German media group CineMedia Film is set to quit rights trading and licensing just one year after its launch into the market.
The Munich-based company made its surprise withdrawal after admitting that figures for the last financial year revealed that sales forecasts for it rights trading and licensing activities would fall far short of original expectations.
Delayed sales revenues from a package of films from ICON, including the Mel Gibson box-office hit What Women Want and the TV movie When The Sky Falls, are believed to have contributed to the decision.
In addition, production revenue failed to meet targets as subsidiary TaunusFilm was unable to complete all of its TV films planned for 2000.
According to provisional figures, CineMedia Film increased its sales by some 50% compared to 1999, to Euros102m, somewhat below the original target of Euros121m.
CineMedia now intends to refocus on its three core business areas: Cine Production, Cine Postproduction and Cine Solutions in future and is set to announce a restructuring strategy to promote continued growth in 2001.