Studios Expand DVD Marketing Concepts
By JILL PESSELNICK
May 25, 2002
LOS ANGELES - When The Lord of the Rings: The Fellowship of the Ring streets
Aug. 6 on DVD, the New Line Home Entertainment release won't simply offer fans
the now-standard behind-the-scenes footage, commentaries, and featurettes. It
will also include a 10-minute preview, narrated by director Peter Jackson, of
The Two Towers—the next theatrical release in the trilogy, which comes out in
December.
It is only the latest high-profile example of how a growing number of studios
are taking advantage of DVD's multiple movie-marketing opportunities. From
upcoming movie teasers to ongoing DVD-ROM content, the popularity of DVD has
forged an expanding synergy between the promoting of franchise titles by
studios' home video and theatrical marketing teams and like-minded properties
that many believe can drive sales.
As Lions Gate Home Entertainment director of worldwide DVD operations Zachary
Hunchar notes, "We all get paid from the same place, so anything one
division can do for the other helps the company."
New Line VP of theatrical marketing Kevin Shelby concurs, adding, "Whereas
be-fore, home video was sometimes a lower priority, now we see home video as an
important tool by which to enhance our efforts and increase our chances for a
strong-performing theatrical release."
The strength of DVD is undeniable. Recent first-week DVD sales include 2.5
million units for DreamWorks Home Entertainment's Shrek and 3.7 million units for
Buena Vista Home Entertainment's Pearl Harbor. As Lord of the Rings
demonstrates, one way to tie video and theatrical product together is by moving
away from the traditional trailers most viewers are used to seeing on VHS tapes
and instead making the trailers special-content features themselves.
"Contrary to popular belief, not everyone in the world went to the theater
to see Lord of the Rings," New Line's Shelby says. "[With The Two
Towers preview segment on DVD], we hope to reach a whole new segment of the
populace who might not have the propensity to go to the movies, thus compelling
them to go to the theaters in December [when Towers is released]."
This preview also helps keep the franchise in people's minds throughout the
year, notes Mike Mulvihill, VP of DVD content for New Line's home entertainment
division. "One thing that is really important to us with this property is
to keep it fresh through the course of its three-year release pattern. Home
entertainment is playing a key role in that, carrying it from being an Oscar
winner through to being an event title on DVD in August and a unique title
again in November and then the Towers theatrical release in December." A
separate, extended-edition DVD of The Fellowship of the Ring will be available
Nov. 12; the final part of the trilogy will hit theaters in December 2003.
As with Lord of the Rings, Warner Home Video is offering a preview of the
sequel Harry Potter and the Chamber of Secrets on its May 28 DVD release of
Harry Potter and the Sorcerer's Stone that also includes comments from the
film's producer, David Heyman, and its director, Chris Columbus. This is
expected to keep interest in the franchise high, as well as potentially
generate box-office dollars.
Warner VP of DVD marketing Michael Radiloff says, "Here you had a 12-month
window between the two movies. Really, the video release was viewed as a bridge
to keep the Potter world alive during that time." The next Potter film
comes out this Christmas season.
Such DVD previews are more consumer-friendly than VHS trailers. Studios can
plug theatrical releases without being too intrusive, because DVD viewers can
choose whether to watch trailer materials and can do so at any time. But
trailers on VHS tapes follow a linear pattern: Viewers must watch or fast
forward past them to get to the film, so a 10-minute preview can be considered
too invasive.
Non-franchise trailers are also becoming more prevalent. Such studios as Lions
Gate report that non-franchise film previews on its DVD product have generated
interest in upcoming films from consumers and reviewers alike. The company
featured a trailer of its teen-oriented theatrical film The Rules of Attraction
(Sept. 27), starring James Van Der Beek and Jessica Biel, on its DVD release O,
which appeals to a similar demographic. Lions Gate's Hunchar says he has
"seen some instances online of reviewers that have reviewed our [home
video] product and have also spoken very positively about the trailer. They've
written that they are looking forward to this film coming out." Such bonus
mentions create more impressions for the forthcoming release.
While VHS tapes have included (and continue to include) trailers similar to the
featured film, Hunchar explains that it is the "perceived value" of a
DVD that makes trailers on that product more effective. "If you put a disc
out that has a couple of trailers plus commentaries, deleted scenes, and all
that stuff, it seems like it's a bigger value to the consumer."
DVD-ROM OPTIONS
In addition to the trailering and preview features, the product's online and
ROM capabilities are increasingly tying in to forthcoming movies. A noteworthy
recent example is the inclusion of a preview for the next Star Wars film,
Attack of the Clones—which opened May 16—on Fox's DVD release of Star Wars
Episode 1: The Phantom Menace (Oct. 16, 2001). The DVD was used as a key to
unlock a Web site featuring the trailer material.
Universal Studios Home Video debuted its new DVD-ROM feature, Total Axess, with
the April 9 release of the Spy Game Collector's Edition DVD. By inserting the
DVD into a computer's DVD-ROM drive, it can link to an exclusive Web site for
viewing special bonus materials and trailers of upcoming Universal theatrical
titles.
Such features as Warner Bros.' online Harry Potter trading-card game
(accessible only via the new DVD) have also been making their debuts. Radiloff
says, "The great thing about ROM is that content that's on a Web site can
be changing, enhanced, and added to, whereas the material on the DVD, unless you
come out with a special edition with more features, once you send it off to
replication, [it is] done. ROM offers a lot more flexibility."
While both ROM and trailer features are largely under the purview of studio
content teams, film directors are also recognizing their potential value.
Jessie Nelson, director of I Am Sam—starring Academy Award-nominated actor Sean
Penn—says, "I'm sure that [teasing future theatrical projects on DVD] is
the next wave where DVD can go. I'm sure I'll also begin to open my mind to
things [such as DVD-ROM content] as they start unfolding." (I Am Sam comes
to DVD June 18.)
TIMING RELEASES
Home-video departments have increasingly been working to time their releases to
best coincide with consumers' interest in a particular upcoming theatrical
title. This can take the form of back-catalog releases or of reworkings of
existing product into special-edition DVDs. For example, Warner Home Video is
releasing the first five episodes of '70s TV cartoon Scooby-Doo on DVD June 4,
and it is also premiering three long-form animated Scooby movies on DVD:
Scooby-Doo Goes Hollywood, Scooby-Doo and the Ghoul School, and Scooby-Doo's
Creepiest Capers. These titles, which feature an array of DVD-ROM and other
special features, will fall into the marketplace just before the June 14
theatrical release of Warner Bros.' Scooby-Doo live-action movie.
"As soon as we know that a movie is green-lit or going into production, we
work with the heads of [theatrical] marketing," Warner VP of family
entertainment marketing Ewa Martinoff says. "We're going to offer free
tickets to the movie inside specially marked packages. This is a direct,
synergistic effort. It's also important to develop new [DVD] features,
especially for kids. They are going to be into the new trends, and we want to
make sure that we are on top of that."
Columbia TriStar Home Entertainment is taking advantage of new theatrical
releases by marketing two reworked special-edition DVDs of Men in Black and
Stuart Little on Tuesday (21) that contain all-new special features and
trailers for their respective sequels. (Men in Black II is due July 3 in
theaters; Stuart Little 2, July 19.) The new Men in Black DVD contains trailers
for Stuart Little 2 and Spider-Man. Stuart Little includes a free ticket to see
the new movie.
FILMMAKING SYNERGIES
The relationships that need to exist between home video and theatrical
departments so trailer and DVD-ROM features can be created are now being
generated far earlier in the filmmaking process. Twentieth Century Fox Home
Entertainment senior VP of marketing Peter Staddon says, "The studios as a
whole are definitely looking at home entertainment now and saying, 'Yes, this
is an important part of the overall property.' What's happening is that people
aren't thinking about the [theatrical film] and that the DVD will just come out
later. It's becoming a part of a seamless rollout of the property."
With DVD grosses often outpacing opening-weekend box offices—as Staddon notes,
"On X-Men, the opening theatrical weekend was [approximately] $57 million,
and we did $65 million in revenue on the first weekend the DVD came
out"—missed synergistic opportunities can have a heavy impact.
"These opportunities are a much bigger deal than [they were] before,"
Artisan Home Entertainment senior VP of marketing Hosea Belcher agrees.
"For instance, with Jonah, the VeggieTales movie that is coming up for us,
we are partnered at the hip with [theatrical]—even though the video release
isn't until 2003 and the theatrical release is this fall. We are working
closely with them to take advantage of every synergistic opportunity in terms
of promotional partners, in terms of what goes on the DVD, trying to secure
partners for both the theatrical and DVD, how we're going to handle publicity,
what we're going to dole out for theatrical and save for DVD. It's definitely a
joint effort."
DVD AND THE BOX OFFICE
The burgeoning opportunities linking DVD to upcoming theatrical releases begs
the question, Do these features have any impact on DVD or box-office receipts?
While hard numbers are difficult to come by, studio executives and retailers
believe the answer is yes. Artisan's Belcher thinks that theatrical trailers
can induce people to buy new DVDs. "You probably can't isolate it, but I
know anecdotally and from some research that we have done that overall, these
things play a part. My personal feeling is that it's not going to convert
people who really hate the movie. But I do believe that there are a set of
people out there that I call 'on the fence.' They may say, 'I was thinking of
buying this movie, but wow, if I can get a glimpse of the next one, then OK,
I'll buy it.' Can I quantify it? No. But I do intuitively in my gut believe
it."
John Thrasher, VP of video for the West Sacramento, Calif.-based Tower Records
chain, believes that including theatrical previews can directly influence sales
of a particular DVD. "For the sequel efforts and big-budget pictures,
these things are very effective. It is difficult to quantify, but I think it
does drive people [into stores]."
Likewise, previews on DVD may also influence the theatrical box office. New
Line's Shelby explains, "The inclusion of such a feature increases
awareness and interest in a theatrical release. You would hope that interest
would translate into box-office dollars."
DVD CONCERNS
While most home-video companies concur that synergies with theatrical films
(either through the timing of product releases or through the inclusion of
material on DVDs) will continue to expand, some are concerned that DVD quality
could suffer as a result.
MGM Home Entertainment senior VP of marketing Alex Carloss fears that
cross-promotional materials could ultimately ruin a film's quality. "Any
space you devote to all of these special features is digital space that is not
dedicated to the quality of the transfer," he says. "Our approach is
to give [consumers] what they are looking for, which is the best possible
picture and best possible sound first and foremost. Then, give them deleted
scenes and alternative endings. And once you've dealt with that, if there's
still room, then you start dealing with additional space you can use to
cross-promote."
Directors, too, can object to including these features. David Naylor, a DVD
producer who has worked on a variety of discs (including Die Hard II and Die
Hard III, On the Waterfront, and Dr. Strangelove, as well as season sets for
Buffy the Vampire Slayer, The Simpsons, and The X-Files) says that "some
directors are very particular about what goes on their DVD. It's the responsibility
of the studio to be somewhat deferential to a director of a film. It makes
total marketing sense to [include previews], but you don't want to incur the
wrath of the director by doing it."
Additional features like DVD-ROM may also not appeal to the common denominator.
"I think a lot of people want to experience the DVD in one box,"
Fox's Staddon says. "It's going to be an exceptional circumstance that
will make them get up, walk over to the computer, load up the disc, and then
watch it. Personally, I don't think we've found how to make DVD-ROM content
work as effectively as it can. With the example of Star Wars, you're dealing
with a very loyal and very fanatical fan base that would crawl across broken
glass to see a new trailer."
Many note that the DVD-ROM solution will be when DVD set-top boxes have
Internet connections themselves. "That's when you're going to see that
kind of entertainment explode," Buena Vista VP of brand marketing Gordon
Ho predicts. "We're going to provide those vehicles. But capability is one
thing, and what consumers are actually desiring is another. For now, I think
there's a chicken and egg thing going on. It's really going to be incumbent on
the consumers seeing if there is sufficient value for them to go beyond what
they're used to doing."
Despite their qualms, studio executives conclude that while obviously
benefiting their respective companies, these promotional features and the
growing relationship among divisions are also satisfying consumers who are
interested in entertainment titles. "I think the consumer is getting
better product and better value as a result," Staddon says. "If we
were just milking the consumer and not paying attention to what we're putting
out and not delivering value, then it would be a very short-term strategy. I
don't think that is actually happening."