DQ Entertainment plc, the AIM listed global entertainment production and distribution company is pleased to announce that its 75% owned Indian subsidiary, DQ Entertainment (International) Limited ("DQEI"), has signed a licensing and distribution deal with SMC Entertainment Inc. ("SMC"), a division of Sun-Mate Corporation Inc., USA for "The Jungle Book" Season One.
Under the agreement SMC has the television, home video and licensing and merchandising rights for the 52 x 11' 3D animated TV series The Jungle Book for an initial 5 year term in North America.
SMC has projected that it will earn approximately $50M from licensing, merchandising, TV and home-video sales during this term, out of which DQE will be eligible to receive the agreed royalty income as well as a multi-million dollar minimum guarantee and licensing fee. SMC intends to maximise the sales of Jungle Book through different verticals complementing its strong manufacturing and retail reach. The group believes the property has tremendous merchandising potential in the US and Canadaand characters like Mowgli, Shere khan and Baloo will be a success with the kids in North America.
Tapaas Chakravarti, Chairman & CEO of DQE Group commented "Since USA is the largest consumer of animation content and merchandising in the world, this deal with SMC Entertainment, a division of Sun-Mate Corporation, for the American and Canadian markets is a real game changer for our coveted and flagship brand The Jungle Book. We are very hopeful that our agreement with SMC will exploit the full potential of the Jungle Book for licensing and merchandising in North America with meticulous brand building resulting in projected financial results for such an iconic brand.
Mr. Rami Ben-Moshe, President Sun-Mate Corp said "The quality and execution of DQE's The Jungle Book is brilliant. We are grateful to have the opportunity to partner with a company that has such vision and talent. We believe that The Jungle Book will far exceed all our expectations."
Ms Lisa Streff, SVP Licensing said "We are honored to be granted all North American rights for Television, Home Entertainment, Licensing and Merchandising on this classic property that has such rich heritage and appeal to parents and children around the world. DQE's execution of this 3D animated TV series is charming, lively and beautifully designed. We are enthusiastic and in the process of securing the best in class partners for the animated series and merchandising program in North America. We are thrilled to launch this brand to a new generation of children that will experience the magic of The Jungle Book in this new form of action and adventure. It has all the makings of a tremendously successful entertainment and consumer products program."