This is a partial transcript from "Your World with Neil Cavuto," February 25, 2005, that was edited for clarity.

STUART VARNEY, GUEST HOST: Not everyone in Hollywood is trying to push the envelope when it comes to sex and violence. My next guest takes pride in putting his money behind only family-friendly films these days, like "Because of Winn Dixie" (search), which is in theaters now, by the way. And one very popular movie, up for six Academy Awards this Sunday, "Ray."

Joining from us L.A. is Cary Granat, CEO of Walden Media.

Well, sir, if I'm not mistaken, you want to do all family-friendly films, all kid-friendly films, but you came from Miramax (search), I think, where you produced "Scream," which is one of the most gory movies of all time. Have you had a change of heart?

CARY GRANAT, CEO, WALDEN MEDIA: I certainly did. I also had three children. And I really have committed myself and found some fantastic partners, people like Phil Anschutz and my partner in Boston, Michael Flaherty, who are all committed to creating quality entertainment that's both educational and inspirational.

And I think it's really important that we're consistent in what we're providing the family audience so they can trust our brand and trust the type of experience they can get in the theater.

VARNEY: If you believe that there is a big market for family-friendly movies, the kind you want to produce, if you believe there's such a big market, why do you think that Hollywood is not exploiting it, if there's profit opportunity?

GRANAT: Well, I think certainly Hollywood (search) is. We're very excited right now and very fortunate that some of the major Hollywood studios now have entered into partnerships with us.

So, you know, we're fortunate to be in business with the Walt Disney Company on "The Chronicles of Narnia," which is a big film coming out on December 6. We have a Jim Cameron film with them in theaters now. We have partnerships with FOX, like with "Because of Winn Dixie." Partnerships with Viacom and Paramount.

VARNEY: Just let me ask you about the movie, "Ray," which I believe you had a hand in producing.

Our previous guest, whom you may have heard, Mr. David Kinney, who has that new ratings system, he suggests there's a great deal of profanity in that movie, "Ray," very strong language, indeed. How do you square that with what you're doing now?

GRANAT: Well, "Ray" is a film which, in my opinion, is one of the most inspirational stories there is. We were very fortunate that Phil Anschutz and one of the former managers of the company, Howard Baldwin, worked so well with Taylor Hackford to create a story which wasn't an R-rated film.

And in my opinion, there's nothing in "Ray" that's exploitational or genre in any way. It's a film which is, you know, one of those types of experiences that you come out completely elated and talk about for six months thereafter about what you've learned from that film.

VARNEY: All right. Cary Granat. As a parent myself, I wish you well in your new endeavor.

GRANAT: Thank you so much.

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