Former Nine Entertainment boss Hugh Marks is planning to challenge some of Australia’s leading production companies as he searches for investors to help him create a local film and television studio.

Industry sources familiar with the plans, who spoke anonymously because the project is in its early stages, said Mr Marks was working with former Endemol Shine Australia boss Carl Fennessy. The pair are looking for a third strategic investor to establish the business by next year.

Mr Marks declined to comment.

The creation of the studio would be the first major move by Mr Marks since his exit from Nine, the owner of this masthead, earlier this year. Mr Marks resigned from the television, radio, publishing, streaming and real-estate company one year ago after he went public about his relationship with former direct report and NRL chief commercial officer Alexi Baker.

Media sources familiar with his non-compete agreement said he is prevented from running a television company and online classifieds businesses. However, he is not prevented from running a film and television studio.

People familiar with the plans said Mr Marks and Mr Fennessy were trying to create a studio that would not only produce content, but sell it to international markets in the same way that Hollywood powerhouses such as Disney operate. The pair would provide the infrastructure for production partners as well as the capability to sell formats to local and international markets.

The creation of a studio comes at a time when international companies such as Disney and ViacomCBS are taking back content and running direct-to-consumer streaming services. This move has put the local television and streaming market under pressure, as they were previously reliant on large output deals with Hollywood studios to deliver engaging content to viewers.

However, the plans are in the early stages and there is no guarantee it will go ahead unless Mr Marks and Mr Fennessy can secure a third local or international partner.