Studio Store Direct Revolutionizes DVDs With Direct Response

Los Angeles (November 9, 2005) – Following on the explosive growth of direct response television, Studio Store Direct has just launched to take direct consumer marketing to a higher, interactive level on DVDs, company executives announced today. Led by proven executives from within the direct response television, direct consumer marketing and entertainment industries, Studio Store Direct has developed a patent-pending process wherein DVD viewers can opt-in through an icon on the DVD menu screen and experience dynamic, multi-media programming featuring consumer products including those from the DVD’s entertainment content being demonstrated for sale at the press of a button. In a nutshell, the technology embeds appropriate infomercials for products on the DVD that users can view on demand.

The company has already lined up key partners. Studio Store Direct announced today that they have formed a strategic alliance with Ventura Distribution, Inc., the world’s leading privately held, independent DVD distributor, to embed direct response commercial content onto DVDs, and with National Lampoon, (AMEX: NLN) the most recognized and diversified brand in comedy.

“The marriage of direct response television methodology with the DVD media platform is an absolute collision that no one saw coming,� said Studio Store Direct CEO Reno R. Rolle. “Our patent pending process will prove that sometimes the simplest ideas are the most powerful. Studio Store Direct intends to capitalize on the DVD as the most rapidly adopted video format in history in order to add value for studios, manufacturers, distributors and all other marketers of DVD content.�

The underlying business model for Studio Store Direct closely resembles that of direct response television but transforms DVDs into user-navigated, interactive media that reaches millions of targeted consumers. Unlike broadcast and cable infomercials, though, Studio Store Direct aims to place the product pitches alongside filmed entertainment appropriate to those products. Upon opting-in to the Studio Store Direct icon on the menu screen with their remote control, consumers will enjoy high production-value direct response television programs that are embedded seamlessly onto the DVD, potentially hosted by one of the DVD’s program’s characters. Consumers can then simply pick up the phone and place orders toll free or with the simple click of a mouse, if they are viewing the DVD on a computer or other internet-connected device. Studio Store Direct will provide distributors a turn key “new revenue” solution by building a virtual cash register within existing DVDs. Managing all operational aspects, Studio Store Direct will deduct hard costs and divide revenue with its studio or distributor partners.

For the independent DVD distributor who typically handles a wide variety of non-theatrical, special interest video content on DVD, Studio Store Direct might produce branded programs to feature the distributor’s own catalog of DVD titles and related products along with licensed merchandise and collectibles. In the case of studio-distributed feature films, DVD viewers will be able to opt-in to Studio Store Direct on the DVD menu to find exclusive offers for products such as licensed merchandise, soundtracks, memorabilia and additional hits from the director.

The potential is huge; The Electronic Retailing Association estimates that the direct response television industry, including infomercials, short-form spot and live television shopping accounts for more than $150 billion dollars in annual revenue. However, television media—the air time–is the single costliest and most prohibitive aspect of direct response advertising. Studio Store Direct circumvents this hurdle by integrating Direct Response content into DVDs.

“We believe Studio Store Direct has created an opportunity that could very well revolutionize the financial profile of DVD’s,� said Larry Hayes, chairman of Ventura. “Reno Rolle and his partners have an impressive track record of success in the direct response business and we are proud to be associated with them in this concept.�

Barry Layne, Executive Vice President of National Lampoon added, “As the leading franchise in home entertainment, National Lampoon has always been ahead of the curve. We are confident in our partnership with Studio Store Direct and will continue the legacy. �