Direct-to-Video Sequels: Franchised and Fancy Free

John Cawley looks into the business of expanding a franchise in the world of direct-to-video.
Posted In | Magazines: AnimationWorld

In what some would say is the killing of the goose that laid the golden egg, direct-to-video sequels are the fodder for many a critic. Dubbed "cheapquels" by some, the trend to create more stories from hit (or even moderately successful) animated films continues to grow at an amazing rate. Starting with two in 1994, by 2005, the market was averaging around half a dozen a year. And this doesn't count the direct- to-video originals and their subsequent sequels.

What has helped fuel the direct-to-video market in animation are some of the same factors that spurred movie sequels. An existing awareness of the property makes video sales easier. In theory it is more cost effective to make a sequel, since a lot of the design work is done. And, equally important, the studio saves the costs of putting it in theaters. One often hears that a movie must make 1.5 to 2 times its cost at the box-office to break even. That is because it can cost millions of dollars to make prints, buy advertising and share with the theaters. When a home video production is done, studios just need to dupe it, box it and ship it. And if the production is based on a previous film, very little advertising is needed. A video that shouts "all new" or "2" promises a new movie to rent or buy.

Around 2000, most animated feature film budgets included the numbers for a sequel as part of the profit plan. If the feature costs $100 million to make, and a sequel costs $5 million, the studio gets two home video titles for around $50 million each. In 2003, a retail trade magazine declared, "Straight-to-video franchises are cash cows for drug stores." The article explained how sales of well-known properties, including Land Before Time, Lion King and Mary-Kate & Ashley titles were the strongest sellers. DreamWorks declared, in 2004, that it would begin focusing on franchise films. A recent editorial in Home Media Magazine stated many studios were rushing to make direct- to-video product, and that it was meant for more than just video. These studios hoped to sell the productions to TV (foreign and domestic) and even utilize it on the Web and other venues.

As mentioned, direct- to-video sequels are descendants of their theatrical brother's movie series from Hollywood's golden age. When tinsel town moguls discovered a popular character, it only made sense to exploit it via repeat appearances. (The producer of Gone with the Wind requested several times for the book's author to write a sequel that could be filmed.) After all, by using the same cast and much of the same sets from film to film, a studio could economically create additional adventures. Also, with a known character, less money and time were needed for advertising. From Andy Hardy to Blondie to Charlie Chan to Francis the Talking Mule to Ma & Pa Kettle to Tarzan, sequels were the lifeblood (and sometimes savior) of the movie industry.

When television arrived, it quickly took the place of movie series. In fact, many of those popular movie franchises ended up on TV in new adventures. But TV did not kill the movie franchise. James Bond, Rocky and American Pie (which has now shifted to video sequels) show the theatrical franchise is alive and well.

Direct- to-video animation began almost at the birth of home video. In Japan, studios realized that there was a great deal of demand for product to play on the Betamaxes and VHS players people were buying. The Japanese called them "OVAs," for "original video animation." The titles, which began to come out in the early 1980s, consisted of three general types -- productions based on manga productions that were too "racy" for TV and movies based on TV series.

In the U.S., video stores were booming due a growing rental market. Since much of Hollywood was still suspicious of the new technology, they were slow to offer product. At the time, most studio films were selling for more than $60. The stores, many being "mom and pop" outfits, were always on the lookout for affordable product to fill the shelves. Independent production houses began to make movies directly for the video market at prices less than the majors.

The year 1981 saw the release of Michael Nesmith's (of The Monkees' fame) Elephant Parts. It featured various music videos and comedy bits created specifically for the home video market. However, most direct- to-video releases were simply films that did not have the prestige or money to mount a theatrical release. Sometimes they were foreign films that could not find U.S. distribution. In year's past, such films might have only appeared at festivals or end up on TV. But with the growing video market, studios were finding they had an alternative to the theatrical field. For example, the 1988 horror sequel, The Howling IV, debuted on video.







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