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Padmalaya, Mondo TV announce alliance at MIPTV

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MUMBAI: Zee telefilms subsidiary Padmalaya Telefilms signed up a $ 14 million deal with Mondo TV for the co-production and licensing of animation, at the ongoing MIPTV 2004 in Cannes on Monday.

The Zee subsidiary has also committed $ 5 million for the licensing rights of 1,000 cartoon episodes from the Italian animation major's library. As reported by indiantelevision.com last Saturday, Padmalaya will hold the licensing rights for the South Asian region, while the Mondo TV titles will also be utilised for financing new productions.

The two companies have signed three memoranda of understanding (MoUs) for the co-production and commercial exploitation of four new animated TV series and the licensing of 1000 Mondo TV library episodes, it is learnt. The total deal involves co-production of 104 half hour episodes that will cost $ 135,000 each.

Padmalaya has acquired from Mondo TV the commercial exploitation rights of the new series for India, Pakistan, Sri Lanka and other countries in the Indian area and 20 per cent of the exploitation rights for the rest of the world, excluding Italy, which remains Mondo TVs property, at $ 100,000 for each new episode, for a total amount of $ 10.4 million.

According to the deal, Mondo TV will also be the international distributor of the new products. Through the agreement, Padmalaya also receives six years of license of exploitation rights for 1,000 episodes included in Mondo TVs old library, for a total amount of $5 million, which will be paid part by cash and part by Padmalaya equity shares.

Once the official contract is signed, Mondo TV will be able to pay the net amount (equal to the difference between total production costs and the purchase by Padmalaya of part of new series exploitation rights) not by cash but through contribution of part of its old library. According to the terms of the deal, Mondo TV and Padmalaya have to define the definitive contract within 60 days.

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