LONDON -- DNA Films, the U.K. lottery franchise run by producers Duncan Kenworthy and Andrew Macdonald, has agreed to a deal in principle with Polygram Filmed Entertainment for worldwide distribution of its pics.
Under the deal, which is set to be announced next week, PFE will put up a development fund for DNA and co-finance the movies alongside DNA's own lottery coin.
DNA has access to £29 million ($48 million) in lottery money over the next six years to co-finance 16 British movies with average budgets of around $6.5 million apiece.
The pact with PFE means that DNA will have the resources to fully fund all of its films. The company is not planning to offer itself as a co-financier of projects that already have other money attached. In this way, Kenworthy and Macdonald are hoping to ensure that they become the first port of call for British producers and talent with low-budget projects in early stages of development.
The partnership was awarded its lottery franchise by the Arts Council of England during the Cannes Film Fest last May, but signed its formal contract with ACE only in February after protracted negotiations.
DNA originally intended to raise co-financing for each of its projects on an individual basis, but after winning the franchise, the partners decided instead to seek a long-term distribution partner.
PFE, which was already in place as DNA's U.K. distrib, was always the leading candidate for the larger deal, and will now release DNA's films through its local distribution companies around the world, including Gramercy Pictures in the U.S., as well as handle sales in all remaining territories.
Kenworthy and Macdonald both have long-standing relationships with PFE. Kenworthy produced "Four Weddings and a Funeral" for PFE's Working Title Films and is about to start shooting the untitled follow-up, provisionally known as "Notting Hill" starring Hugh Grant and Julia Roberts.
Macdonald's "Shallow Grave" and "Trainspotting" were both released in several territories by PFE. He is currently in post-production on one segment of the Miramax movie "Alien Love Triangle," directed by Danny Boyle and written by John Hodge. The trio will then move on to shoot "The Beach" later this year.
DNA is one of three lottery franchises. The others are the Film Consortium, which has already shot two pics, and Pathe Pictures, which has yet to greenlight a movie.
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