The two companies intend to tap the potential in core competency areas in entertainment-related software for television and the Internet audience. These will include animation films for the small screen and personal screen in these two specific segments, according to a press release from Pentamedia Graphics.

It will be a 50:50 joint venture with the investment potential being reckoned initially as $10 million. Modi Entertainment Network will lead the marketing initiatives in the US, Europe and other countries.

MEN is one of the leading conglomerates which is heavily into entertainment business involved in production, distribution and marketing of various software and entertainment products for television channels. Besides distribution to television channels and marketing advertising airtime, the company has strategic tie-ups with majors like Walt Disney, ESPN, Hallmark Entertainment and Henson.

According to vice-chairman of MEN Lalit K. Modi, the market for animation is expected to be over $40 billion in the next four years posting a consistent 20 per cent growth. "The East is looking towards emerging markets like India for creativity with effective cost and turn-around time. With this joint venture we are confident of achieving the best of entertainment to be produced and with Pentamedia expertise, the market is ours," he claimed.

Chairman and CEO of Pentamedia Graphics V. Chandrasekaran said television in India currently reaching 68 million households is expected to reach 85 million households by end of year 2000 and cable television in India has 29 million viewers and is expected to go up to 46 million by the end of the year.

Quoting Arthur Anderson he said Indian television software industry revenues will grow from $443 million in 1999 to $ 963 million by year 2000.