Nelvana is expected this month to announce the launch of a new media division which will handle the development of proprietary products based on the company’s slate of animated programming.

Sources tell Playback the new division will be launched as part of an agreement with a major multimedia content developer, one of the ‘world leaders in the manufacture and distribution of cd-roms.’

The new media division will develop character-based products ranging from games to cd-roms to Web-based content. The division will also be responsible for revamping Nelvana’s website.

The new media division is part of a long-term strategy announced last May during Nelvana’s annual shareholders’ meeting. At the time, ceo Michael Hirsh said the company would expand its merchandising and e-commerce businesses, and its presence on the Internet.