The Sandrew Metronome Group, 50% owned by Schibsted, has cooperated with Warner Home Video regarding video distribution in all Nordic countries since 1999/2000. The existing agreement between the two parties, where Sandrew Metronome distributes the video films of Warner in addition to their own films, will expire on June 1st 2005.
Warner Home Video has decided to start their own video distribution in The Nordic region as part of their international strategy. Sandrew Metronome will from June 1st 2005 enter into a new agreement with Warner Home Video regarding sale of Sandrew Metronome’s video products in the Nordic Market through Warner Home Video’s distribution activities. Sandrew Metronome will manage the marketing as well as production of their own Nordic and international films going forward. The new agreement with Warner Home Video does not affect the distribution of Warner’s cinema films, being the responsibility of Sandrew Metronome in the Nordic region.
A reorganisation of the Sandrew Metronome Group will be carried out as a consequence of the new agreement with Warner Home Video and a sale of the cinema operations in Sweden. The operating revenues of the Group will be reduced due to these changes in the operations, but the operating profit at the Group level will be in line with previous years after this reorganisation.
The Managing Director of Sandrew Metronome, Morten Kongrød, says:
-This agreement ensures Sandrew Metronome’s video products a substantial market position in the future retail market. At the same time the new agreement makes the Sandrew Metronome Group the chance to focus on the cooperation with local partners in the Nordic region.
– The involvement in both national feature film in the Nordic countries and international film procurement will be strengthened. This will ensure Sandrew Metronome an even stronger position in the growing video and DVD market in the Nordic region.
Contact person:
Morten Kongrød, Managing Director, Sandrew Metronome Group – Tel: +46 876 21700
Oslo, 30 September 2004
SCHIBSTED ASA
Elisabeth Blom Tindlund
Investor Relations