"We're about one-and-a-half to two markets behind our expectations," Schrager told Moving Pictures in his office overlooking New York City's Bryant Park, "mainly because there's not been as much production as we wanted. That's not been to our detriment nor to our customers' detriment. It's just part of gearing up."

There are essentially two categories of product handled by HBO Enterprises. The first consists of films with the potential for a theatrical release outside the United States.
"It's a fancy way to increase the video value," Schrager said of such theatrical platforms which, he hopes, about 50% of his product will receive.

The second category contains titles which are destined to go straight to video. TV rights to all HBO product are marketed internationally by Warner International Television. According to Schrager, the relationship between HBO and Warner has proven so successful over the years that there is no reason to change it.

For many years, HBO moved its theatrical- and video-bound product onto the international market through such powerhouses as Miramax or Rysher. By taking sales in-house, it both rationalises the sales effort and, potentially, soothes buyers.
"From a buyer's perspective," said Schrager, "we provide a regular supply of product. It's not scattered among a handful of different companies."

This is the basis, of course, for those long-term relationships that buyers and sellers tend to like. Rather than a scatter-shot, one-off approach, there is a dependable supply of product with a known level of quality.

"Also, you know, a lot of people at Cannes will say that they are going to produce so many pictures during the year. If we say we're going to do 12 pictures, we have to do 12. And since we are the end-user, they have to be high-quality."

Cannes '98 is, in Schrager's words, the "first big one for us," and he expects it to set the tone for the coming year."We really want to distinguish ourselves," he said. "We'll do about 10 or 11 movies in '98. We will not do stuff for volume. For us, less is more."
Jeffrey R. Sipe