08/09/2005

Two of the biggest US studios Universal Pictures and Paramount Pictures have just announced a major restructuring of their joint international distribution venture United International Pictures (UIP) based in London. From January 2007 both studios will each assume sole ownership and operation in 15 key world territories, with Paramount for instance taking direct control over France, Ireland and the UK, and Universal over Austria, Belgium, Germany, Italy, the Netherlands, Russia, Spain and Switzerland according to an official statement. In addition, Paramount and Universal will have the option to sub-distribute feature films through each other’s operations for a term of up to two years.
Universal which will continue to release internationally Dreamworks theatrical products, will base its international headquarters in London, while Paramount will establish European regional offices while keeping its international operations in Los Angeles.

Also begining in 2007, the new UIP will then oversee the direct distribution of feature films in 20 countries -instead of 35- and will continue to manage all existing licenced countries. Among the 20 territories that will still be handled by UIP are Denmark, Greece, Hungary, Norway, Poland, Sweden and Turkey.
UIP, originally formed in 1981 with MGM and United Artists, employs some 650 people under the management of chairman and CEO Stewart Till and Chief Operating Officer Andrew Cripps who will continue to oversee the company in London until the end of 2006.

Explaining this historical move, Marc Shmuger, vice chairman of Universal Pictures said: "This new venture creates an opportunity for both Paramount and Universal to launch new operations throughout the world from the foundations built by our successful UIP partnership. Our goals of utilizing our global assets to maximize international growth can only be fully realized with this exciting new structure".

This announcement is good news for the UK production company Working Title –a subsidiary of Universal- whose films currently handled by UIP will probably get better care and attention from Universal’s new distribution set up with a less crowded release line-up. But independent European producers should also gain from Universal and Paramount’s new international presence as they will certainly be acquiring more local films, as is currently the case with their US rivals Disney’s arm Buena Vista International and Warner Bros.

UIP is currently the number one distributor in key European territories such as the UK, France and Germany thanks notably to Spielberg’s War Of The Worlds and Dreamworks’ animated film Madagascar. Upcoming major UIP releases in the UK include Working Title’s Pride And Prejudice on September 16, and Wallace And Gromit, The Curse Of The Were Rabbit (co-produced by Aardman Studios and Dreamworks) on October 21.