Vestron to produce movies for video

An article titled Vestron to produce movies for video, published by The Times Leader on January 10, 1986.

An article in The Times Leader on January 10, 1986

The article's text:

Vestron Inc., the nation's second-largest distributor of videocassettes, has announced the formation of a new division that will produce and distribute low-budget movies.

The move was seen as an attempt by Vestron, based in Stamford [Conn], to shake itself of its reliance on major motion picture companies for video rights.

Many of Vestron's initial agreements with studios are about to expire, and video rights have become increasingly expensive since Vestron first signed thos agreements several years ago.

"The idea is to have a little bit more control over our own destiny," Ramond Berstein, Vestron's vice president for business affairs, said Tuesday in announcing the formation of Vestron Pictures.

The new division plans to produce or acquire 10 to 12 films this year [1986], all with budgets under $5 million, the company said. The films will be released in theaters first but will be followed soon thereafter by release on videotape for home market.

The new unit's first film is Rebel, starring Matt Dillon., and company offiicals said it has agreemtns to work with producers Steve Tisch (Risky Business) and Gene Kirkwood (Rocky).

Vestron President Jon R. Peisinger said the venture into movie production simply extends the company's involvement with studios.

Vestron, the No. 2 player in the videocassette industry behind CBS-20th Century Fox, started business in a Stamford warehouse in 1981. It has grown into an international corporation with more than 150 employees and projected 1985 sales of nearly $200 million.

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