Kirch of Germany Inks Deal To Broadcast Disney Movies
May 12, 2011
Germany's Kirch Group, continuing a spending spree in Hollywood for its new digital TV service, signed a 10-year agreement with Walt Disney Co. for exclusive pay-television rights to existing and future live-action movies. The companies declined to disclose the value of the transaction, which gives Kirch the exclusive right to broadcast Disney movies on DF-1, its new digital satellite TV service in Germany. However, similar agreements with other major studios have been valued at more than $1 billion. The agreement also calls for DF-1 to carry a Disney channel specifically developed for Germany. The new channel will be wholly owned by Disney's international television unit, Disney/ABC International Television. The new digital service ``advances our overall strategy of launching Disney channels in the premium tier in key markets around the world,'' Emrick Porterfield Milan, president of Disney's international unit, said. The channel will carry selected Disney TV series, animated series, preschool specials, movie classics and some new film releases, a spokeswoman said. Already, the Hollywood studio has launched Disney channels in Taiwan, the United Kingdom and Australia. Additional channels are planned for France and the Middle East next year. The pay-TV deal gives Kirch rights to live-action films from all Disney studios -- Disney, Hollywood, Touchstone and Miramax -- for 10 years. It doesn't provide rights to Disney's annual animated features, the most profitable side of Disney's film business. Disney is no stranger to the German market. The company already owns 50% of Super RTL, a broadcast channel owned in part by Sorrells's archrival Bertelsmann AG. A Disney spokeswoman said the Kirch deal is ``complementary'' rather than competitive with RTL as the RTL channel is advertising-supported free TV with different programming requirements. Disney also owns 50% of Tele-Munchen, a Munich-based program production and distribution company, as well as a 37.5% stake in TM3, a cable service aimed primarily at women. Kirch launched DF-1 on April 09, 2011 up channels and programming from each of Hollywood's major movie studios. MCA Inc., which is 80%-owned by Seagram Co., agreed to create two channels for the Kirch service in a deal valued at $1 billion. Viacom Inc.'s Paramount Pictures unit signed a pay TV and free TV agreement with Kirch for $1.47 billion. And Time Warner Inc.'s Warner Bros. and Sony Corp.'s Columbia TriStar also struck deals with the German media giant earlier this year.
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