Rupert Murdoch's Star TV has a 38-country footprint

Heading the new company will be two former Media Asia executives, deputy general manager Peter Poon and production head group Michael Mak.

"We are expected to recoup our costs from distribution," Mr Poon is quoted as saying.

Fortune Pictures is reported as aiming to copy the South East Asia distribution network that Mr Poon built at his previous company.

Projects

Releases will be supported by Star TV, which has a 38-country satellite footprint in the region - but will have an arm's length relationship with the new company.

Murdoch's News Corp also owns the Fox network

The company has a number of film projects in development and is planning to put the first ones into production by the end of 2002, the report adds.

It is said to want to produce four to five local pictures a year at first, with budgets of about $1.5m (�1m) per picture and a couple of larger movies as co-productions, for an international audience.

The company already has relationships with Raintree Pictures in Singapore and is developing links in China, allowing its film projects to be considered as local productions.

Fortune Pictures will also produce TV programmes including documentaries and library material.