Cinecitta Studios has merged three existing post structures under the umbrella name Cinecitta Digital Factory and distributor Medusa has taken a minority share in the project.

The post facilities being merged and rebranded are Cinecitta Digital, Cinecitta development lab and Cinecitta's sound unit.

Giuseppe Basso, Managing Director of Cinecitta Digital Factory said the merging of the post units is to 'focus on post-production and open the way for a digital solution in Italy.'

According to Bass, Cinecitta Digital did post work on forty percent of locally produced product in 2008, of which ninety-five percent was in digital. The Factory uses the Digital Intermediate (DI) process.

Meanwhile Italian distribution company Medusa Film has taken a fifteen percent share in the newly formed Cinecitta Digital Factory.

Basso highlighted the importance of having a distribution leader such as Medusa involved in the project, citing it as a means to 'better monitor the (digital) market today and its future developments.'

Cinecitta Studios controls the remaining interest in the 'factory'.

The Studios itself is owned by a private consortium including shoe manufacturer Diego Delle Valle, president of Cinecitta Studios Luigi Abete, Film Producer Aurelio De Laurentiis and producer Robert Haggiag (who passed away March 1).

The deal between Cinecitta Digital Factory and Medusa comes as Cinecitta Studios itself is undergoing changes.

Last year, the Italian government said it would sell its 25% share in the studio. While no offers have been made, it is widely expected that the private consortium will absorb the government's stake.