Category: Business

Interactive entertainment producer NewKidCo International Inc., which develops games based on popular licensed characters such as WINNIE THE POOH and THE MUPPETS, announced its 2nd quarter 2002 results. The company had a net loss of $1.8 million for the quarter versus a net loss of $8.5 million for the same period last year. Income for the six months was a loss of $3.6 million versus a loss of $8.2 million last year, with revenue for the three and six months at $1.2 million and $3.1 million respectively versus $1.7 million and $5.3 million for the same period one year ago.

Korean animation studio Sunwoo Entertainment has announced the establishment of Sunwoo USA, headquartered in Burbank, California. The U.S. headquarters will be the new business development, talent recruiting and international content development arm of Sunwoo Entertainment, which has produced hundreds of episodes of television series including RUGRATS for Nickelodeon, PEPPER ANN and RECESS for Disney and THE FAMILY GUY for Fox. Jae Moh, the executive vice president of Sunwoo Entertainment, will become the CEO and president of Sunwoo USA.

According to THE HOLLYWOOD REPORTER, DreamWorks is in the process of enhancing its animation production capabilities and hopes these enhancements will cut the production time for CG animated features in half. This would allow DreamWorks to release two to three animated features per year. DreamWorks just closed two major financing transactions totaling $1.5 billion. The new financing consists of a $1 billion film securitization, which DreamWorks is labeling the first of its kind in the film industry, as well as a $500 million revolving credit facility.

Egmont Imagination, the international animation arm of Danish production and distribution company Egmont Entertainment, will be closed, according to a report in VARIETY. The announcement comes on the heels of Egmont joining forces with Danish film and television producer Nordisk Film in mid-August 2002. The new company will now be known as Nordisk Film.

UK-based distributor HIT Entertainment has announced the opening of HIT Entertainment Canada, Inc. Officially launched on August 1, 2002, the Toronto-based office will function under the leadership of vice president Pam Westman, and is comprised of an entirely Canadian staff who are responsible for video, DVD and audio sales and distribution, as well as marketing, consumer products, licensing and broadcast sales for HIT's brands in Canada. "HIT recognizes the importance of having a corporate office in Canada," said Rob Lawes, CEO, HIT Entertainment.

Vancouver-based independent producer Samantha Daley has launched Nudge Productions to provide strategic production consulting, product marketing strategy, production management and sales and marketing. Her current clients include Atomic Cartoons, Pork and Beans Productions Inc. and MX Solutions. "Current market trends show production work moving from large conglomerate studios to smaller boutique studios.

Citing the success of MONSTERS, INC. and strong sales of its Renderman animation software among other factors, Pixar Animation Studios announced higher than expected earnings for its fiscal second quarter ended June 29, 2002. For the quarter, Pixar earned $10.4 million or $0.20 per diluted share. These results compare to earnings of $8.8 million, or $0.17 per diluted share, achieved in the year-ago quarter. Revenues for the quarter were $22.8 million, as compared to $16.7 million in the year-ago quarter.

Nickelodeon has bought out the other 50 percent of educational network Noggin from joint venture partner Sesame Workshop, pending customary regulatory approvals. Financial details of the buyout were not disclosed. The channel will be operated and managed by Nickelodeon, with Noggin general manager Tom Ascheim continuing to oversee the networks day-to-day operations. Ascheim will report to Herb Scannell, president, Nickelodeon, TV Land and The New TNN.

Strega Imaging, a new visual FX and motion graphics design company, has opened its doors in Universal City, California. Partners and co-creative directors Colin Cheer and Michael Jackson gained their industry experience from their previous work on an eclectic array of projects. Cheer, an illustrator and designer, was involved in the early days of the desktop publishing revolution, and in 1997 he was recruited to head the 3D effects team at 525 Studios, working on effects for the series THE OUTER LIMITS along with other film and video projects.

Despite the strong box office performance of recent hits LILO & STITCH and THE ROOKIE, The Walt Disney Company has reported lower than expected earnings for the quarter and nine months ended June 30, 2002. Referencing the downturn in the international and domestic travel and tourism industry as well as the economy as a whole, Disney cited in particular the drop-off of attendance at its domestic theme parks and resorts, and the lack of television advertising dollars at the ABC television network.

NorthAmerican anime distributor A.D. Vision, Inc. (ADV), has partneredwith CoMix Wave, Inc., a Japanese anime and manga management andproduction company, to promote and popularize CoMix Wave's creativetalent and holdings. CoMix Wave manages more than 50 of Japan's topmanga artists and illustrators, and works to discover and promote newtalent within the industry. The company also manages production --both in Japan and overseas -- of a variety of anime projects,

Disney has already announced plans to capitalize on the success of its 2D animated summer hit LILO & STITCH with a direct-to-video sequel and a television series. Thomas Schumacher, head of Disney Feature Animation, made the announcement. The video sequel, currently entitled STITCH! -- THE MOVIE, is slated for release in 2003 and will serve as a bridge between the feature film and the television series, currently under development with the working title of STITCH! -- THE TV SERIES, and set to launch on Disney Channel in fall 2003. In STITCH!