LOS ANGELES - With the DVD business no maturing, Hollywood studios are looking to the nontheatrical and direct-to-video arenas to boost the bottom line.
Indeed, the latest studio estimates are that only 35% of the DVD business comes from new feature films, putting the onus on home video executives to feed their own kitty instead of just drafting off their theatrical divisions.
"The market is no longer dependent on new releases for growth," 20th Century Fox Home Entertainment president Mike Dunn said.
He noted that one of Fox's biggest pushes is to create TV-DVD franchises like its enormously successful "Family Guy," which has just spun off a direct-to-video feature film, "Stewie Griffin: The Untold Story," with an initial shipment of 1.2 million units.
Other suppliers are looking at direct-to-video sequels to live-action theatrical hits. Universal Studios Home Entertainment (USHE) is among them, with a new line of "Universal DVD Originals" launching Tuesday with "Carlito's Way: Rise to Power," starring Sean Combs.
The film was produced by Martin Bregman, who also produced the 1993 original "Carlito's Way." The producer's son, Michael Scott Bregman, wrote the script and directed the film, which will receive a limited theatrical release in Los Angeles and New York the weekend after street date, chiefly to drum up video sales.
"We have a $24 billion business that consumers absolutely love," said USHE president Craig Kornblau. "And yet, there is very little content made only for this business."
Next up: "American Pie: Band Camp" on December 27, which features Eugene Levy reprising his role in the three previous films as a straight-laced dad.
Universal isn't alone. New Line Home Entertainment will resume making direct-to-video sequels next year, with follow-ups to the 1994 theatrical "8 Seconds," starring Luke Perry, and last year's $57.7 million grosser "The Butterfly Effect" coming in 2006. Also on tap is a fifth "House Party," the second sequel to go direct to video.
"There's a built-in fan base, and what we're trying to do is take a recognizable title and go after the core audience," said Kevin Kasha, senior vp acquisitions and programming at New Line. "Right now, there's a lot of competition in the marketplace for shelf space, and going after sequels and other franchise or branded programming is really the only way you can generate enough noise and use your marketing dollars to get the shelf space you need."
Sony Pictures Home Entertainment also has direct-to-video sequels to 1992's "Single White Female" and 1999's "8MM" in the pipeline. Neither "Single White Female 2: The Psycho," coming October 25, nor "8MM 2," due November 22, feature any returning cast members from the originals.
Even so, division president Benjamin Feingold said, "people know what they are getting." He noted that Sony has produced direct-to-video sequels to "Wild Things," "Sniper" and "Cruel Intentions."
Lions Gate Home Entertainment also is harnessing franchise power, albeit in a different way. The supplier is expanding its lucrative "Barbie" line by releasing three different titles next year, up from two this year and one each in 2003, '02 and '01. The direct-to-video franchise has sold upward of 13 million units and is spawning the launch of a new "Barbie Diaries" line next year.
"Franchising always has been important, but it's more important now," Lions Gate Entertainment president Steve Beeks said. "The market is softening, the consumer is a little more discerning, and unless you have some brand recognition, some franchise power, it's going to be hard to break through the clutter."
Similarly, Disney's Buena Vista Home Entertainment has expanded its "Baby Einstein" line of edutainment DVDs for infants with a "Little Einstein" series targeting preschoolers.
At Paramount Home Entertainment, Paramount has done so well with "Blue Collar Comedy Tour Rides Again," which has sold more than 2.5 million DVDs since its release in December, that the studio is upping its commitment to the comedy genre.
Domestic home entertainment president Meagan Burrows said the studio is "in the process of developing a new comedy label," with several releases in the pipeline, including a third "Blue Collar Comedy Tour" DVD.
Paramount also has inked a multiyear, first-look worldwide agreement with Parallel Entertainment Pictures, producers of the "Blue Collar Comedy Tour Rides Again" DVD, for six DVD premieres, a feature film and a new DVD starring Larry the Cable Guy.
In addition, Paramount is working with Comedy Central to release performances by up-and-coming stand-up acts, Burrows said. "Comedy Central Presents ..." will be a branded DVD line spotlighting contemporary comedians in themed releases.
A major branding initiative also is afoot to play up the MTV and Nickelodeon lines. MTV's big DVD push is to resurrect the "Beavis and Butt-Head" line.
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