Lionsgate, Mach 8 in VOD distribution deal

Lionsgate has cut a deal with Mach 8, a leading U.S.-based source of Mexican cinema, to bring the company's Spanish-language movies to U.S. and Canadian homes.
The deal gives Lionsgate North American home video and video-on-demand distribution rights to Mach 8's entire 62-title catalog as well as all upcoming releases.
The acquisition marks Lionsgate's third foray into the lucrative Spanish-language entertainment market.
Last month, Lionsgate struck a deal with Panamax Films, the studio headed by ex-Telemundo chief Jim McNamara, to produce and acquire films for theatrical release for U.S. Latinos.
A year ago, Lionsgate teamed with Venevision to release 12 to 20 Spanish-language movies a year directly to video in the U.S.
"This is just another important element in our multifaceted strategy to address Latino audiences," said Steve Beeks, president of Lionsgate Entertainment. "There are 30 million people in the United States of Hispanic descent, and that number is expected to grow to 40 million in less than 10 years. This market is dramatically underserved, and we believe we can build a significant presence, very similar to what we have done with the urban market."
Beeks said more deals may be announced shortly.
"When we finally put all the pieces together, we will address virtually every aspected of filmed entertainment for Latinos," he said.
The Mach 8 deal officially gets under way this spring, when the first titles will be released on DVD. The films will be released as single DVDs and also in an assortment of boxed sets.
"Study after study shows the growth of the buying power of the Latino community in the United States," Beeks said. "It is by far the fastest-growing segment of our population and we have always recognized the importance of putting out quality releases that reflect their tastes."
"Mach 8 is excited about this partnership and looks forward to working with Lionsgate to bring all things Latin into the forefront of the North American marketplace," Mach 8 partner and CEO Robert Arevalo said. "Lionsgate has always supported Latin cinema and Mach 8 is the center of the future of `new' Mexican cinema, creating a perfect team."