``GREASE'' DVD PREMIERE LATEST TOOL IN MARKETERS' KIT.

Byline: Greg Hernandez Staff Writer

Flashbulbs popped and television crews jockeyed for position as John Travolta and Olivia Newton-John strutted down a long red carpet for the premiere of the smash-hit ``Grease.''

No, it wasn't a flashback to the 1970s; it was last Tuesday at the Paramount Studios back lot where, with all the trappings of a major movie premiere, the ``Grease'' DVD was released.

Travolta and Newton-John even got up on stage and sang a medley of the best-known songs from their 1970s classic musical, helping Paramount Home Video get more media coverage - from shows like ``Entertainment Tonight,'' ``Access Hollywood'' and ``E! News Live'' - than do most major theatrical premieres.

``You can't get better coverage than we did on this event,'' said Michael Arkin, senior vice president of marketing of Paramount Home Video. ``With Olivia and John and what they pulled together, everyone was just a fan and on their feet.''

DVD sales have grown so fast and become such a major source of studio revenue that the release of a new major movie in digital format is now a major event.

While none has been on the scale of the ``Grease'' party, the DVD premiere is a fast-growing trend in the entertainment industry, with video divisions trying to create as much heat as possible around their latest titles in an increasingly competitive marketplace. Studios say publicity from these premieres can be priceless in helping drive the all-important first-week sales.

This type of event is quickly picking up steam. On Monday for example, Universal Home Video will be pulling out all stops with an event on Sunset Boulevard for the DVD launch of ``The Scorpion King,'' which hits stores Tuesday. The event will include the re-creation of a scene from the movie.

``This is a very integral part of our entire marketing campaign,'' said Ken Graffeo, Universal Home Video's executive vice president of marketing. ``It's not just that the movie is coming out on DVD, but it allows us to highlight the special features on the DVD, and that is very important to the DVD buyer.''

Approximately 40 percent of a new title's overall sales occur during the first week - turning the exploding DVD industry into the same kind of horse race as the weekly theatrical box office derby where opening weekend grosses usually make or break a film.

``With DVD being so healthy, it's a very competitive landscape, and you have to break through the clutter and make sure to reach the consumer in all outlets,'' Graffeo said. ``Everywhere they turn, we want them to know that this film is coming out.''

A key to getting widespread media coverage lies in reuniting the cast from the film or a high-profile director.

Warner Home Video scored a major coup this month when it got original cast members Debbie Reynolds, Donald O'Connor, Rita Moreno and Cyd Charisse to reunite for a red carpet premiere for the new DVD version of the classic musical ``Singin' In The Rain'' at the Academy of Motion Pictures theater in Beverly Hills.

On Tuesday, Warners has a similar event planned in New York for the DVD premiere of ``Amadeus'' - with director Milos Foreman, stars Tom Hulce and F. Murray Abraham and ``Sex in the City'' star Cynthia Nixon, who was in the cast of the 1984 film.

Universal, which has at least two more DVD premieres, staged its first home video premiere last fall for the home video release of the Dr. Seuss story ``How The Grinch Stole Christmas.'' Director Ron Howard appeared at a red carpet event at the new Hollywood and Highland complex on Hollywood Boulevard that attracted plenty of coverage, and the film went on to huge sales.

Fox Home Entertainment took over a floor of the Morgans Hotel in New York City last November for the DVD launch of the musical ``Moulin Rouge,'' re-creating sets from the film and making director Baz Luhrmann available for endless interviews.

Home video executives from various studios agree that television and print coverage of these events can generate consumer interest in a far more organic way than commercials and ads in the Sunday newspapers, resulting in more credibility with consumers.

Although a typical movie premiere costs about $150,000 to pull off, the ``Grease'' event was much more costly what with food and drink for 15,000 people - dispensed from an In-N-Out Burger mobile kitchen - and a gift bag for each guest that included a T-shirt and a ``Grease'' DVD.

The New York street of the studio lot was transformed for the event, which also served as a kick-off for DVD versions of five other Paramount musicals set for release Oct. 6: ``Saturday Night Fever,'' ``Footloose,'' ``Flashdance,'' ``Urban Cowboy,'' and ``Staying Alive.''

``It wasn't inexpensive, but every dime we spent was worth it because of the coverage,'' said Arkin, who declined to reveal the final tab. ``That's why you do these events.''

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2 photos

Photo:

(1) Original cast members John Travolta and Olivia Newton-John sing at Paramount Home Entertainment's premiere Tuesday for the release of the 1978 musical ``Grease'' on DVD.

Associated Press

(2) Universal Home Video plans to promote the DVD launch of ``The Scorpion King'' with a Sunset Boulevard event Monday.