Technicolor Motion Picture Corp., known for its state-of-the-art color film processing, has acquired Burbank post-production firm Miles O’ Fun, another step into the digital age for the one-time motion picture industry leader. As technology in the entertainment industry moves forward at breakneck speed, Technicolor is struggling to keep up. The acquisition of Miles O’ Fun is another step in Technicolor’s drive to diversify its business, remaining primarily a film manufacturing and processing company but moving further into the DVD manufacturing business and becoming a provider of digital cinema services. “Miles O’ Fun provided a complementary service for us and we reached a point two months ago that we decided it was time to expand that strategic alliance,” said Bob Beitcher, president of Technicolor Creative Services, Technicolor’s post-production unit. “(We can) help them build their business and they could help us build ours.” Terms of the deal which closed early this month were not disclosed. Miles O’ Fun is expected to continue to operate as a separate division of Technicolor. Technicolor and Miles O’ Fun have cooperated in some projects already The Lifetime Network’s “Any Day Now” and TV pilot “The Court” with Technicolor providing sound mixing and Miles O’ Fun sound editing and video post-production. Miles O’ Fun is considered one of the busiest digital post-production firms in the entertainment industry, with about 400 hours of episodic television scheduled this year. Beitcher said, with the deal, Technicolor hopes to grab more of the growing digital post-production business in Hollywood. Miles O’ Fun’s client list includes the CBS drama “Judging Amy” and ABC’s police drama “NYPD Blue” and “The Practice.” “Our goal in joining Technicolor is to bring our clients the technology, resources and expertise of the most important brand in content services,” said David Weathers, Miles’ co-president along with David Hankins. “Technicolor has some great ideas for shaping the future and we are thrilled to play a key role.” Nicolas Martin, an analyst with Aurel-Leven, says Technicolor’s move into digital media is in keeping with the actions of its competitors. Eastman Kodak Co. and Panavision Inc. are also moving forward with new digital technology, he said. “It’s a matter of time,” he said. “Print film will eventually be replaced by digital technology.” Miles O’ Fun was established in 1994 by former Todd-AO Studios producer Weathers, who formed the company with just two clients ABC’s “NYPD Blue” and CBS’s “Chicago Hope.” The following year, “NYPD Blue” co-executive producer Steven Bochco used them for two more of his series. Today, the company, with a staff of 12, has nearly 30 television series on its roster of clients with scores of mini-series, made-for-television movies and feature films, including last year’s “Miss Congeniality,” under its belt. The company has two Emmy nominations this year, for its work on “Anne Frank: The Whole Story” and “Dune.” Miles O’ Fun would not reveal sales figures. Technicolor’s net income last year, when it was owned by publicly traded British conglomerate, Carlton Communications PLC, was $216.6 million on revenues of $1.52 billion. Technicolor was acquired by French consumer electronics maker Thomson Multimedia SA in March for $2.03 billion. Technicolor’s move into digital technology began in 1998 with its acquisition of compact disk-maker Nimbus CD International, boosting the company’s position as a major DVD and CD manufacturer in the U.S., Beitcher said. The Miles O’ Fun deal follows Technicolor’s acquisitions last year of Montreal-based Covitec, a film lab and digital post-production firm, and Hollywood-based film lab Consolidated Film Industries. Those are only the most recent moves over the past three years for Technicolor, which has tried to place itself in the digital media market with acquisitions and strategic partnerships. In June 2000, Technicolor agreed to a joint venture with mobile telephone service provider Qualcomm Inc. to distribute feature films to movie theaters via communications satellites. Technicolor was founded in 1915 by Herbert T. Kalmus, who invented the film process that led to the first color motion picture. The company had been solely a film manufacturer and processor until 1981, when it began manufacturing videocassettes. Today, it is the largest processor of motion picture films and the biggest manufacturer of DVDs.
