A film that is released direct-to-video (also known as made-for-video, straight-to-video, more recently, straight-to-DVD) is one which has been released to the public on home video formats (historically VHS) before or without being released in movie theaters or broadcast on television. The term is also at times used as a derogatory term for sequels of films that are not expected to have financial success.
In the case of a TV show, low ratings may cause a studio to cancel the show, possibly after having filmed an entire season and aired some episodes. If the show has a considerable fanbase, the studio may release un-aired episodes on video to recoup losses. Clerks: The Animated Series and Firefly are examples of canceled shows which were successful cult hits on DVD. Occasionally outstanding DVD sales may revive a canceled show, as in the case of Family Guy. Originally canceled in 2002, the series was revived in 2005 due partly to its excellent DVD sales.
Direct-to-video releases have historically carried a stigma of lower technical or artistic quality than theatrical releases. Some studio films released direct-to-video are films which have been completed but were never released. This delay often occurs when a studio doubts a film's commercial prospects would justify a full cinema release, or because its "release window" has closed. A release window refers to a timely trend or personality, and missing that window of opportunity means a film, possibly rushed into production, failed to release before the trend faded. In film industry slang such films are referred to as having been "vaulted."
There is a positive side to direct-to-video releases. They have become something of a lifeline for independent filmmakers and smaller companies.
Direct-to-video releases can be done for films which cannot be shown theatrically due to controversial content, or because the cost involved in a theatrical release is beyond the releasing company. Almost all pornographic films are released direct-to-video.
Animated sequels and movie-length episodes of animated series are also often released in this fashion. The Walt Disney Company began making sequels of most of its animated films for video release beginning with The Return of Jafar (the sequel to Aladdin) in 1994. Universal Studios also began their long line of The Land Before Time sequels that same year. In 2005, Fox released Stewie Griffin: The Untold Story for DVD and Universal Media Disc .
Once in a while, a studio that makes a movie that was prepared as a direct-to-video film and release it theatrically at the last minute due to the success of another movie with a similar subject matter or an ultimate studio decision. Doug's 1st Movie is an example of this, quickly changed from a DTV to a theatrical release due to the surprise success of The Rugrats Movie.
Some SpongeBob SquarePants DVD volumes contain episodes not yet aired in the United States. Certain special episodes of Pokémon were released directly on video such as Pikachu’s Winter Vacation. Some Disney Channel shows, such as That's So Raven, The Suite Life of Zack and Cody, Phil of the Future, and Lilo & Stitch: The Series have also had direct-to-video episodes. Some DVD volumes of The Land Before Time also contain episodes not yet aired in the United States or Canada.
In recent years, DVD Premieres have become a substantial source of revenue for movie studios. DVDPs have collectively grossed over $3 billion over the last few years, and have matured enough that DVDP divisions of studios now option their own films. Studios realized that DVDP movies can be shot on a smaller budget, thus allowing studios larger profits with the combined revenues of home video sales and rentals, in addition to licensing movies for television and for distribution abroad (where some DVDP movies do see theatrical releases).
Distributing DVDPs is not a practice reserved solely for larger Hollywood studios. Several companies, such as The Asylum, MTI Home Video, and York Entertainment distribute DVDPs almost exclusively. The budgets for films distributed by these companies are even smaller than those of ones distributed by a larger studio, but these companies are still able to profit off their sales.
In the case of anime, this is called Original Video Animation (OVA or OAV), and their production values usually fall between those of television series and movies. They are often used to tell stories too short to fill a full TV season, and were particularly common in the early 1990s. Sometimes OVAs garner enough interest to justify commissioning a full television series, like Tenchi Muyo!, One Piece, and El Hazard.
With the advent of the 13 episode season format, OVAs are less common now. The majority of OVAs released in today's market are usually continuations or reworkings of recently completed TV series. For instance, the DVD release of a TV series might include a bonus episode that was never broadcast as a sales hook.