Spanish Broadcasting System announced the launch of Megafilms, the company's film division. Director and screenwriter Agustin Fernandez III has been tapped as the division's managing director.

Megafilms will produce Spanish-language features, miniseries, telenovelas, documentaries and other forms of filmed entertainment to be distributed nationally and internationally, via theatrical releases, broadcast syndication and DVD commercialization.

"Our entry into filmed entertainment is a natural follow-up to our 2006 debut of MegaTV and our successful efforts in the production of original programming for our network," said SBS president/CEO Raul Alarcon.

"Our foray into broadcast television alerted us to the staggering demand in the global marketplace for cutting-edge, high-quality filmed entertainment which, until now, has been dominated by a handful of foreign suppliers. And, of course, we intend our own Mega TV to be a primary beneficiary of the Megafilms production slate."