Paramount launches DVD premiere unit

Feola held a similar role at Universal, where he worked for 26 years before leaving in 2004. In his most recent role at Universal, Feola headed Universal Home Entertainment Productions, where he led the unit to create successful video spin-offs of The Land Before Time, Bring It On and American Pie. He also oversaw the studio’s other video and TV production divisions: Universal Pictures Visual Programming and Universal Cartoon Studios.

Paramount’s yet-to-be named division will develop and produce sequels, prequels and remakes based on library films from Paramount Pictures, Paramount Vantage, DreamWorks, MTV Films and Nickelodeon Movies. The division also will develop films based on programming and properties from other Viacom brands, including BET Networks, VH-1, Nickelodeon, Comedy Central, MTV and Spike TV.

The new division is Paramount’s latest effort to bulk up its direct-to-DVD slate. In 2005, Paramount Home Entertainment created a DVD premiere department headed by worldwide acquisitions president Ellen Pittleman. At the same time, PHE partnered with sister companies MTV Networks Music and Logo Enterprise Group to produce direct-to-DVD films based on the cablers’ programming.

Pittleman will continue to head home entertainment acquisitions for DVD distribution.

Feola’s division will create four to six films a year and will start its own development and business affairs department. Feola declined to say what the budget range will be for the films. He will report to worldwide marketing, distribution and home entertainment president Rob Moore.

“This new division marks another way Paramount is maximizing our multi-label strategy to target development for both theatrical releases and home entertainment product,” Moore said in a statement announcing the new division and appointment. “Having launched Universal’s made-for-home entertainment business, Louis has the expertise and keen eye for development to truly maximize our assets.”

Feola is staffing up the division and has begun mining Paramount’s library for the division’s first projects. He said he’s focusing on properties that have brand recognition from all genres across all Viacom properties.

“It’s really going to be about opportunity,” he said. “We don’t want to get narrow-scoped.”

Creating films based on established brands makes it easier for the studio to get placement at retail and comes with built-in consumer recognition, he said.

Paramount is the latest studio to reinvent its direct-to-DVD business in the last couple of years. 20th Century Fox Home Entertainment, Warner Home Video and MGM all launched new development divisions, and Universal launched a new line of DVD Originals based on high-profile theatrical films. Buena Vista Home Entertainment already had a separate division.

The area is a growing revenue stream for studios. In 2006, direct-to-video releases generated $1.3 billion in revenue in the U.S., and that’s expected to grow 5% to 7% this year, according to studio sources.

“Made-for-home entertainment content is a category with huge growth opportunity for Paramount Home Entertainment,” Paramount Pictures worldwide home entertainment president Kelley Avery said.