GoodTimes, the distributor of the successful Rudolph and the Island of Misfit Toys (2001), has recently released The Night Before Christmas, starring the voice talent of Kevin Kline. The CGI film is an adaptation of the work of children’s book illustrator Mary Engelbreit, who has been described as the Norman Rockwell of our times. For its direct-to-home features (70-90 min. length), with sufficient quality and some recognized voice talent attached, the production cost ranges between $750,000 and $1.5 million, says Sondheim. After acquiring rights to a property (e.g., a children’s book), and hiring scriptwriters and illustrators to work on the story and boards, the animation is outsourced to studios in Canada, Europe and China. Then the project is sold to international television and video markets, while GoodTimes retains domestic distribution rights.

For Rescue Heroes: The Movie, a CGI feature produced by Nelvana and based on the Fisher-Price toy franchise, Peter Maule, vp of home entertainment and retail at Nelvana, says that the ideal co-partnership extends across multiple revenue streams: broadcast television, home video and merchandising. While every financing arrangement is different, a common scenario may include a 50/50 share of production costs in the form of an advance. The higher the percentage of financial contribution, the more rights and territories are kept. Each company brings core competencies to the partnership, with agreed-upon creative input, to achieve the best product, says Maule. While the cost of production depends on the quality of the animation and the star power, a good CGI direct-to-home feature would be $5 million to $10 million.

The first BIONICLE DTV was such a great success that it has spawned two sequels, including BIONICLE 2: Legends of Metru Nui (above). © 2003 the LEGO Group. © Buena Vista Home Ent. Inc. All rights reserved.

The highly popular BIONICLE: Mask of Light, based on the LEGO toy franchise and distributed by Miramax, is a co-production of Create TV & Film, CGCG, Creative Capers Entertainment, LEGO and Wang Film Production. Bob Thompson, executive producer of Create TV & Film in London, and co-creator of the story for the direct-to-home feature, says that his production company was hired by LEGO to oversee the BIONICLE franchise. Much of the development, layout and elaborate preproduction work are done at Creative Capers in Glendale, California, before being forwarded to Taiwan for final animation. BIONICLE: Mask of Light was released worldwide in 27 markets more than eight weeks to have an instantaneous global presence.

BIONICLE 2: Legends of Metru-Nui was released in 2004, and it is poised to do equally strong business based on pre-existing awareness of the brand and its built-in audience. BIONICLE 3 is currently in production, on the horizon for distribution in 2005. The BIONICLE direct-to-home features are created on a one-year schedule from start to delivery, with overlapping preproduction (6 months), production (6-8 months), and post-production (3 months).

Jeff Tahler, vp of acquisitions at Miramax, said that big toy companies are in a position to secure their own financing and develop their intellectual properties in-house, thereby retaining a lot of rights when negotiating distribution and merchandising deals. Smaller operations that may not have the capital to develop their own properties can look for a co-production partner, and, with the right idea brought to them, Miramax may fully finance a project or provide a negative pickup deal. The general cost for a movie like BIONICLE: Mask of Light is $3.5 million to $5 million, says Tahler.

Nevertheless, Artisan is among the top distributors of original direct-to-home animated titles, including features based on the Barbie, Hot Wheels and Rescue Heroes toy franchises. Partnered with Mattel and Mainframe Entertainment, the first three Barbie titles have sold more than 10 million units, with Barbie: The Princess and The Pauper (2004) set to continue the perennial trend.

Artisan, as part of Lions Gate Family Home Ent., has also recently announced a deal with Marvel Enterprises to develop, produce and distribute up to eight original direct-to-home animated features based on the superhero characters of the Marvel universe, beginning with The Avengers in early 2006. Also due in stores in 2006, Artisan is co-producing a direct-to-home feature based on the popular PBS children’s character Arthur, and the company is distributing the first Care Bears movie in 15 years.