Canadian-based Corus Entertainment has announced the creation of a new Home Entertainment Division for its production, distribution and consumer products subsidiary, Nelvana Limited, known for its production of popular properties such as Beyblade, Babar, and Franklin.  Nelvana has formed a strategic partnership with the Texas-based Funimation Productions, licensor of Dragonball Z, Detective Conan, and Yu-Yu Hakusho.  Funimation distributes its own licensed titles on home video as well as those of 4Kids Entertainment (Yu-Gi-Oh!).  Under the terms of the new agreement with Nelvana, Funimation will also distribute 44 of Nelvana's titles on home video, including Redwall, Tales of the Crypt Keeper, Pecola and Molville Mysteries.

Funimation will also become a strategic partner on prospective new anime productons as well as a potential co-production partner.  Given the relative strengths of both companies, this agreement has the potential to have a major effect on the development and distribution of anime and children's programming in North America.