MUMBAI: A first time movie deal has been announced between NewsCorp owned Star TV and Indian's major production house United Television Limited . The duo plan to co-produce 12 feature films as part of a co-production initiative. The movies - commercial, regional and international co-productions will be distributed by 20th Century Fox. While Star is expected to pick up the satellite rights, UTV will hold the "world theatrical " or movie hall rights. The move has been prompted by the estimated over 5 billion Indians abroad. UTV has distributed a range of Hindi films including Sarfarosh, Bade Miyan Chote Miyan, Terrorist, Vastav and an Indo-English movie Hyderabad Blues in the past few years.

Meanwhile, Star is believed to be in advanced stages to start work on its US$ 1 studio on the outskirts of Mumbai to produce films and TV product. Earlier this year, NewsCorp Chairman Rupert Murdoch had pledged to launch a studio in Mumbai.