Toronto-based Nelvana Limited, an integrated family entertainment company,has formed a multi-layered partnership with German-based production houseRTV Family Entertainment AG, a leader in children's programming in Germany.The agreement includes a significant distribution deal for current andlibrary programs and a 3-year deal for future productions andco-productions. Through the deal, RTV will bring Nelvana's library of showsto TV, home video, and merchandising venues across Germany, Eastern Europe,and select Nordic territories. The distribution deal pays Nelvana US$10.25million in cash, payable in full within one year. Nelvana will receiveproceeds from the library, after RTV recoups its initial investment. AfterRTV's license term is up, all rights revert back to Nelvana. The outputdeal consists of a 3-year $22 million reciprocal distribution arrangementbetween the two parties. Beginning in 2000, RTV will distribute a minimumof 65 episodes a year of new Nelvana programming in Germany and otherterritories. In turn, Nelvana will distribute a minimum of 26 episodes ayear of new RTV programming in the Americas. Both parties intend tomaximize the merchandising rights in their respective markets. "Thisagreement represents the continuation of many years of co-productionbetween Nelvana and RTV which has resulted in successful RTV titlesproduced by Nelvana, such as LITTLE BEAR, BLAZING DRAGONS, and RUPERT,"said Peter Hille, Chairman of the Board of RTV. "This partnership helpsmeet several of our strategic objectives -- the continuedinternationalization of our activities and the consolidation of ourposition in our key domestic markets." Michael Hirsh, Co-Chief ExecutiveOfficer of Nelvana said, "This relationship is both financially andstrategically attractive. With RTV's strong broadcast relationships inGermany, we are confident our programming will receive excellent broadcastplacement in this market."
Read Micheal Hirsh's article about Nelvana and co-productions in AnimationWorld Magazine.