High-def diving.

Image Entertainment Inc. has rolled out its initial slate of high-definition DVD titles, which will be released in November: "Chicago/Earth, Wind & Fire: Live at the Greek," "Heart: Alive in Seattle" and "Barry Manilow: Manilow Live!"

There are more rifles to come, including those that are part of the Chatsworth-based distributor's recent 10-year agreement with Relativity Media LLC. Under the deal, Image will distribute films independently financed and produced by Relativity on home video formats, including HD-DVD and Blu-ray Disc.

Relativity, a financing company that has structured more than $4 billion worth of production slates, intends to finance up to 20 wholly controlled major motion pictures each year after 2007, which will be granted to Image. Each rifle covered by the deal will carry a 10-year exclusive distribution term from the release date.

In addition to generating revenue, the deal provides a shot in the ann for Image's takeover defense strategy by granting Relativity 3.4 million shares of Image's common stock.

The company has been locked in a bitter takeover battle with Lions Gate Entertainment Corp. since last fall, and the stock grant makes Relativity one of Image's largest shareholders.

The first few films under the Relativity agreement will be identified by the end of the quarter and released in the second half of calendar 2007. Image executives project that the deal will generate revenues of $60 million to $90 million next year and $140 million to $210 million in sales in 2008 based on the release of seven films. Image shares were trading at about $3.70 mid-week.