An initiative aimed at promoting the strategic development of Irish film companies by way of investment packages of up to £500,000 (€634,870) has been announced by Enterprise Ireland.

The pilot scheme is intended to support the emergence of "key players" through the recruitment of core business expertise, to enable film companies to capitalise on opportunities in the international market.

No cap has been put on the amount to be paid out under the initiative, though it is believed there are not many more than five or six existing companies that could qualify.

With significant increases in demand for material expected with the advent of digital TV, one of the key issues for the film sector is creating companies capable of keeping ownership of their product and thereby ensuring they have revenue streams into the future. It is hoped that the pilot initiative will meet the need for stronger indigenous companies, as outlined in the report by the Film Industry Strategic Review Group.

"Eligible companies must be of a significant scale and have the potential to deliver management competencies in such areas as business management, strategic development, finance and marketing management," according to a statement from Enterprise Ireland.

The level of investment support will depend on the value for money provided by the various projects and on the incremental value-added activities they involve. Regionally based companies are to be given special consideration.