http://www.latimes.com/technology/la-et-dvd2aug02,1,4731239.story?coll=la-headlines-technology
Direct-to-videos rising straight up
The advent of DVDs has helped propel the once-lowly market into a
$3-billion industry. And it's still climbing.
By Elaine Dutka
LA Times Staff Writer
August 2, 2005
When the Walt Disney Co. released "The Return of Jafar" in 1994, the lowly
direct-to-video category was associated with erotic thrillers, cheap
comedies and material that had been targeted for theaters but wasn't good
enough.
That movie, based on characters from the studio's animated hit "Aladdin,"
sold 15 million units, taking in nearly $300 million worldwide. Along with
Universal's "The Land Before Time II," another straight-to-video success
that year, it became a social climber, distancing the category from its
lackluster past.
Propelled by the advent of the DVD, the straight-to-video market is now a
$3-billion-a-year infusion into a maturing business, gaining creative
legitimacy and making financial waves. Nearly every major studio has a
division devoted to DVD "originals" or "premieres," as the studios prefer
to call this cost-effective revenue stream.
"If they wanted to go theatrical with one of my films, they could," said
president of DisneyToon Studios Sharon Morrill, who has sent out more than
25 made-for-video titles since "Jafar" took off.
With special effects more affordable and recognizable talent signing on,
the line separating big-screen movies and original DVD fare is becoming
increasingly blurred, agrees Kevin Kasha, senior vice president of
acquisitions and programming for New Line Home Entertainment. Studios are
not only producing titles, they're acquiring material at film festivals as
well. That can make all the difference for an off-center feature that
previously would have been consigned to late-night cable.
"When I started out in the mid-1980s, a direct-to-video movie was an
action-adventure-horror piece like 'Ice-Pick in the Eye, Part 12," said
Kasha, who was hired last year to build the company's "exclusive to DVD"
programming.
A-list producers such as Joel Silver ("The Matrix," "Lethal Weapon") and
John Davis ("I, Robot," "The Firm") have climbed aboard and, although the
stigma has not fully evaporated, some stars are following suit. Oscar
winner Hilary Swank appears with Patrick Swayze in New Line's "11:14," a
film on which the actress is also a producer. Phil Collins composed songs
for Disney's "Tarzan 2." Whoopi Goldberg and Matthew Broderick reprised
their roles in "Lion King 1 1/2 ." And Steven Seagal's Steamroller
Productions turns out DVD originals such as "Belly of the Beast" with
budgets of $15 million to $20 million.
"When that caliber of talent gets involved, the rest of the industry starts
noticing," said Scott Hettrick, editor in chief of the trade publication
DVD Exclusive.
Amid the scramble for perennial "tent-pole" movies such as "Batman" and
"Star Wars," studios are exploring low-budget product and ways of
maximizing their properties. And at prices ranging from $2 million to $20
million, made-for-DVD movies are a bargain. They don't require costly film
prints, $300,000 premieres and $50-million marketing budgets.
But like their big-screen counterparts, they have profitable ancillary
after-lives. Sci-fi and horror titles are staples on domestic cable
channels and international TV.
In May, 20th Century Fox Home Entertainment sent out "Sandlot 2," the first
title from its division dedicated to DVD exclusives, and it became the
year's top-selling live-action title in the straight-to-DVD category, with
more than a million units sold. When things kick into gear, the studio
hopes to release four or five DVD premieres annually. Upcoming titles
include sequels to "Behind Enemy Lines," "Like Mike" and "Wrong Turn."
Although shoots are shorter and money tighter, these projects can be
talent-friendly, said Tom Siegrist, vice president of production for the
company.
"Filmmakers are viewing DVD originals as a place where they have more
creative control," he said. "And they're finding that when we decide to
make a movie, we do. Our development-to-production ratio is higher and
faster than in the feature group because of known quantity in our library's
brands." The studio's straight-to-DVD promotional budgets, he said, fall
into the "seven digits."
Producer Davis had hoped there would be a third big-screen installment of
his "Dr. Doolittle" series. Fox shot down the idea in favor of
direct-to-video, however, and he opted to sign on. He's creating a
partnership that would bring 3-D animation, produced offshore, to feature
films and send out two direct-to-DVD titles a year. "Dr. Doolittle 3,"
which cost about $6 million to make, could take in $12 million to $15
million, Davis said.
Family fare has dominated the direct-to-video market since the early days
of VHS. Universal broke the $1-billion mark with its "The Land Before Time"
series (the 12th installment is in production) and has been successful with
its "Balto" and "Beethoven" franchises. Disney's "Mulan II" is the No. 1
animated direct-to-DVD of 2005, and "The Lion King II: Simba's Pride" is
the top-selling direct-to-video release of all time, with $464.5 million
worldwide in sales and rentals.
The market diversified with the advent of DVDs, whose early adapters were
primarily young males. And, with DVD players now in 75 million households,
the public appetite is even broader.
Miramax Films' Dimension division built a lucrative business around
direct-to-video "genre" pictures such as "Hellraiser," "Dracula" and "The
Crow." Rogue Pictures, a recent live-action addition to Focus Features, is
putting out its first DVD original release, "American Pie Presents Band
Camp" late this year, in addition to theatrical films. And Lions Gate is
sending out 11 DVD horror premieres in September alone.
Silver, a producer, has integrated the DVD-original concept into a new
business model. Focusing on home entertainment instead of made-for-TV
movies or pay-TV, he plans to send out two to four direct-to-video titles
annually, budgeted at $5 million to $7 million apiece. The $6-million
"Dungeons & Dragons: Wrath of the Dragon God," based on the movie Silver
produced in 2000, is due out Nov. 8.
"This is, by no means, a distraction from Joel's core business, which is
theatrical," said Steve Richards, chief operating officer of Silver
Pictures. "But it is a business opportunity, a way of making additional
product for Warners and, sometimes, movies outside the studio system."
The direct-to-DVD niche may fill a void, industry analysts say, providing a
home for material that, at one time, would have been made-for-TV movies,
which are no longer in great demand. And the arena might be more hospitable
to critically acclaimed films such as "Cinderella Man," which misfired as a
big summer theatrical movie.
"Artists and filmmakers interested in projects of passion might find a more
receptive audience and a lucrative business premiering their movies
exclusively on DVD," said Hettrick, of DVD Exclusive. "The potential is
certainly there. Home video releases of theatrical films such as 'Ray' and
'Napoleon Dynamite,' for example, more than doubled their box office take."
*
(BEGIN TEXT OF INFOBOX)
DVD sales
Here are the 10 top-selling DVDs for the week ending July 24. Rankings are
compiled from a variety of major retailers, including Amazon.com, Best Buy,
Blockbuster and Circuit City.
1. "Constantine"
2. "Man of the House"
3. "Million Dollar Baby"
4. "Ice Princess"
5. "Hitch"
6. "The Pacifier"
7. "Hostage"
8. "Hide and Seek"
9. "Laguna Beach: First Season"
10. "Chappelle's Show: Second Season"
Source: DVDExclusive.com
================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923 Fax: 713-743-3927
antunes at uh dot edu
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