 The studio was founded by film director Richard Rich in 1986, who previously worked at Walt Disney Productions.In 1987, the studio was owned by Nest Family Entertainment to produce and distribute educational animated Christian and historical videos for children such as Animated Stories from the New Testament, Animated Hero Classics and Animated Stories from the Bible.In 1994, the two studios produced and released their first and most famous collaborated feature film called "The Swan Princess", based on the classic ballet Swan Lake, it was distributed for New Line Cinema.