Havas'

(HAVS)

Arnold Worldwide, one of the French ad holding company's two key network agencies, is the latest player to step into the branded entertainment field to help combat the increased use of ad-skipping devices available to TV viewers.

Today the agency will announce the creation of Arnold Entertainment to develop entertainment content across various media platforms on behalf of clients including

Volkswagen

,

Fidelity

and

Royal Caribbean

(RCL) - Get Report

.

With the move, Arnold joins rival ad holding companies looking for ways to cope with the increasing use of devices like TiVo

(TIVO) - Get Report

. Consulting and tech firm Accenture said last week that increased use of digital video recorders is expected to cost the TV industry billions in lost ad revenue as some 40% of U.S. homes will have the capacity to skip advertising by the end of the decade.

The division will be run out of Los Angeles by Hollywood film producer Teddy Lynn and Lee Einhorn, who joins Arnold from Publicis & Hal Riney in San Francisco. The group will be managed by Arnold's Pete Favat, managing partner and executive creative director and will report into chairman Ron Lawner.

Recently, the agency has produced a short film developed for the launch of Volkswagen's Jetta that premiered at the Sundance Film festival, and American Legacy's "truth" campaign made available as a five-minute programming block on

Comcast

(CMCSA) - Get Report

-owned G4 gaming network and recordable by TiVo.

"Arnold Entertainment is a natural progression of the integrated work we've been doing for clients as the media landscape continues to shift toward more and more non-traditional outlets," Lawner said in a statement.