German home entertainment specialist/license trader VCL Film + Medien has reduced its sales forecast for the present fiscal year from the previously announced Euros 25m-30m to Euros 18m.
In a statement, the company explained that this has been "due to the stagnating market development within the German home entertainment segment since the beginning of the year, the drop in sales due to the recent heatwave, and the delayed closing of the agreements with the US major."
At the end of May, VCL had revealed that it was "at an advanced stage in negotiations" with a US major - industry insiders suggest that this could be MGM - to handle part of VCL's film repertoire via an independent label. It was argued that this arrangement would free up "the urgently needed liquidity" for VCL to acquire more films and to advance its process of stabilisation.
In the meantime, VCL now reports that bilateral signed agreements have been concluded with the US major and a letter of commitment signed with Comerica Bank in Los Angeles. "The master agreements with Comerica and the guarantors are almost finalised and some of them are ready for signature," the statement said.