EXCLUSIVE: Ahead of the American Film Market, international buyers from 12 territories have teamed up to form a new distribution network called Lokia.
The 12 distribution partners comprise Wild Bunch Germany GmbH / Wild Bunch Austria (Germany and Austria); Praesens-Film (Switzerland); PRIS Audiovisuals SA (Portugal); Feelgood Entertainment (Greece); Kazoo Films (UK/Ireland); Noori Pictures (South Korea/ Thailand/Vietnam); Filmhouse (Israel); Blitz Group (Former Yugoslavia); Donart Film (Czech Republic); Mars Production (Turkey); and Horizon Distribution (Global Airlines and Shipping).
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Incorporated in Luxemboug, the Lokia partners will look to develop and produce content together, pool market intelligence, capitalise on licensing and merchandising opportunities and will soon look to acquire content together. The number of companies in the network could grow in coming months.
The move is a direct response to consolidation in the market and the challenge posed by the declining international pre-sales model. The companies will continue to acquire content individually for their separate markets and exist as standalone financial entities but the aim is to have larger stakes in IP and to be able to monetise and acquire more aggressively. Multiple projects are in development on the Lokia slate but aren’t ready to be revealed yet. The group isn’t expected to be acquiring as one entity at the AFM but that’s the plan a little further down the road.
The Lokia network is the brainchild of Michael Favelle of Australia-based sales agency Odin’s Eye Entertainment and Odin’s Eye Animation, and was co-founded and built with Heiko Nemmert, formerly of German outfit Baby Giant. In addition to the challenge of the pre-sales market, the founders say the network was formed to “provide a solution to the puzzle of IP-derived consumer products for independent animated features.”
Favelle explained: “Essentially, without worldwide theatrical guarantees before financing and additional finance to also cover IP extension, licensing campaigns are not realistic. But if there is a system where we co-ordinate both theatrical and licensing partners, offer them investment opportunities in the IP for hedging across territories and rights categories, amongst other synergies we can build a scalable repeatable pipeline, not only for animation but equally for live action.”
“I knew we had something that might work when the first distributor I pitched the concept to asked if they could invest,” he continued.
Founding partner Yong Ho Lee of South Korean buyer Noori Pictures noted: “It’s no secret that the Korean market has not bounced back after the pandemic. The Lokia partnership gives us greater opportunity to expand our business outside of our traditional home territory. The reality is that we are competing against global giants, and while it’s somewhat of a cliché, together we can be stronger.”
Co-founder Nemmert supervised the build of Lokia’s operating system (Lokia OS) and runs the company’s operations and production side.
Lokia OS is live and onboarding of distribution and licensing partners is under way. According to the founders, the platform puts the network in one working environment: partners submit projects, distributors return revenue forecasts, and financing and licensing partners see the aggregated picture before capital is committed. “Assets, market intelligence and transparent reporting all run through the same system,” they commented.
Nemmert expanded: “Partners are responding to three things: they see projects early, their forecasts and input carry real weight in how a film is financed and produced, and they get a view across the whole network instead of working in isolation. Our system makes that coordination routine. And for our production partners, market validation and transparent feedback add clear value.”
Former Marvel executive Russell Brown, Lokia’s Chief Capital and Monetisation Officer, is leading discussions with independent licensing agencies for each territory and is in talks with potential global category partners in toys, video games and publishing. The announcement of licensing partners is anticipated later in Q4, 2026.
“The licensing and merchandising industry has never had the opportunity to participate in quality independent IP productions in such an orchestrated fashion, which is why we are seeing such a positive response from the major agents we are signing,” said Brown.
Andrew Baker, CEO of Kazoo Films added: “Lokia is an innovative new company, giving distributors early access to projects, enabling us to assess and advise on the development of films, giving them the best commercial advantage. We are thrilled to be the partner for the UK & Ireland and look forward to working closely with Lokia and the other distributors to collectively bring market intelligence to early stage animated movies.”
Lokia, which will be exhibiting at the American Film Market at Fairmont Suite 411, has also formed a strategic partnership with Fintage House to oversee reporting and manage collection accounts. Fintage House Co-Chairman Robbert Aarts will join Lokia’s board.
It’s not the first grouping of international companies we’ve seen in recent years in response to shifts in the film distribution landscape. The Vuelta distribution group was formed in 2023, in 2024 a group of foreign distributors teamed up to help finance films produced by MadRiver, and producers alliance The Creatives has emerged since then.
Lokia’s three principals comprise: Michael Favelle, Chief Creative Officer and President of Distribution who founded Sydney-based production, sales and distribution company Odin’s Eye Entertainment in 2006; Heiko Nemmert, Chief Operating Officer and President of Production, who was previously managing director of Berlin-based Baby Giant; and Russell Brown, Chief Capital and Monetisation Officer, who served as Executive Vice President of Worldwide Licensing, Promotions and Ad Sales at Marvel Enterprises and, from 2012, as President of Consumer Products, Promotions and Ad Sales at Valiant Entertainment.
