UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                   Form 10-QSB


[X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities and
Exchange Act of 1934 For the quarter ended June 30, 2003

                                       or

[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934 For the transition period from to

Commission File Number:                              001-12885
                        ----------------------------------------------------

                        AVENUE ENTERTAINMENT GROUP, INC.
        (Exact Name of Small Business Issuer as Specified in its Charter)

         Delaware                                       95-4622429
---------------------------                        ----------------------
(State or other jurisdiction of                    (I.R.S. Employer
incorporation or organization                       Identification No.)


11111 Santa Monica Blvd., Suite 525
Los Angeles, California                                    90025
--------------------------------------------       -----------------------
(Address of principal executive offices)                    (Zip Code)

                                 (310) 996-6815
              (Registrant's telephone number, including area code)

Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities and Exchange Act of 1934
during the preceding 12 months (or for such shorter period) that the Registrant
was required to file such reports and (2) has been subject to such filing
requirements for the past 90 days.

     Yes     X                                            No ______
         ---------

Number of shares outstanding of each of issuer's classes of common stock as of
August 14, 2003:



     Common Stock                                         5,371,030



<PAGE>




                        AVENUE ENTERTAINMENT GROUP, INC.

                                Table of Contents


PART I.  FINANCIAL INFORMATION                                         Page No.
                                                                       --------

         Unaudited Consolidated Condensed Balance Sheet -
         June 30, 2003                                                       1

         Unaudited Consolidated Condensed Statements of Operations -
         Three and Six Months Ended June 30, 2003 and 2002                   2

         Unaudited Consolidated Condensed Statements of Cash Flows -
         Six Months Ended June 30, 2003 and 2002                             3

         Unaudited Notes to Consolidated Condensed Financial Statements      5

         Management's Discussion and Analysis or Plan of Operation           8

         Controls and Procedures                                            11

PART II. OTHER INFORMATION

         Signatures                                                         12

         Statement By Principal Executive and Financial Officer Regarding
         Facts and Circumstances Relating to Exchange Act Filings           13

         Written Statement of President and Chief Executive and Financial   15
         Officer


<PAGE>







                          PART I. FINANCIAL INFORMATION

                        AVENUE ENTERTAINMENT GROUP, INC.


                 UNAUDITED Consolidated Condensed Balance Sheet


                                                                      June 30,
                                                                       2003
                                                                   (unaudited)
Assets

Cash                                                           $       69,261
Accounts receivable, net of allowance of $10,000                       43,297
Film costs, net                                                       300,929
Property and equipment, net                                            14,543
Goodwill, net of accumulated amortization of $2,049,200               221,172
Other assets                                                           17,897
                                                                  -----------
Total assets                                                   $      667,099
                                                                   ==========


Liabilities and Stockholders' Deficit

Accounts payable and accrued expenses                          $      503,212
Deferred income                                                       423,369
Loan payable                                                           24,000
Deferred compensation                                                 977,379
Due to related party                                                  146,597
                                                                   ----------
Total liabilities                                                   2,074,557
                                                                    ---------

Stockholders' deficit

Common stock, par value $.01 per share, $15,000,000 shares
        authorized, 5,371,030 shares issued and outstanding            53,710
Additional paid-in capital                                          7,172,839
Accumulated deficit                                                (8,480,320)
Treasury stock, at cost                                                (3,687)
Note receivable for common stock                                     (150,000)
                                                                  ------------
Total stockholders' deficit                                        (1,407,458)
                                                                  ------------
Total liabilities and stockholders' deficit                    $      667,099
                                                                  ===========


   See accompanying notes to the consolidated condensed financial statements.


<PAGE>


                        AVENUE ENTERTAINMENT GROUP, INC.

            UNAUDITED Consolidated CONDENSED StatementS of Operations

<TABLE>

<CAPTION>


                                                            Three months      Three months       Six months        Six months
                                                               ended              ended             ended             ended
                                                              June 30,          June 30,          June 30,          June 30,
                                                              --------          ---------         --------          --------
                                                                2003              2002               2003             2002
                                                               -----              ----              ----             ----
                                                            (unaudited)       (unaudited)        (unaudited)     (unaudited)

<S>                                                       <C>             <C>                     <C>                <C>
Operating revenues                                        $      99,039   $       494,663         $  256,403         1,010,908

Cost and expenses:
  Film production costs                                           39,971            34,146            54,968            57,137
  Selling, general & administrative expenses                     289,947           316,478           599,144           638,883
                                                      -------------------------------------------------------------------------
                                                      -------------------------------------------------------------------------
       Total costs and expenses                                  329,918           350,624           654,112           696,020
                                                      -------------------------------------------------------------------------
                                                      -------------------------------------------------------------------------

Income (loss) before income tax                                (230,879)           144,039         (397,709)           314,888

Income tax expense                                                     0                 0            20,729               460
                                                      -------------------------------------------------------------------------

Net income (loss)                                      $       (230,879)  $        144,039 $       (418,438) $         314,428

Basic income (loss) per common stock                   $            .04                .03               .08               .06

Diluted income (loss) per common stock                 $            .04    $           .03  $            .08     $         .06


Weighted average common shares outstanding-basic              5,371,003          5,371,003         5,371,003         5,371,003

Weighted average common shares outstanding-diluted            5,371,003          5,371,003         5,371,003         5,371,003



</TABLE>



   See accompanying notes to the consolidated condensed financial statements.


<PAGE>







                        AVENUE ENTERTAINMENT GROUP, INC.

            UNAUDITED CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS




<TABLE>

<CAPTION>

                                                                               Six months ended       Six months ended
                                                                                   June 30,               June 30,
                                                                                     2003                  2002
                                                                                  (unaudited)           (unaudited)

Cash flows from operating activities:

<S>                                                                           <C>                 <C>
   Net profit (loss)                                                          $       (418,438)   $        314,428
Adjustments to reconcile net loss to net cash (used for) provided by
    operating activities:
   Depreciation                                                                          4,379               6,993
   Amortization - film production costs                                                 49,349              45,515
   Deferred compensation                                                                59,100              59,720
   Changes in assets and liabilities which affect net income:
       Accounts receivable                                                              11,638             122,887
       Film costs                                                                      (30,084)            (21,282)
       Other assets                                                                       (643)                829
       Accounts payable and accrued expenses                                            (9,480)           (143,222)
       Deferred income                                                                  21,224             102,932
                                                                                  ------------          ----------

           Net cash provided by (used for) operating activities                       (312,955)            488,800


</TABLE>



   See accompanying notes to the consolidated condensed financial statements.


<PAGE>


                        AVENUE ENTERTAINMENT GROUP, INC.

            UNAUDITED Consolidated CONDENSED StatementS of Cash Flows


<TABLE>

<CAPTION>
                                                                               Six months ended       Six months
                                                                                   June 30,             ended
                                                                                       2003            June 30,
                                                                                  -------------
                                                                                 (unaudited)               2002
                                                                                                  ------   ----
                                                                                                      (unaudited)

Cash flows from financing activities:
     Issuance of common stock                                                 $    -               $             -

<S>                                                                                    <C>               <C>
     Proceeds from (repayment of) loan payable                                         24,000            (80,000)
                                                                                       ------            ----------


           Net cash provided by (used for) financing activities                         24,000           (80,000)

           Net increase (decrease) in cash                                            (288,955)          408,800

Cash at beginning of year                                                              358,216            72,729
                                                                                  ------------          -----------

Cash at end of period                                                         $          69,261   $      481,529
                                                                                  =============          ==========

Supplemental cash flow information: Cash paid during the year for:
     Interest                                                                 $             108   $          674
                                                                                  =============           =========
                                                                                            108              460
     Income taxes                                                             $               0    $          460
                                                                                  ===============         =========

</TABLE>






     See accompanying notes to consolidated condensed financial statements.




<PAGE>



                        AVENUE ENTERTAINMENT GROUP, INC.

              Notes to Consolidated CONDENSED financial Statements





1.       Summary of significant accounting policies


The Company

     Avenue  Entertainment Group, Inc. (the "Company") is principally engaged in
the  development,  production  and  distribution  of feature  films,  television
series, movies-for-television, mini-series and film star biographies.



     Generally,  theatrical  films are first  distributed  in the theatrical and
home  video  markets.  Subsequently,  theatrical  films are made  available  for
worldwide   television   network   exhibition  or  pay  television,   television
syndication and cable television. Generally, television films are first licensed
for network  exhibition and foreign  syndication or home video, and subsequently
for  domestic  syndication  on cable  television.  The revenue  cycle  generally
extends 7 to 10 years on film and television product.


Basis of presentation

     The accompanying interim  consolidated  financial statements of the Company
are unaudited  and have been  prepared by the Company  pursuant to the rules and
regulations  of  the  Securities  and  Exchange  Commission   regarding  interim
financial reporting. Accordingly, they do not include all of the information and
footnotes  required by generally  accepted  accounting  principles  for complete
financial  statements  and should be read in conjunction  with the  consolidated
financial statements and notes thereto included in the Company's Form 10-KSB for
the year ended December 31, 2002. The Independent  Auditor's  Report dated March
7, 2003 on the  Company's  consolidated  financial  statements  states  that the
Company has suffered losses from  operations,  has a working capital  deficiency
and has an accumulated  deficit that raises  substantial doubt about its ability
to continue as a going concern.  The  accompanying  financial  statements do not
include any adjustments that may result from the Company's inability to continue
as a going concern.  In the opinion of management,  all adjustments,  consisting
only of normal recurring adjustments,  necessary to present fairly the financial
position of the Company at June 30, 2003,  and the results of its operations and
its cash  flows  for the six  months  ended  June 30,  2003 and 2002  have  been
included.  The results of operations for the interim period are not  necessarily
indicative of results which may be realized for the full year.


<PAGE>

                        AVENUE ENTERTAINMENT GROUP, INC.

Notes to Consolidated CONDENSED Financial Statements (Continued)



Earnings (Loss) per Common Share

           The Company has adopted Statement of Financial Accounting Standards
(SFAS) No. 128, "Earnings per Share", which established standards for computing
and presenting earnings per share (EPS). The statement simplifies the standards
for computing EPS, replaces the presentation of primary EPS with a presentation
of basic EPS and requires a dual presentation of basic and diluted EPS on the
face of the income statement. Basic EPS are based upon the weighted average
number of common shares outstanding during the period. Diluted EPS are based
upon the weighted average number of common shares if all dilutive potential
common shares had been outstanding.

           The following potential common shares have been excluded from the
computation of diluted net income (loss) per share for the six months ended June
30, 2003 because the effect would have been anti-dilutive:
                                                                      June 30,
                                                                       2003
Options outstanding under the Company's stock option plan           2,235,000
Warrant issued in conjunction with a private placement                500,000


2.      Film costs

         Film costs consist of the following:

                                                                      June 30,
                                                                        2003

      In process or development                                   $   165,745
      Released, net of accumulated amortization of $17,058,157        135,184
                                                                   ----------
                                                                  $   300,929


3.     Property and Equipment

       The major classes of property and equipment consist of the following:

                                           Useful                   June 30,
                                           life                      2003
       Machinery and equipment           4 to 5 years            $ 232,599
       Furniture and fixtures            10 years                   29,495
       Leasehold improvements            3 to 4 years                3,267
                                                                -----------
                                                                   265,361
       Less accumulated depreciation                              (250,818)
                                                                  ----------
                                                                 $  14,543
<PAGE>

       Depreciation expense was $4,379 and $6,993 for the six months ended June
30, 2003 and 2002, respectively.

4.      Earnings (Loss) Per Share

         Earnings per share for the six months ended June 30, 2003 were as
follows:

         Basic
             Weighted-average of common shares outstanding            5,371,003
             Net loss                                                 $(418,438)
             Net loss per share                                       $   (0.08)

         Diluted
             Weighted-average of common shares outstanding            5,371,003
             Incremental shares assuming dilution                            0
                                                                      ----------

             Weighted-average diluted common shares outstanding       5,371,003
                                                                      =========

             Net loss                                                 $(418,438)
             Net loss per share                                       $   (0.08)

5.      Loan Payable

            On April 15, 2003 the Company entered into an unsecured loan for
           $250,000 at prime plus 1% with City National Bank. As of June 30,
           2003, $24,000 had been borrowed under the loan. Subsequently, as of
           August 14, 2003 an additional amount of $60,000 has been borrowed for
           a total amount of $84,000.

<PAGE>



Item 2.  Management's Discussion and Analysis or Plan oF  Operation.

         The following discussion and analysis should be read in conjunction
with the Company's consolidated condensed financial statements and related notes
thereto.

Critical Accounting Policies
         Our discussion and analysis of our financial condition and results of
operations are based upon our consolidated financial statements, which have been
prepared in accordance with generally accepted accounting principles in the
United States. The preparation of financial statements require management to
make estimates and judgments that affect the reported amounts of assets and
liabilities, revenues and expense and disclosures at the date of the financial
statements. On an on-going basis, we evaluate our estimates, including, but not
limited to, those related to revenue recognition, accounts receivables,
inventories and impairment of intangibles. We use authoritative pronouncements,
historical experience and other assumptions as the basis for making estimates.
Actual results could differ from those estimates. We believe that the following
critical accounting policies affect our more significant judgments and estimates
in the preparation of our consolidated financial statements.

     Revenue Recognition.  The Company recognizes revenue in accordance with the
provisions of Statement of Financial  Accounting  Standards No. 139 and American
Institute  of  Certified   Public   Accountants   Statement  of  Position   00-2
(collectively referred to as "SOP 00-2").

         Revenues from feature film distribution licensing agreements are
recognized on the date the completed film is delivered or becomes available for
delivery, is available for exploitation in the relevant media window purchased
by that customer or licensee and certain other conditions of sale have been met
pursuant to criteria set by SOP 00-2.

         Revenues from domestic television and video licensing contracts, which
provide for the receipt of non-refundable guaranteed amounts, are recognized
when the film is available for exhibition, provided that the other conditions of
sale required by SOP 00-2 have been met. Until all conditions of sale have been
met, amounts received on such licensing contracts are reflected in the
accompanying financial statements as deferred income. International sales and
other sales in the United States are recognized in the period in which payment
is received.

         The market trend of each film is regularly examined to determine the
estimated future revenues and corresponding lives. Due to the nature of the
industry, management's estimates of future revenues may change within the next
year and the change could be material.

         Revenues from producer-for-hire contracts are recognized on a
percentage-of-completion method, measured by the percentage of costs completed
to date to estimated total cost for each contract. Provisions for estimated
losses on uncompleted contracts are made in the period in which such losses are
determined.


<PAGE>

     Film  Costs.  The  Company  capitalizes  costs  incurred  to produce a film
project,  including the interest expense funded under the production loans. Such
costs  also  include  the  actual  direct  costs of  production  and  production
overhead.  These costs are amortized  each period on an individual  film program
basis in the ratio that the current period's gross revenues from all sources for
the program bear to  management's  estimate of anticipated  total gross revenues
for such film or  program  from all  sources.  Revenue  estimates  are  reviewed
periodically  and adjusted where  appropriate and the impact of such adjustments
could be material.

     Film  property  costs  are  stated  at the  lower  of  unamortized  cost or
estimated net realizable value. Losses which may arise because unamortized costs
of  individual  films  exceed  anticipated  revenues  are charged to  operations
through additional amortization.

     Advertising  costs for theatrical  and  television  product are expensed as
incurred.  Revenue  associated  with the home video  market is  recognized  upon
availability to customers (street date).

Liquidity and Capital Resources

     At June 30, 2003, the Company had approximately  $69,000 of cash.  Revenues
were  insufficient  to cover costs of operations  for the quarter ended June 30,
2003.  The  Company  has a working  capital  deficiency  and has an  accumulated
deficit of $8,480,320  through June 30, 2003.  The Company's  continuation  as a
going  concern is  dependent  on its  ability to  ultimately  attain  profitable
operations  and positive cash flows from  operations.  The Company's  management
believes that it can satisfy its working capital needs based on its estimates of
revenues and expenses,  together with improved  operating cash flows, as well as
additional  funding  whether  from  financial  markets,  other  sources or other
collaborative  arrangements.  The Company believes it will have sufficient funds
available to continue to exist through the next year,  although no assurance can
be given in this  regard.  Insufficient  funds will require the Company to scale
back its operations. The Independent Auditor's Report dated March 7, 2003 on the
Company's consolidated financial statements states that the Company has suffered
losses from operations,  has a working capital deficiency and has an accumulated
deficit that raises  substantial  doubt about its ability to continue as a going
concern.  The accompanying  financial  statements do not include any adjustments
that may result from the Company's  inability to continue as a going concern. On
April 15, 2003 the Company  entered into an unsecured loan for $250,000 at prime
plus 1% with  City  National  Bank.  As of August  14,  2003,  $84,000  has been
borrowed under the loan.

The three and six months ended June 30, 2003 as compared to the three and six
months ended June 30, 2002.

Revenues

         Revenues for the three months ended June 30, 2003 were approximately
$99,000 compared to $495,000 for the three months ended June 30, 2002. Revenues
earned in 2003 were derived primarily from producer fees for the HBO First Look

<PAGE>

Deal. The revenues earned in 2002 were derived primarily from producing fees for
the HBO projects "Angels in America", "Normal" and "Path to War."

         Revenues for the six months ended June 30, 2003 were approximately
$256,000 compared to $1,011,000 for the six months ended June 30, 2002. Revenues
earned in 2003 were derived primarily from producer fees for the HBO First Look
Deal and "Mindhunters" and for consulting fees. The revenues earned in 2002 were
derived primarily from producing fees for the HBO projects "Angels in America",
"Normal" and "Path to War."

Film Production Costs

         Film production costs for the quarter and six months ended June 30,
2003 were $40,000 and $55,000 compared to $34,000 and $57,000 for the quarter
and six months ended June 30, 2002.

Selling, General and Administrative

         Selling, general and administrative (S,G&A) expenses for the quarter
and six months ended June 30, 2003 were $290,000 and $599,000 compared to
$316,000 and $639,000 for the quarter and six months ended June 30, 2002.

Recent Developments

         The shares of the Company's Common Stock are currently listed on the
OTC Bulletin Board ("OTCBB"). Due to the continued decline in the share price of
the Company's Common Stock and continued operating losses, the Company received
a letter from AMEX dated February 2001, stating that they had failed to meet the
criteria of AMEX's continued listing guidelines. The exchange noted that the
Company's operating results had been unsatisfactory and its financial condition
had been impaired, that they have had losses in two of its three most recent
fiscal years and losses in three of its four most recent fiscal years. In
addition, the exchange noted that the Company's public float is below the
exchange's minimum requirements, that they have not complied with the annual
shareholders' meeting requirements and have not paid the exchange's listing
fees. As a result, the Company's failure to meet AMEX's maintenance criteria
resulted in the discontinuance of the inclusion of its shares in the AMEX in
April 2001.

Recent Accounting Pronouncements

         In April 2003, the FASB issued SFAS No. 149, "Amendment of Statement
133 on Derivative Instruments and Hedging Activities," an amendment of SFAS No.
133. SFAS No. 149 amends and clarifies financial accounting and reporting for
derivative instruments, including certain derivative instruments embedded in
other contracts (collectively referred to as derivatives) and for hedging
activities under FASB Statement No. 133, Accounting for Derivative Instruments
and Hedging Activities. In particular, this Statement (1) clarifies under what

<PAGE>

circumstances a contract with an initial net investment meets the characteristic
of a derivative discussed in paragraph 6(b) of Statement 133, (2) clarifies when
a derivative contains a financing component, (3) amends the definition of an
underlying to conform it to language used in FASB Interpretation No. 45,
Guarantor's Accounting and Disclosure Requirements for Guarantees, Including
Indirect Guarantees of Indebtedness of Others, and (4) amends certain other
existing pronouncements.. SFAS No. 149 will not have any impact on the Company's
financial statements.

         In May 2003, the FASB issued SFAS No. 150, "Accounting for Certain
Financial Instruments with Characteristics of both Liabilities and Equity." SFAS
No. 150 establishes standards for how an issuer classifies and measures in its
statement of financial position certain financial instruments with
characteristics of both liabilities and equity. In accordance with the standard,
financial instruments that embody obligations for the issuer are required to be
classified as liabilities. SFAS No. 150 will be effective for financial
instruments entered into or modified after May 31, 2003 and otherwise will be
effective at the beginning of the first interim period beginning after June 15,
2003.

Forward-Looking Statements

         This report contains certain forward-looking statements reflecting
management's current views with respect to future events and financial
performance. These forward-looking statements are subject to certain risks and
uncertainties that could cause actual results to differ materially from those in
the forward-looking statements, including, but not limited to, the ability of
the Company to reverse its history of operating losses; the ability to obtain
additional financing and improved cash flow in order to meet its obligations and
continue to exist as a going concern; production risks; dependence on contracts
with certain customers; future foreign distribution arrangements; and dependence
on certain key management personnel. All of these above factors are difficult to
predict, and many are beyond the control of the Company.

ITEM 3.  CONTROLS AND PROCEDURES

          Based on the evaluation conducted by the Chief Executive Officer and
Chief Financial Officer, as of a date within 90 days of the filing date of this
quarterly report, of the effectiveness of the Company's disclosure controls and
procedures, the CEO and CFO concluded that, as of the evaluation date (1) there
were no significant deficiencies or material weaknesses in the Company's
disclosure controls and procedures, (2) there were no significant changes in
internal controls or in other factors that could significantly affect internal
controls subsequent to the evaluation date, and (3) no corrective actions were
required to be taken.


<PAGE>


                        AVENUE ENTERTAINMENT GROUP, INC.

                                  June 30, 2003

                           PART II. OTHER INFORMATION

Item 6.           Exhibits and Reports on Form 8-K

                  (a)      Exhibits

                   31. Certification of Chief Executive and Financial
                       Officer Pursuant to Section 302 of the Sarbanes-Oxley Act
                       of 2003.

                   32. Written Statement of the President and Chief Executive
                       and Financial Officer pursuant to 18 U.S.C.ss.1350.

                  (b)      Reports

                           No reports were filed under Form 8-K for the quarter
ended June 30, 2003.

                                   SIGNATURES

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

                        AVENUE ENTERTAINMENT GROUP, INC.


DATE: August 14, 2003           BY: ________________________
                                    Gene Feldman
                                     Chairman of the Board



DATE: August 14, 2003           BY: ________________________
                                    Cary Brokaw
                                    President and Chief Executive and Financial
                                    Officer, Director


<PAGE>