MGM goes outside to enter interactive field.

New division to link with outside talents, developers

Metro-Goldwyn-Mayer Inc. has formed MGM Interactive, a new division which will manage the company's efforts in the CD-ROM and online arenas.

But MGM will break with Hollywood's conventional wisdom on interactive ventures by enlisting outside developers and talent to create its interactive wares, similar to the way studios work with outside producers on their movie projects.

MGM Interactive will also consider developing online products from outside sources - not just ones on which the studio owns the copyright.

The move comes as MGMF/JA strives to rebuild its studio operations following the 1992 takeover by lender Credit Lyonnais from then-owner Giancarlo Parretti. MGM will release up to 18 films this year, double the previous year's output.

The studio had been involved in interactive products since early 1994, with Ronald N. Frankel consulting on multimedia ventures for MGM. He will head the new division as executive vice president/general manager.

Studio model

MGM Interactive will be based at the studio's Santa Monica headquarters. MGM officials said the division will apply the studio model to product development, building a small in-house staff and cultivating relationships with top outside developers. This system allows for broad production capabilities without having to maintain a large overhead, MGM officials said.

MGM Interactive will primarily produce games and interactive products that tie into current and future MGM and United Artists properties. However, outside original material will also be considered by MGM Interactive. Those may be further developed into other media by MGM, including animation, television and feature films.

"MGM will approach the interactive business doing what we do best - building on the synergies within our company to cross-develop, cross-promote and distribute high-quality entertainment products," said Michael S. Hope, MGM executive vice president.

"Our focus will be on a broad portfolio of products and styles, drawn from a diverse array of designers, artists and technical experts," he said.

MGM Interactive products will be distributed through MGM/UA Home Entertainment. The first titles will ship later this year, with six to 10 slated for 1996.

The primary focus will be on IBM- and Macintosh-compatible CD-ROMs. Other gaming system platforms and online services will be considered later.

MGM currently has two interactive games on the market, the most current of which is "Rob Roy Legend of the Mist," a companion piece to the film "Rob Roy." Last year the studio released a CD-ROM based on its movie "Blown Away."