Germany's RTL Television, has signed a theatrical distribution deal with Constantin Film for Germany and Austria.

The deal, which comes into force from the beginning of next year, will cover up to 10 titles annually, with RTL covering p&a costs and Constantin handling physical distribution.

RTL Group has long been keen to re-engage with the U.S. features market and the present deal allows RTL back into the co-production and acquisition arena formerly filled by its CLT-UFA International division.

At the same time RTL, majority shareholder of the UK's Channel 5 is in talks with Rupert Murdoch's BSkyB television that could see Murdoch taking a stake in the embryonic terrestrial television channel.

Channel 5, which was launched in 1997, has yet to break through the 6% audience rating mark. Murdoch, who lost out in the bidding for the Channel 5 licence when the station launched, has long harboured desires to the enter terrestrial television market.