Digital Productions Solutions (DPS), the animation unit of IDT Media, has entered into a joint venture with Vanguard Animation to co-produce and co-own all Vanguard properties, as well as buy a minority stake of Vanguard in the eight-figure range. The announcement follows on the heels of DPS's acquisition of a majority stake in Film Roman Inc.

With strategic partners in the TV and direct-to-DVD arenas, Newark, New Jersey-based DPS hopes to build a CG film library with Vanguard. Vanguard, founded by ceo John H. Williams, and president Neil Braun, has a four-picture deal with Disney, starting with VALIANT, as well as projects with DreamWorks and Nickelodeon/Paramount. Williams produced the blockbuster SHREK and is working on SHREK 2. Braun has been president of NBC, chairman/ceo of Viacom, president of Imagine Ent. and svp of HBO.

In addition to IDT's deep pockets, Vanguard plans to make use of the DPS virtual computer animation studio, an affiliate network, which consists of some 2,000 animation studios or animators around the world online with production hubs in Los Angeles, Newark and Israel.

"We've done what every other major studio has wanted to do," said Morris Berger, president of DPS. "We've created a worldwide virtual studio to produce 3D computer graphic animation at the highest quality, what we refer to as Pixar-like quality. We can do this in a more cost and time efficient manner than any other studio.

"We're highly scalable and we can mange multiple projects at the same time… without sacrificing quality, speed or efficiency," Berger claims. He said DPS can manage people in distant locations, "better than most can manage somebody in their own studio."

Braun said "DPS has built a killer app in animation, layering on their worldwide telecom infrastructure an Internet protocol to literally create the virtual studio that other people only dream of. Coupled with their [IDT's] balance sheet and willingness to finance us, this positions us… to be an important player in the animation business," Braun continued.

"When we started this company," Williams added, "we wanted to find a different paradigm on how to make computer-animated films, and where we could cut down on the production cycle from a four to five year norm, to what would be a two-year cycle based on very carefully developed scripts with the goal of Pixar/SHREK-level animation at 50% of the cost After looking at various production solutions around the world, DPS offered a production technology solution we thought that would be incredibly valuable."

Williams continued, "The combination of us being creative and production partners, with the added clout of their financial capabilities will help us become a creative force that we think is in the category of what will be a Pixar of the future."

"We consider ourselves like a Pixar on steroids," said Berger.

They may see themselves as a powerhouse, but distribution, as well as a library and a creative reputation is important for the strong to survive, let alone reign. For the time being, DPS is relying on the relationships Film Roman, Vanguard and some of its other partners to sell projects and get distribution deals.

Berger said there are no immediate plans to create a distribution/sales arm at DPS. "We have a creative side, a production side, a financing side. We've moved a lot in the direction of where we want to be. Once these products are released, I think distribution channels will start opening up. We took a major step today in full-end feature distribution. The products will sell themselves. We're going to blow people away," he told AWN.

Braun confirmed that the channels will open when they offer their commercial creative with efficient financing. "Go to a major distributor/studio and not need their capital to make a film -- there are lots of studios interested in that kind of partnership," he said.

IDT also has an impressive board of governors as well as $25 million from Liberty Media, which owns 5% of IDT.

"Between Liberty Media and all the partners that IDT does business with, we can get into the door wherever we want to. We're waiting for the right time," said Berger. For now, they plan to create the product, then bring it to the studios.