In an ongoing effort to reduce costs, Jim Morris, President of Lucas Digital Ltd., has announced a restructuring of Industrial Light & Magic (ILM). Key changes have been made to the leadership team in a move to streamline management. To this end, Chrissie England, a twenty-four year veteran of ILM, has been named senior vice president of production. England was most recently vice president of feature production, a post she held for the last two years. Reporting directly to Morris, England will oversee all aspects of ILM's feature effects work.

UK-based entertainment and sports marketing company CSS Stellar has acquired a majority shareholding in Target Distribution from founder shareholder Tiger Aspect Productions (MR. BEAN). In June 2002, Target had agreed to a merger with the Just Group, with Just Group proposing a 54% stake in the company to be purchased with funds raised by shareholders. This deal fell through in late summer, although Target continued to pursue a financial and strategic partner.

Intertainer, an online broadband entertainment-on-demand site has filed an anti-trust suit against three major entertainment companies, AOL Time Warner, Vivendi Universal and Sony. Intertainer has accused the companies of conspiracy to fix prices in the digital distribution of entertainment. Intertainer's suit alleges that the three defendants have attempted to control the marketplace for entertainment content on demand, thereby hindering and delaying the emergence of the broadband content industry and Intertainer's video on demand services.

Capitalizing on the name-recognition of the Sony brand, the company announced that it will be renaming its domestic and international television divisions. Columbia TriStar Domestic Television (CTDT) and Columbia TriStar International Television (CTIT) will now operate under the names Sony Pictures Television (SPT) and Sony Pictures Television International (SPTI), respectively.

Elephant Productions, the UK-based media company behind such series as GRIZZLY TALES FOR GRUESOME KIDS and JOHNNY CASANOVA THE UNSTOPPABLE SEX MACHINE, is to join forces with animation company Fictitious Egg to launch a new studio, Elephant Egg. The studio plans to offer a full range of animation services including traditional 2D, Flash, CGI and Celaction, as well as development and co-production services. Sarah Muller, managing director of Elephant Productions, will head up Elephant Egg, with Andy Wyatt, managing director of Fictitious Egg, as head of animation.

Animation and family entertainment reps The Gotham Group have reemerged from the break up of Artists Management Group, where they functioned as AMG's animation agency, and have forged a strategic relationship with The William Morris Agency (WMA). The announcement was made jointly by Jim Wiatt, president and co-CEO of the William Morris Agency and Ellen Goldsmith-Vein, CEO/founder of The Gotham Group. WMA will also represent Goldsmith-Vein and Gotham in their role as producers and expect to announce a first look deal at a major studio shortly. Gotham also plans to branch out to live-action.

Production agency CeMEDIA (Central European Media Workshop) has added Hungary's FirkaFilm to its production network and named it "First Base Studio" for the CeMEDIA production pipeline. Firka will control the overall production process and subcontract to other CeMEDIA member studios. Under contract with Varga Studios, Firka has provided animation services for an ANGELINA BALLERINA special and most recently completed the animation for 5 episodes of the series MR. BEAN. CeMedia will be at MIPCOM to distribute nearly 50 hours of animation provided by their European member studios.

Executive producer Steve Schofield, along with creative directors Chris Jones and Loni Peristere, all formerly of Radium, have formed visual effects company Zoic Studios. The new company, based in Los Angeles, California, will provide visual effects and CG animation for commercials, music videos, feature film and episodic television. The team is currently providing effects for the new Fox show FIREFLY, as well as the popular series BUFFY THE VAMPIRE SLAYER and ANGEL.

Barrie Usher, president and CEO of Canadian children's entertainment company Cinar, has submitted his resignation effective September 15, 2002. George Rossi, senior vice president and CFO, will replace him in the interim until a new president and CEO is appointed. Cinar is emerging from a series of financial scandals that began in 1999, stemming from illegally obtained Canadian tax credits, non-approved investments in offshore accounts and the misappropriation of funds by senior executives.

New York-based 3D design and animation company Phactory Productions, Inc., has merged with broadcast design studio Ultraviolet to create UV Phactory. The newly formed creative solutions studio offers 2D and 3D design and animation, live-action production and strategic design solutions for advertising agencies and the broadcast and cable communities. The company has already begun work on a host of jobs including projects for Miramax, HBO, TBS and The Sci-Fi Channel. UV Phactory will operate under the management team of Scott Sindorf, Damijan Saccio and Jeff Linnell.