Kodak-backed f/x house Cinesite Hollywood (“Red Planet,” “The X-Men”) is expanding into DVD production, launching a new division to be housed inside its Pro-Tek Media Preservation Services Center in Burbank.

The DVD division, headed by Stephen Gustafson and Stephen Alvanos, will provide compression, authoring and menu-graphics services. The duo previously worked on DVD projects at Complete Post, including “The Haunting,” “Antz” and “The Prince of Egypt.” Gustafson serves as executive creative director, while Alvanos is business development exec. Company is currently hiring compressionists and design specialists.

Move, which creates an additional revenue stream for Cinesite, mimics similar moves by post house rivals Laser-Pacific and Liberty Livewire to expand beyond f/x and other digital imaging services such as film mastering, restoration and preservation.

“More and more of the productions that come to Cinesite for digital mastering services are realizing that it’s smart to go ahead and digitize the entire film,” said Cinesite CEO Colin Brown. “Digital mastering creates efficiencies when it comes to the DVD release. Now we can help clients navigate that entire process.”

Cinesite is currently working on f/x for “Ocean’s Eleven,” “Ali” and “Windtalkers.”