Sony Pictures Home Entertainment (SPHE) and Universal Pictures International Entertainment (UPIE) have announced that they will form a joint company which will distribute home entertainment products in Australia.
The companies' existing home entertainment operations will cease trading with the establishing of the new venture, which is expected to commence business in the first quarter of 2012.
The company will manage the marketing, selling, distributing and supplying of Sony and Universal DVD and Blu-Ray releases in Australia.
"The creation of the joint venture between Universal and SPHE is the right step in continuing to ensure that consumers have our titles available when they want them and how they want them in the marketplace," said SPHE's Executive Vice President, Matt Brown, in a statement.
The announcement comes as the home entertainment sector faces increasing pressure as a result of digital piracy.
In a survey released in June by The Project Factory, it was revealed that TV shows and films were the second most popular form of content downloaded illegally after music. Of the 700 participants surveyed, 40 per cent admitted to engaging in piracy.
The new company will be led by Jim Batchelor, currently the Managing Director of Universal Pictures, Australia and New Zealand.