It will cost more than your average DVD
I'm curious - Why assume it is going to cost more? If anything I would think WB would be inclined to price it lower than a heavily advertised theatrical release with more "name" actors just to stay competitive. If you're assuming a smaller release means higher per unit costs than a "big" film, I don't think you're on very firm ground.
1) WB already priced in its sales estimates - based on the performance of the season sets, movies and
Crusade,suitably discounted because not every fan is going to buy
TLT - when they set the production budget. There's also the fact that at a certain price point you sell more copies (and thus make more profit in the long run on a smaller per-unit return) than you would at a higher and presumably "more profitable" price.
2) Hollywood has reached the point where most films don't turn a profit at the box office. A few blockbusters keep the theatrical divisions going, while the monthly bills are mostly paid by the series cranked out by the TV side of the house. (Or rather, the overseas and eventual syndication sales of those series, since most of them
also lose money based on purely domestic revenues while they're in production.)
The reason the studios aren't bankrupt is that most feature films
do eventually break even or turn a small profit - but only thanks to ancillary sales to airlines, pay-per-view, premium cable, network broadcast and so on down the food chain. Today DVD sales alone are often the difference between a theatrical film ending up in the red or the black. That means the DVDs start off "in the hole" to the tune of however much short of production and distribution costs the box office return fell. Add in DVD mastering, closed captioning and all the rest and the fixed costs "production" costs to get a theatrical film out the door could be several times the actual production budget, etc. for
TLT - even though the theatrical film itself is theorectically "paid for".
So even with a lot more units produced a theatrical gobbler like
Alexander could have higher unit costs on a production run of 500,000 than
TLT might have on a run of 100,000 copies. (All numbers invented on the spot for purposes of illustration only - I have no idea how many copies of either would be realistic.)
Regards,
Joe