All six of the Barbie direct-to-home entertainment movies to date have hit No. 1, including its most recent release, Barbie and Magic of Pegasus. Courtesy of Mattel Inc.

Reaching the Audience
While entertaining feature film sequels like The Hulk 2 and Dr. Doolittle 3 are considering bypassing cinemas and to make their debuts direct-to-DVD, the delivery format is also attractive to those who wish to promote brands, and to those who wish to teach.

In February 2006, Mattel Inc. reported the success of its original direct-to-DVDs featuring Barbie, stating that all six of the Barbie direct-to-home entertainment movies to date have hit No. 1, including its most recent introduction, Barbie and Magic of Pegasus.

“To succeed in 2006 and beyond, we will concentrate our efforts on enhancing innovation and focusing on improving the Barbie play experience — an experience that creates an emotional connection between girls and Barbie,” comments Chuck Scothon, svp/gm of the girls division for Mattel. “We are excited about the 2006 Barbie line-up with three new direct-to-DVD movies and a full line of supporting products across multiple categories, plus all new fashions and accessories.”

Also this past February, DIC Ent. (DIC) and investor Warren Buffett announced that they have joined forces to create an all-new, direct-to-DVD animated series, The Secret Millionaire’s Club, to promote financial literacy to kids. The Secret Millionaire’s Club, now in production, will consist of 13 titles with the first two titles scheduled for release in fall 2006.

The series, featuring the words, voice and likeness of Buffett, will focus on financial lessons utilizing child-relatable characters and real-world situations, as well as entertaining adventures. The Secret Millionaire’s Club will be released by a major home entertainment distributor and will be available for worldwide distribution.

Ellen Pittleman of Paramount looks for films that offer a unique, repeatable entertainment experience for a specific consumer whom can be targeted effectively.

Dynamics of Distribution
However, today’s direct-to-DVD economic model for distribution is quite different than the direct-to-video market of days gone by. “In the ‘80s, producers were creating content that they were able to sell for relatively high price points, so volume was less of an issue and the financial returns were quite profitable,” explains Paramount vp Pittleman. “Additionally, in-store real estate was not competitive with other product categories, so original films had an opportunity to find an audience as they sat on rental store shelves.”

Pittleman says that as the business has changed to a retail based industry from a rental one, the dynamics of the industry have become quite different. “If the video section in a big box store is not driving enough traffic — because often video is used as a loss leader — that real estate will get reallocated to a different department that may be generating bigger returns. Consequently as a distributor, unless you have a product on which you are able to demonstrate a consumer intent to buy, retailers would prefer to place a different product where they know that there is some intent to buy.”

“Moreover,” Pittleman continues, “much like the theatrical business, unless the sell-through to consumers during the first week of sales meets expectations, the retailer may also determine that the margins are beneath what they were expecting and decide to send the product back so that it can be reallocated to a more profitable title.”

Rumors have been circulating about a return of Fox favorite Futurama via direct-to-DVD. © and ™ 1999 Twentieth Century Fox Film Corp. All rights reserved.

“So, the business is as tough as it ever was, especially with price points dropping in an effort to attract more customers to these big-box stores,” Pittleman says.

Fan Demand
TV and movie fans are not shy about expressing their desires for new content based on old favorites. Rumors have been circulating about a return of Fox favorite Futurama via direct-to-DVD, and a posting by voice actor Billy West on his website offers new hope — but it’s not the news that was expected. He writes, “The other good news is that they’re doing 26 new episodes of Futurama for TV and we’re hammering out the deal now. The original plan was to have the DVDs first but that’s no longer the case.”

And what of the return of Star Trek: Enterprise? Paramount vp Ellen Pittleman says only this, “The studio is currently contemplating a new feature.”

Janet Hetherington is a freelance writer and cartoonist living in Ottawa, Canada. She shares a studio with artist Ronn Sutton and a ginger cat, Heidi.