UK-based digital film services company Arts Alliance Media (AAM) has announced an investment in Paris-basedLa Banque Audiovisuelle,managers of French video-on-demand (VOD) portal VODEO.TV.

AAM also has the option to acquire thecompany within the next 12 months.

The deal will allow both companies to further their work in VOD, download-to-own and digitalcinema.

The acquisition of La Banque Audiovisuelle would add to AAM's growing reach in Europe, after its acquisition of Swedishonline DVD rental company Boxmanand Denmark's DigitarianA/S and its digital cinema rollout in the UK and Norway.

La Banque Audiovisuelle's portaloffers documentaries and TV programmes throughloading, streaming or DVDon request. It offers more than 2,200 programmescurrently, but the deal with AAM willallow the company to expand into feature film offerings.

"La Banque Audiovisuelle is happy towelcome AAMas a leading investor and strategic partner," La BanqueAudiovisuelle president Frederic Pie said. "We sharethe same vision for the future of film distribution and audio-visual programsand will share our know-how to develop an even broader and more attractiveoffer for our customers."