It is one of the biggest animation deals to be struck with an Indian studio. Hyderabad based DQ Entertainment Ltd and leading French studio Onyx Films have announced the formation of a joint venture to produce high-end CGI feature films. Simultaneously, DQE also revealed that it will be acquiring a strategic stake of up to 20% in French TV company, Method Films, which is a sister concern of Onyx.
Says DQE CEO Tappas Chakravarti: “We are thrilled to announce our joint venture with the leading French animation giant Onyx films. The joint venture also clearly endorses the fact that we are at par with the best in the business in terms of quality, capabilities to execute larger multiple projects within the stipulated time frame, state of the art facility and strong talent pool.”
Under the agreement, DQE will hold 51% of the JV and Onyx Films the remaining 49%. DQ will invest around 1.5 Million Euros in the joint venture at the initial stage.
The proposed JV will produce three feature films valued at a total of $89.5 million and aims to release one each year starting 2008. The movies in the pipeline include Skyland with a budget of $31.5 million, Night of the Child King with a budget of $30 million and The Enchanted Boy with a budget of $28million. All three are already under development.
The JV will help DQE leapfrog into an elite club of animated feature film producers along with a guaranteed utilization of production facilities and additional revenue streams. A sign that it is indeed leaping into the big league is the appointment of BBC’s Theresa Plummer onto the JV’s board.
Says Onyx Films Chairman and Method Films CEO Aton Soumach: “This is a logical process in reinforcing our relationship and for our group to have a unique access to one of the best animation studios in the world. I also believe that this will become one of the strongest partnerships in animation globally.”
Chakravarti is excited about DQE’s strategic investment in Method Films. Says he: “This will help us access global revenue streams and overseas funds for entire production along with Method Films.”
The stake is not coming cheap: it is going to cost Chakravarti up to 2 to 2.5 million Euros. But it will provide DQE a huge order pipeline in the area of animation, VFX and post production work in the years to come. Method is assigning DQE nine TV series, six of which are currently under production. All the work will be produced at DQE. The series given to DQE include: Skyland (26×22), Jet Grooves (26X23), Tenshi (26X23), Mikkido (52 x 11), Iron man (26×23), Skyland Season 2 which will interestingly cost 7.26 Million Euros while the first season cost around 10.5 million euros and Pinky & Perky.
Says Soumach: “We have worked together for four years. These strategic alliances are extremely important and will bring about a strong presence of creativity, powered by production capabilities. Personally our partnership with DQE and our working relationship with India generates tremendous synergy and energy which, I think symbolises my partner, Tappas CEO of DQE.”
DQE has also announced plans to have a massive expansion in the 3D console game asset division as well as 3D and mobile game testing. From a current order book position of $5million in the gaming space, the company expects this to grow to $ 16million in the next year and a half.