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|RCA Press Release for June 28, 1982|
Columbia Pictures Industries, Inc. and RCA Corporation today announced that they have entered into a new joint venture in home video entertainment for the marketing of programs in the United States and Canada.
Formation of the new joint venture follows the creation of RCA/Columbia Pictures International Video in June 1981 for the purpose of distributing video programs in other parts of the world.
The new venture was announced by Francis T. Vincent, Jr., President and Chief Executive Officer of Columbia Pictures Industries, Inc., a subsidiary of The Coca-Cola Company; Frank Price, Chairman and President of Columbia Pictures, the motion picture division; and Herbert S. Schlosser, Executive Vice President of RCA.
In making the announcement, Mr. Vincent said, "We are delighted with this agreement, which is in keeping with The Coca-Cola Company's stated strategy to further strengthen its profits from U.S.-based businesses."
Under the agreement, the new joint venture will have access to Columbia Pictures' extensive libraries of motion pictures and television programs, as well as future theatrical and television productions from Columbia Pictures and video music productions of RCA Records. The venture also will acquire new programs for distribution on cassettes and discs.
The new venture will continue and expand the operations of Columbia Pictures' Home Entertainment Division, which currently markets and distributes home video products.
RCA "SelectaVision" VideoDiscs, the company's software division, will continue to supply video discs to the RCA Consumer Electronics Division's distributor network for sale through more than 5,000 dealers nationwide.
The three executives said in a joint statement that the two joint ventures will give RCA and Columbia Pictures a worldwide operating base in the fast-growing market for home video entertainment.
RCA/Columbia Pictures International Video currently distributes home video material on all cassette formats in the United Kingdom and France and plans to expand into West Germany later this year.
Commenting on the new U.S./Canada joint venture, Mr. Schlosser said, "It is part of RCA's long-range program to make the company's entertainment businesses a major contributor to growth and profits in the years ahead. We want to make certain that we are in a favorable position to benefit from the new developments in home video entertainment."
Victor A. Kaufman, Vice Chairman of Columbia Pictures, said, "Columbia is very satisfied with the results achieved by the international joint venture, and we look forward to furthering our relationship with RCA through this new agreement. We are especially pleased that our participation in the new venture will be through Jonathan L. Dolgen, President of Columbia Pictures Pay-Cable and Home Entertainment Group."
Mr. Dolgen said, "We are delighted with the transaction, our new partner and our prospects for the future. We believe this agreement will strengthen our position in the rapidly-expanding home entertainment market."
Robert D. Summer, President of RCA Records, said, "The new venture will enhance the opportunities for our recording artists to share in the expected boom in home video entertainment through the 1980's and beyond."
Details of the new venture's organizational structure will be announced at a later date.