UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                    FORM 8-K

                                 CURRENT REPORT
                     PURSUANT TO SECTION 13 OR 15(d) OF THE
                        SECURITIES EXCHANGE ACT OF 1934


Date of Report (Date of earliest event reported)       December 30, 2002
                                                 -------------------------------


                                   POINT.360
- --------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)


                                   California
- --------------------------------------------------------------------------------
                 (State or other jurisdiction of incorporation)


         0-21917                                  95-4272619
- -------------------------------   ----------------------------------------------
   (Commission File Number)           (IRS Employer Identification No.)


  7083 Hollywood Boulevard, Suite 200, Hollywood, CA       90028
- --------------------------------------------------------------------------------
   (Address of principal executive offices)              (Zip Code)


                                 (323) 957-7990
- --------------------------------------------------------------------------------
              (Registrant's telephone number, including area code)


          ----------------------------------------------------------
         (Former name or former address, if changed since last report)





Item 5. OTHER EVENTS.

        On January 8, 2003,  Point.360  (the  "Company")  issued a press release
stating  that  it  extended  its  option  to  purchase  three  post   production
subsidiaries of Alliance Atlantis  Communications Inc. from December 31, 2002 to
March 21, 2003 (see Exhibit 99).

Item 7. FINANCIAL STATEMENTS AND EXHIBITS.

   10.1 Amended and Restated  Option  Agreement  dated December 30, 2002 between
        the Company and Alliance Atlantis Communications Inc.

   99   Press release dated January 8, 2003.


                                   SIGNATURES

        Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned hereunto duly authorized.

                                                    Point.360
                                        ----------------------------------
                                                  (Registrant)



        Date: January 8, 2003       By: /s/ Alan R. Steel
                                        ----------------------------------
                                            Alan R. Steel
                                            Executive Vice President,
                                            Finance and Administration,
                                            Chief Financial Officer







                                       2