Anil Ambani's $1.5 billion joint venture with celebrated film maker Steven Spielberg to set up a film studio in Hollywood will be operational in January next year.

Sources in the knowledge said the joint venture, which will be launched by January 2009, will produce 30-35 films over the next five years.

Three-time Oscar award winner Spielberg has produced some of Hollywood's most memorable films like Schindler's List, Jurassic Park and ET.

Spielberg has been reportedly unhappy with Viacom, the US media house which bought his studio DreamWorks for $1.6 billion in 2006.

The mega deal with Ambani now will help Spielberg break away from DreamWorks, which is now owned by Viacom's Paramount Pictures.

Through the deal, Ambani has backed Spielberg's new studio plans with 550 million dollar of equity investment from his company Reliance [Get Quote] Big Entertainment. Another $750 million will be raised in debt. The new Bollywood-backed DreamWorks is set to produce six films a year for the global audience, said sources.

When contacted a group spokesperson did not comment. The deal will also rope in Spielberg's long-standing associate Stacey Snider as CEO of the joint venture. Snider was the chairperson of Universal Studios till 2006.

Anil Ambani-led ADAG, which has a major presence in mobile telecom, financial services and energy sectors, had acquired in 2005 Adlabs Films Ltd [Get Quote], one of India's the largest entertainment companies with interests in film processing, production, exhibition and digital cinema. The group recently acquired 250 screens in US and 51 screens in Malaysia.