Disney Forms 3rd Film Division

In an effort to capitalize on a string of box office successes, the Walt Disney Co. today announced formation of a third movie production arm called Hollywood Studios.

Disney, at present the nation’s top producer of movies through its Touchstone Films and Disney Films divisions, said the new company will start up Feb. 1. Within three years, it is to be making 12 movies a year, the company said. Hollywood Films will make movies similar to those from Touchstone, which produces mainline fare considerably racier than Disney’s traditional animated features and comedies for children.