Pentamedia, the Chennai-based entertainment software major with a market capitalisation of over Rs 3,000 crore has entered into a 50:50 joint venture with Modi Entertainment Network (MEN) for production and marketing of television and Internet animation products.
"The object behind the JV is to put together production resources of Pentamedia and distribution and marketing skills of MEN to tap the domestic as well as the global market," MEN vice-chairman Lalit K Modi told Business Standard.
"The new company will specialise in animation movies and will use the existing distribution channel of Modi Entertainment _ through various global partners _ to distribute the products," said V Chandrasekaran, chairman and managing director, Pentamedia.
The JV company is also looking at expanding the existing production facilities of Pentamedia to cater to the growing animated products market.
"We think Pentamedia will have to expand the production capabilities by at least four to five times," Modi said.
The JV company, likely to be christened Modi Pentamedia Ltd, will produce and distribute animation movies for the Indian as well as foreign markets.
"We are in negotiations (with some companies) in Europe and the US for selling our animation products," Modi said.
The joint venture is looking at doing business worth about $15 million in the first year. The copyrights of the properties will be jointly held by the JV company and for the services rendered both the partners will be receiving a fee.
MEN was established in 1995 with an objective to establish a distribution network to distribute satellite-delivered encrypted pay TV channels through a network of about 70,000 (now consolidated to about 40,000) cable operators.
MEN launched ESPN in October 1995 and last year got the distribution responsibilities for Hallmark and Kermit channels. These services, launched in June 1999, have already got a reach of over five million, MEN claims.
MEN has also tied up with Bollywood Eros network for B4U Music and a blockbuster movie channel B4U Movies. In addition, fashion TV and MCM International (a European music channel) are also distributed by MEN in India.