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A lucrative distribution deal between Canada’s Alliance Films and Hollywood movie maker New Line Cinema will end later this year, when the American company shifts into the hands of Warner Bros.

The move will end a long relationship between the two companies, which have worked alongside each other for the Canadian distribution of blockbuster franchises such as the Lord of the Rings and Austin Powers series.

Yesterday, Alliance Films spokesperson Candace Stevenson confirmed that the current contract between the two companies expires Dec. 31. Executives from Alliance Films were unavailable to comment further.

Under the new structure, Warner Bros. will handle the theatrical and video release of all New Line films in the United States and Canada.

Alliance, meanwhile, has appeared to be gravitating toward the lucrative French-Canadian film market.

Earlier this year, the Quebec government’s investment arm, Soci?t? G?n?rale de Financement, shelled out $100 million to grab a 51 per cent voting stake in Alliance Films as well as a 38.5 per cent ownership stake.

Wall Street firm Goldman Sachs has the rest of the holdings as part of the $2.3 billion takeover of Alliance Atlantis Communications Inc instant payday loan. last year.

Alliance Films, once called Motion Picture Distribution, had once relied on New Line for a major chunk of profit. But the face of the Hollywood company had been changing in recent years, and as of last year, New Line was estimated to represent only about 15 per cent of Alliance Films’ box-office revenue.

New Line was once known for its left-of-centre film concepts, with budgets that rarely surpassed $30 million, meaning that the movies were almost guaranteed to turn a profit. But the company’s approach changed after the high-risk, mega-budget Lord of the Rings trilogy became an international sensation.

The company began to embrace big-budget movies with broad audience appeal, major stars and ballooning budgets.

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