Japanese media and communications conglomerate Usen Inc has announced the dissolution of its $283m (Y30bn) contents fund only two years into its ten-year lifespan.

Dubbed 'UD No. 1', the fund was launched on January 31, 2006 through 50:50 investment by Usen and Daiwa Securities and their respective group companies.

The fund was established to underwrite visual and music contents, including feature films and other contents streamed through Usen's free online broadband contents service GyaO.

At the point of its dissolution, the fund had only amounted to $56.62m (Y6bn). Management entity Gallop Inc. will be dissolved and funds liquidated by February 29, as agreed on by all parties.

Upcoming films are expected to be funded through the more traditional and risk-averse production consortium model.

Through the fund, Usen group company Gaga Communications' feature film label Gaga Films, established shortly before the fund's creation, produced several in-house productions over the past two years, including Catch A Wave and Cyborg She (slated for summer release).