THE DVD biography of Philip Pullman and his work is the latest in a series of ambitious projects from Arts Magic.

Last year the company launched its own epic story of The Welsh Miner and before that it compiled the unique worldwidewales website.

Backed by the Welsh Development Agency, Wales Tourist Board and Blaenau Gwent council, worldwidewales became a collection of over 400 short films.

They covered many aspects of Welsh culture, history and tourism and continue to act as a beacon for the country.

Even more impressive was the fact that all the filmmakers were recruited from the ranks of unemployed young people.

Perched on a windswept Rassau mountainside on the roof of South East Wales, the firm's creative output seems a bit incongruous with its location but no one's complaining.

Least of all the company's founder, Gerry Malir, who relocated his company to Rassau in 1994.

He was attracted by the space, the local labour and the possibility of a grant from the WDA.

"The media industry has more bankruptcies than any other I know. The reason I only hired unemployed people is that I didn't want anyone to sacrifice a safe job for one with us."

Although Arts Magic has enjoyed a steady production output, it makes Mr Malir nervous.

"I'm not the biggest fan of making our own stuff because you have long lead times and worries about cash-flow.

"No matter how good you are, if you're not making money you haven't got a business.

"I'm attr-acted to revenue generation because it gives you the time and space to fund interesting projects.

"But where you look to make money in this industry is anybody's guess.

"I asked the chief buyer for HMV for his opinion on what sells and said'If I was sure about that I wouldn't be sitting on this side of the desk'."

Arts Magic is a publisher of specialist Japanese films (usually dramas with elements of tragedy, horror, martial arts, gangsters or science fiction).

It also publishes films for hobbyists on theatres of war, and planes, trains and automobiles.

The company is just finishing two video/DVD documentaries on Victory in Europe day and Victory in Japan day.

Mr Malir said: "The beauty of making things for video/DVD release is that when you've finished you can immediately sell as many as people are prepared to buy.

"The downside is that everyone else knows this and the danger is that many other companies could be making films on the popular subjects."

Slightly away from the mainstream, Arts Magic is now making a DVD about legendary Celtic leader Boudica.

"Mel Gibson is doing a film treatment of the story so interest in the subject will be aroused and we aim to tie-in to that."