• Spyglass, Intermedia to Merge
• Film, TV Director Ted Demme Dies
• "Rings" is on a roll at the North American box office.
• Benjamin Bratt signs up for WWII pic "Great Raid"
• Pierce Brosnan Begins Filming Latest James Bond Film
• Sundance Film Festival DealMemo
  • Miramax Films
  • Samuel Goldwyn Films
• 'Good Girl' Aniston shows bad side in Sundance film
• A New Digital Cable Network Devoted To Documentary Films
• Christa Saredi to shut up world sales shop.

Spyglass, Intermedia to Merge

Film companies Intermedia and Spyglass Entertainment Group announced plans on Monday to merge, creating one of the world's largest independent film producers.

As anticipated, independent powerhouse Intermedia has signed an agreement to merge with Gary Barber and Roger Birnbaum's Spyglass Entertainment. This creates an entity with an annual output of major movies as big as any studio and bringing The Walt Disney Studios (TWDS) into the company as a shareholder and potential distribution partner.

Spyglass will operate autonomously alongside Intermedia, Graham King's Initial Entertainment Group (IEG) and the smaller production outfit Pacifica under the Internationalmedia AG banner, the Munich-based holding company which is publicly listed on Germany's Neuer Markt. The deal should be completed by the end of February at which time the new shareholding structure will be made public.

As part of the arrangement, Barber and Birnbaum join the management board of Internationalmedia and become major shareholders and co-chairmen with Moritz Borman. They will manage the worldwide operations of the Intermedia/Spyglass group.

Borman is now sole chairman of Intermedia, since, as anticipated in Screendaily (Dec 21), current board members Nigel Sinclair and Guy East will step down from their current positions as co-chairmen and leave the board. But the two, speaking in Park City yesterday, stressed that they would remain with the company as consultants and producers; Sinclair based in the Intermedia Los Angeles offices and East at Intermedia London. While they would not comment, it is understood that they are selling most of their shares in the company which should net them tens of millions of dollars each.

"We set out to build this company up five years ago and that is what we've done," said East. "We will remain as shareholders, consultants and producers but we are retiring from active management." Sinclair said he would see through films which he initiated at Intermedia before starting producing, while East will seek out European projects in Europe. They said that they had not decided yet whether they would formalise their axis into a production outfit.

Meanwhile Sinclair said that with Spyglass on board, the group was nearing its target of delivering between 18 to 22 major movies a year - a volume of pictures which would theoretically help the company reach its 2001-2 sales target of $312m for the year. The group's profits are principally derived from distribution fees, production fees and overages which can only be generated by keeping a high volume of films. With Spyglass, for example, comes two completed films (The Count Of Monte Cristo and Dragonfly), two in post-production (Abandon and Reign Of Fire) and two in production (The Farm and Shanghai Knights). When Intermedia bought IEG, it is understood to have earned up to $10m worth of overages from Traffic. If, as is now likely, the sales target is met, the group's share price should be protected.

As for Intermedia itself, it is close to delivering a slew of pictures including Plague Season, National Security, K:19 - The Widowmaker, The Quiet American and Adaptation. "We released about 12 films last year," said Sinclair, "and we have seven in post. This year we should have about 20 films and another 12 will make it into production. The combined group should therefore be delivering as many films as a studio." East added that Intermedia's library is now at about 120 movies including titles from Intermedia itself and acquired libraries from Mayfair Entertainment International and Largo Entertainment.

The company's biggest picture to date - Terminator 3: Rise Of The Machines is also being readied for production in Vancouver this year, with deals recently closed with Warner Bros domestically and Columbia TriStar Film Distributors International for international rights. The Warner deal is said to have been worth $50m, the Columbia TriStar deal $70m. As to the budget of the film, it is reported to be as high as $170m.

The deal essentially makes Spyglass a public company, a strategy it had been pursuing independently on the Neuer Markt last year before the market's appetite for entertainment companies nosedived. Ironically, while other share prices tumbled, only International Media has remained resilient.

Spyglass's deal with Disney for domestic and much of international distribution remains in place and is unaffected by the merger as is its deals with KirchMedia in continental Europe, Canal Plus, Svensk Filmindustri and its other international partners. The exact percentage Disney now has in Internationalmedia - inherited from its equity stake in Spyglass - has not yet been disclosed, but the association could be crucial for Intermedia which has crucially lacked a domestic distribution ally. Its costly John Travolta drama Basic, for example, still has no US distributor attached.

"There is no official first look deal," explained Sinclair, "but obviously Disney will enjoy the relationship with the company it should as a shareholder." And in the statement announcing the merger, Dick Cook, chairman of The Walt Disney Motion Picture Group said that Disney was "excited with the new Intermedia/Spyglass group. We look forward to continuing and expanding our relationship with the merged companies."

The Intermedia/Spyglass group now boasts a wealth of Hollywood ties, not least of which is the Birnbaum/Barber team which has enjoyed success together at Spyglass (The Sixth Sense, Shanghai Noon) and separately - Birnbaum at Caravan Pictures and 20^th Century Fox, Barber at Morgan Creek.

Graham King brings deals into the group with Catherine Zeta-Jones' Milkwood Films and Leonardo DiCaprio's Appian Way, while Intermedia now has first-look deals with Mirage Enterprises (Sydney Pollack & Anthony Minghella), Baltimore/Spring Creek Pictures (Barry Levinson & Paula Weinstein), C-2 Pictures (Andy Vajna & Mario Kassar), Grande Via (Mark Johnson), Outlaw Productions (Bobby Newmyer & Jeff Silver), Saturn Pictures (Nicolas Cage), Trigger Street Productions (Kevin Spacey), Lucid Film (Ryan Philippe), Type A Films (Reese Witherspoon) and Ultra Films (Kate Winslet) as well as a second-look deal with Ridley & Tony Scott's Scott Free Productions.

Euro Capital Advisors, led by Mark Dyne, were the exclusive facilitators of the Spyglass/Intermedia transaction.

Film, TV Director Ted Demme Dies

Ted Demme, a film and television director whose credits include the film "Blow," died after playing basketball. He was 38.

Demme was participating in a celebrity basketball game at the private Crossroads School when he was stricken Sunday, said Ted Braun, a spokesman for Santa Monica-UCLA Medical Center.

Paramedics rushed Demme to the hospital's emergency room in full cardiac arrest. He was pronounced dead 20 minutes later.

The cause of death has not been determined and an autopsy will be conducted, said Lt. Cheryl MacWillie of the Los Angeles County Coroner's Office.

Demme, a nephew of director Jonathan Demme, directed Johnny Depp and Penelope Cruz in last year's "Blow." The film was based on the true story of George Jung, who was the American connection to the Colombian cocaine cartel in the late 1970s and early '80s when the drug became hip.

Demme, who lived in West Hollywood, also directed the 1996 film "Beautiful Girls" and was a director on the 1999 television series "Action."

His uncle, Jonathan Demme, was director of the 1991 film "Silence of the Lambs," which won the Oscar for best picture. He also directed the films "Philadelphia," "Married to the Mob" and "Something Wild."

"Rings" is on a roll at the North American box office.

New Line's "Lord of the Rings: The Fellowship of the Ring" topped the rankings for a fourth consecutive weekend with an estimated $16.2 million in ticket sales. That brought the domestic haul to $228.3 million through 26 days. Combined with an estimated $280 million in foreign box office for the Peter Jackson-helmed fantasy, "Rings" now has grabbed more than $500 million worldwide.

Universal's Russell Crowe starrer "A Beautiful Mind" added 369 theaters for a total 2,222 and finished No. 2 on the weekend with an estimated $15.8 million. Its domestic total rose to $59 million.

In perhaps the weekend's most downbeat development, Sony's "Ali" fell from the top 10 in only its third week. Its estimated $3.2 million session represented a big 54% drop from the previous frame.

By contrast, USA Films' "Gosford Park" landed in the top 10 at No. 9 in its third weekend after adding 387 theaters in its limited-release run. "Park," a period drama helmed by Robert Altman, is a bona fide commercial success after converting specialty-market buzz into a $3.8 million weekend gross from 518 theaters.

"We're poised to continue to push this thing out," USA distribution president Jack Foley said. "We'll always react to the opportunity, and this is certainly an opportunity."

Paramount Pictures suddenly seems Synergy Central, as its pictures benefit from marketing on the cable TV networks owned by its Viacom parent.

Paramount/MTV Films' "Orange County," the weekend's sole opener, grossed an estimated $15.1 million in third place. "Jimmy Neutron: Boy Genius," a Paramount co-production with Nickelodeon, marked a fourth solid frame, finishing sixth in with $5.5 million.

"I think that's what (Viacom chairman) Sumner Redstone always envisioned," said Paramount distribution president Wayne Lewellen said.

Meanwhile, Disney's "Monsters, Inc." finally fell from the top 10 in its 11th weekend. But the family tooner took in another $2.2 million to become the highest-grossing Disney/Pixar collaboration ever, passing "Toy Story 2" with a domestic haul of $247.4 million to date.

Industrywide, the weekend marked a 12% downtick from the previous session at $108 million in total grosses, according to box office tracker ACNielsen EDI.

The weekend was off an even greater 37% from a year earlier. But that's primarily because the 2001 weekend was part of a long Martin Luther King holiday session.

"I don't think it's a meaningful comparison," EDI executive VP Dan Marks cautioned.

One film opens wide Friday for this year's MLK weekend -- Disney's teen drama "Snow Dogs." Also, Sony/Revolution's military drama "Black Hawk Down" and Miramax's lit-adaptation "The Shipping News" expand from limited to wide release.

Sony's "Black Hawk Down" added 12 theaters for a total 16 this weekend and grossed an estimated $725,000, or a capacity-level $45,313 per venue.

Revolution partner Tom Sherak said the picture's slow rollout has been part of a carefully conceived strategy to build excitement in the big media markets of L.A. and Gotham prior to expansion to 3,000 theaters.

"It's like a thoroughbred we've been holding back as it heads around the turn," Sherak said. "This picture is being handled first class. The marketing and distribution people (are) doing a really good job."

Miramax sailed "Shipping News" into 53 more venues at 266 and hauled up $1.3 million, or $4,700 per site.

The Kevin Spacey starrer, filmed in Newfoundland, continues to enjoy solid Canadian support in its domestic run, with its total now docked at $6 million. But prospects for wide release are considered much less rosy than for "Black Hawk," as critics have not been kind to the Lasse Hallstrom-helmed drama.

Elsewhere among limited releases this weekend, Universal Focus' chopsocky actioner "Brotherhood of the Wolves" opened in 21 theaters in 13 markets to devour $473,000, or a voracious $22,523 per venue. The French-language picture expands to 85-100 locations in 25 markets on Friday.

Miramax's "In the Bedroom" expanded 217 engagements to 424 and rolled up $3 million, or a firm $7,075 per playdate for a $8 million tally to date. The studio's French-language laffer "Amelie" expanded 33 theaters to 260 to fetch an estimated $1.1 million, for a $4,230 average and $19.3 million total.

Lions Gate prison drama "Monsters Ball" mashed out another $133,000 from eight L.A. and Gotham theaters for a festive $16,600 average and $525,000 gross. The Billy Bob Thornton-Halle Berry starrer will add a few markets over the next couple of frames prior to unspooling in a total 500 theaters Feb. 8.

New Line family drama "I Am Sam" grossed $22,000 as it continued in a single L.A. venue. The Sean Penn-Michelle Pfeiffer starrer -- sporting a $145,000 total to date -- broadens into wide release on Jan. 25.

Warner Bros.' World War II drama "Charlotte Gray" grossed $178,334 in expanding 47 engagements to 52 for a $3,430 average. The Cate Blanchett starrer will maintain current distribution for now.

Benjamin Bratt signs up for WWII pic "Great Raid"

Benjamin Bratt has enlisted in "The Great Raid," a Miramax drama based on a true incident in the last days of World War II.

Gen. Douglas MacArthur organized a secret raid on a POW camp called Cabanatuan, where 500 American prisoners faced certain doom. His pick to lead the mission, the proud Army ranger Col. Henry Mucci (to be played by Bratt), was forced to get a crash course in guerrilla warfare from an AWOL Army mechanic turned guerrilla fighter.

Bratt recently played the title role of Leon Ichaso's "Pinero," about the drug-addled Latino poet and playwright Miguel Pinero. Miramax released the film late last year for an Oscar-qualifying run.

He will next be seen in "Abandon," a thriller in which he plays a detective helping a college student (Katie Holmes) search for her missing boyfriend.

Pierce Brosnan Begins Filming Latest James Bond Film

Shaken not stirred, James Bond is back and the world's most famous spy has all the guns, gadgets and girls he needs to beat off the bad guys.

Forty years after Ursula Andress emerged so memorably from the sea at the start of "Dr No," cameras started rolling on Monday for the 20th Bond film.

For "Billion Dollar" Bond, this is Pierce Brosnan's fourth movie as the dapper secret agent and he says fondly of the part "It's like slipping on a comfy pair of old slippers."

A spokeswoman for the production company said: "We call him our Billion Dollar Bond because his three Bond films have made $1 billion."

Brosnan, following in the elegant footsteps of Sean Connery and Roger Moore, said: "I'm honoring my contract by playing him for the fourth time and it would be wonderful to do another. After that I don't know."

More than half the world's population has seen a James Bond film. They used to be compulsory viewing for Soviet KGB agents fascinated by Bond's killer gadgets.

Bikini-clad starlets have launched a million male fantasies. The official James Bond fan club -- post office box number 007 -- boasts members from Fiji to Estonia. It is the most successful film franchise in cinema history.

"Bond 20" -- the film is as yet officially untitled -- begins in the demilitarized zone between North and South Korea with a spectacular high-speed hovercraft chase. The action then zaps around the globe from Hong Kong to Havana.

New Zealand director Lee Tamahori certainly won't be changing the winning formula of a series that ranks alongside "Star Wars," "Indiana Jones" and now "Harry Potter" and "Lord of the Rings" as a surefire hit at the box office.

"I'm not going to turn him into a sensitive New Age guy on the shrink's couch," Tamahori promised before shooting began. "Bond saves the world and is always running about chasing women."

Memorable villains are all part of that formula and the producers of "Bond 20" are hoping they can measure up.

Korean-American Rick Yune is already a master of pre-shoot hype, promising in his carefully honed soundbite: "Bond is going to have his hands full with me."

And fellow bad guy Toby Stephens is phlegmatic about being runner-up in the Bond stakes: "I kind of knew I would never get to play James Bond but being the villain is definitely second-best."

Sundance Film Festival DealMemo

Miramax Films

In the first acquisition deal at the Sundance Film Festival, Miramax Films has taken worldwide rights to "Blue Car," tyro feature writer-director Karen Moncrieff's lyrical coming-of-age drama.

Miramax is shelling out between $1 million and $2 million in its preemptive bid.

The studio is also in final negotiations for worldwide rights to Gary Winick's "Tadpole," starring Sigourney Weaver. Fine Line Features and Fox Searchlight had also been bidding for the film.

Other films expected to sell in the next day or two are "May," "Better Luck Tomorrow," "The Good Girl" and "The Dancer Upstairs."

"Blue Car" stars newcomer Agnes Bruckner along with David Strathairn, Frances Fisher, A.J. Buckley, Regan Arnold and Margaret Colin.

The film centers on a gifted but emotionally scarred 18-year-old girl who writes poetry -- a peaceful hiding place from a broken family. She finds solace in her English teacher, who encourages her to write. But what starts out as a mentoring relationship becomes increasingly complex as the tension in the girl's family escalates.

Samuel Goldwyn Films

Samuel Goldwyn Films has acquired U.S. distribution rights to Oliver Hirschbiegel's Teutonic box office hit "Das Experiment," Germany's official entry for this year's foreign-language film Oscar.

Starring Moritz Bleibtreu ("Run Lola Run"), the psychological thriller examines the social interaction within the confines of a makeshift prison when 20 male participants are hired to role-play either prisoners or guards.

Based on Mario Giordano's novel "Black Box" and adapted for the screen by Giordano, Christoph Darnstadt and Don Bohlinger, "Das Experiment" grossed almost $8 million at the German box office.

The film was sold by Senator Intl., the international sales arm of German indie media giant Senator Entertainment.

'Good Girl' Aniston shows bad side in Sundance film

She hit mega-stardom playing good girl Rachel Green on television show "Friends," but at the Sundance Film Festival Sunday Jennifer Aniston was exhibiting some bad behavior in her new movie, "The Good Girl."

If early crowd enthusiasm holds out, her role as a Texas girl with a dead-beat husband and a dead-end job may just help Aniston prove that good girls can finish first.

Despite TV celebrity, Aniston's record at movie box offices has been less-than-stellar with roles in high-profile, yet low-grossing films like romantic comedy "She's The One" (1996) and last fall's love story "Rock Star."

"The Good Girl" premiered at Sundance, and it is just the opposite: a low-profile independent movie from the director and writer of 1999 independent film "Chuck & Buck." Distributors at Sundance, a top market for independent film buyers, are circling the film like hawks over the Texas prairie.

Fresh from the premiere, Aniston was answering reporters' questions about the movie, and inevitably up popped the question about the actress' "good girl" image.

"Absolutely ... it's a burden. It's just frustrating. It's just annoying," she said.

In the movie, Aniston finally gets to show she's not just another pretty Hollywood face. She plays Justine, who sells cosmetics at a small-town retail store. She's been married seven years to Phil (John C. Reilly) who spends most of his time smoking pot with his buddy, Bubba (Tim Blake Nelson).

Justine and Phil are trying to have a baby, with no luck. She loves him, but life with the constantly stoned Phil is lonely, and she wants desperately to escape the monotony.

Despite her own misgivings, Justine dives into an adulterous affair with a younger man and colleague, Holden (Jake Gyllenhaal).

Justine knows Holden is, as she puts it, "at worst a child and at best a demon," but she can't help herself.

When Bubba learns of the affair, Justine starts on a downward spiral of bad to worse in an effort, she says, "not to hurt anyone," especially her husband.

DARK COMEDY

Fans of "Chuck & Buck," will remember its story about a gay man who comes to Los Angeles to be near his boyhood friend, and ends up stalking him. It was funny, but it had a sinister side. Despite it's name, "The Good Girl" falls into the same category. Its a darkly humorous tale that asks the question: what is a good girl, really?

It's a challenging role for Aniston because it strays from the mainstream romances she's appeared in to date.

"It's one of the hardest things I've done," she said. "I drew from my life, like we all do, and there were elements of my upbringing ... loneliness, sadness, depression, which I think we all come across. Whether you live in a small town in Texas or a big city," she paused, "and you're loaded with money."

Aniston likely falls into the latter category. Between a multimillion dollar salary for "Friends" and film star husband Brad Pitt, Aniston is doing fine financially.

Her fame might make people think she would be a Hollywood diva, prone to star roles where she tops the marquee. Yet, the "The Good Girl" is a true ensemble piece. Nelson has his own tense and, at times, harsh scenes with Aniston.

"Most stars have a tendency to take care of the rest of their careers while they are playing a role. ... Jennifer never did that. She had to take certain risks. She always did it and that to me is the mark of a real actor," he said.

Aniston said she will continue working in independent movies because, "There are only so many ways you can play a romantic comedy ... but they're not interesting."

She'd rather have roles like "good girl" Justine, who really isn't that good. Or is she? Just exactly what makes a good girl in 2002? It's a question that, even though she's always asked, Aniston doesn't really have the answer.

"That's a loaded question," she said. And after rattling off a long list of qualities, she finally cocked her head and answered, rhetorically: "I don't know, what is a good girl?"

A New Digital Cable Network Devoted To Documentary Films

Sundance Channel will launch a new digital cable network devoted to documentary films.

Owned and operated by Sundance Channel, the new network -- tentatively titled Sundance Documentary Channel -- will feature independent nonfiction films, including shorts and features from the U.S. and abroad. The launch is set for the second half of the year.

"I've always had a keen interest in documentaries and their importance," Sundance Channel founder Robert Redford said during a press conference at the Yarrow Hotel.

"There (were never) many outlets for them, but documentaries have evolved in quality and into a very compelling form of storytelling. I hope and believe as documentaries move forward, they will serve another purpose -- especially those that deal with social issues that the mainstream doesn't."

Sundance is in discussions with cable and satellite operators about carrying the new net, but no agreements are in place yet. While Sundance Channel is a non-commercial pay service, the new net will be available to customers who subscribe to digital tiers. The channel's programming model will not allow for the commercial interruption of films or the editing of content in any way, but it may have sponsorships.

Cable operators have so far been responsive to the plan for the new network.

"The idea of a channel dedicated to documentaries has considerable merit," EchoStar VP of programming Michael Schwimmer said. "The fact that it has the Sundance imprimatur provides that channel with real additional value."

Since its launch in 1996, Sundance Channel has premiered numerous award-winning docus, including "Dark Days," "Who Is Bernard Tapie?" and "Genghis Blues."

Currently available to 55 million homes, Sundance Channel is a venture of Robert Redford, Showtime Networks and Universal Studios.

At the press conference, Redford also announced the launching of the Sundance Documentary Fund. Previously known as the Soros fund, it will provide $4.6 million in financing for documentaries, of which $1.5 million will be allocated annually to documakers.

Christa Saredi to shut up world sales shop.

Veteran film sales agent Christa Saredi is to shut up shop this Spring after more than two decades in the business.

The decision means the closure of the highly successful Zurich-based outfit that bears her name - World Sales Christa Saredi - as well as Orfeo Films International, a Cologne-based joint venture headed by Helen Loveridge and co-owned with Germany’s Pandora Filmproduktion.

The move was announced by Saredi to clients over the Christmas-New Year break and will only become effective after a transitional period, extending to March at least. "Nobody is just walking out and shutting the door," said Saredi. Loveridge will attend the forthcoming Berlin festival, but neither company will make the trip to Cannes. Remaining rights are expected to revert in most cases to the films’ producers.

In addition to their own personal reasons for having enough of the sales business, Saredi and Loveridge point to changes in the industry which make life as an independent ever tougher.

"Consolidation is a big factor. Competition is very tough and deep pockets are needed," said Saredi. Saredi, who has nurtured auteur directors including Jim Jarmusch and Aki Kaurismaki, points to the growing difficulty of retaining talent, which previously stuck with regular production sales arrangements. Talent is now aggressively courted by other agents and sales and finance outfits which are part of multinational corporations.

"Several of the truly successful directors from our catalogue, and also some of the younger ones, look for new alliances for each project, others have found a home with companies that are bigger, or simply have deeper pockets."

She also said that with the indie arms of the major companies picking up sales territory or world rights on ever more films there are thinner pickings for specialist sellers.

Pandora Filmproduktion, owned by Reinhard Brundig and Karl Baumgartner, will now refocus its efforts on production. Loveridge, who is said to share Saredi’s frustration with the current industry situation is "looking for fresh challenges in the film business".

Last week Orfeo announced that had sold US rights to Samsara, the German-Indian romantic drama that premiered at Toronto last year, to Miramax Films (Screendaily, Jan 9). Odeon Films bought the picture for Canada. Orfeo also added to the Asian release of Mira Nair’s Golden Lion winner Monsoon Wedding, selling Japanese rights to Media Suits and Taiwanese rights to Sinomovie.