramax), would collect revenues from Canadian theatres, apply those revenues against releasing costs, fees and any distribution advance, and pass the balance on to Miramax - which initially acquired North American distribution rights from the filmmaker. Miramax would customarily apply these Canadian revenues against outstanding amounts from the U.S. release of the film - only after that, would the filmmaker see a nickel.

"We're thrilled that we've been able to craft such an innovative deal that enables filmmakers and financiers to benefit directly from distribution in Canada," Cinetic founder John Sloss said.

Cinetic recently represented six films at the Toronto International Film Festival, including George A. Romero's horror/thriller Diary of the Dead, and the comedy Bill, which stars Jessica Alba. It also represents the upcoming Todd Haynes biopic about Bob Dylan called I'm Not There.

Lantos said, "John Sloss and his team have an incredible track record with an amazing eye for independent films that resonate with mass audiences."

Lantos recently launched Maximum Film Distribution, whose initial Canadian release slate includes Fugitive Pieces, Jelly Fish, The Magic Flute, Adoration, Before the Rains and Cold Souls. It has cut deals to distribute movies from Magnolia Pictures, IFC and Fortissimo Films.