DreamWorks has signed an exclusive agreement with Milan-based Polyvideo to sell its home video and DVD titles on-line, according to Italian press reports.

The deal is expected to be the first in a series of alliances that DreamWorks plans to establish in Europe to sell its product on-line. In the US, the studio already has an on-line sales agreement with Amazon.com.

"In order to manage a relationship with the major [operators] on a continental scale, DreamWorks has opened an office in London," said Dario Piazzi, DreamWorks' manager of southern European affairs.

The titles will be sold on www.dvd.It, a site that Polyvideo owner Larry Mannino acquired and relaunched several months ago and which already has more than 16,000 titles in its catalogue.

"We will not only offer videocassette titles from DreamWorks, but will also have a privileged relationship with them to conduct marketing initiatives when they issue their first DVD films here," Mannino said.

Universal Video, the home entertainment arm affiliated to DreamWork's international distribution partner UIP, declined to comment on the deal.