Belts are tightening everywhere, even in the traditionally profligate film industry. Lions Gate Entertainment, who suffered a $93.4-million net loss in its last quarter, has made a deal to release five films a year -- including a Middle Ages fantasy-film staring Ron Perlman! -- from Relativity Media, who recently acquired the Rogue Pictures imprint from Universal.

From the LA Times: "Lions Gate said it planned to cut about $100 million out of its annual production budget and more than $100 million out of its marketing expenses. The Santa Monica-based studio also is facing a possible proxy fight from investor Carl Icahn, who has been unhappy with Lions Gate management and its decision to buy the TV Guide channel and website."

The arrangement plays out as part of Lions Gate's announced goal of financing fewer movies, and helps out Relativity by giving them a locked-in distributor. Relativity says they intend to release ten films per year, and this means that they'll have to spend less time shopping around for a deal (they also have a co-financing arrangement with Universal to fund 75% of the studio's product through 2015).
categories Movies, Cinematical