Toronto-based Nelvana Limited, an integrated family entertainment company,
has formed a multi-layered partnership with German-based production house
RTV Family Entertainment AG, a leader in children's programming in Germany.
The agreement includes a significant distribution deal for current and
library programs and a 3-year deal for future productions and
co-productions. Through the deal, RTV will bring Nelvana's library of shows
to TV, home video, and merchandising venues across Germany, Eastern Europe,
and select Nordic territories. The distribution deal pays Nelvana US$10.25
million in cash, payable in full within one year. Nelvana will receive
proceeds from the library, after RTV recoups its initial investment. After
RTV's license term is up, all rights revert back to Nelvana. The output
deal consists of a 3-year $22 million reciprocal distribution arrangement
between the two parties. Beginning in 2000, RTV will distribute a minimum
of 65 episodes a year of new Nelvana programming in Germany and other
territories. In turn, Nelvana will distribute a minimum of 26 episodes a
year of new RTV programming in the Americas. Both parties intend to
maximize the merchandising rights in their respective markets. "This
agreement represents the continuation of many years of co-production
between Nelvana and RTV which has resulted in successful RTV titles
produced by Nelvana, such as LITTLE BEAR, BLAZING DRAGONS, and RUPERT,"
said Peter Hille, Chairman of the Board of RTV. "This partnership helps
meet several of our strategic objectives -- the continued
internationalization of our activities and the consolidation of our
position in our key domestic markets." Michael Hirsh, Co-Chief Executive
Officer of Nelvana said, "This relationship is both financially and
strategically attractive. With RTV's strong broadcast relationships in
Germany, we are confident our programming will receive excellent broadcast
placement in this market."



Read Micheal Hirsh's article about Nelvana and co-productions in Animation
World Magazine.