Endemol Mobile will be headed by Morgan Holt, who will report to Endemol UK's director of digital media Peter Cowley.
The Extreme Reality Channel will be the first channel to launch, featuring various "weird" video clips from the world of entertainment. It will be followed with a comedy channel made up of funny short clips.
The new channels will launch through unannounced partnerships with mobile phone operators.
Content will be drawn from Endemol's international library and reversioned for mobile. Both channels will broadcast on a loop and be updated weekly.
The new division also plans to produce original made for mobile content, including a new video game giving players the chance to win instant cash prizes.
Speaking at the Mipcom marketplace in Cannes, Endemol's chief creative officer Peter Bazalgette denied the indie was becoming a broadcaster.
He said: "It doesn't make us a channel owner in the conventional TV sense. The plan is to work with commercial partners to bring our archive to mobile phone users.
"And Endemol Mobile is a resource designed to create tailor made content for both mobile and broadband"
Similar mobile divisions are expected to be launched internationally. Endemol recently partnered with MobiTV and Orange to launch a reality channel in the UK.
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