The V-Cinema and OVA Markets in Japan
In Japan, direct-to-video titles referred to as "Original Video" (オリジナルビデオ) carry different connotations, being a niche product rather than a fallback. Despite having lower budgets than features intended for theater release, Japanese direct-to-video productions are rarely marred by the poor storyline and lower quality production often associated with the DTV market in the US. So-called V-Cinema has more respect from the public, and affection from film directors for the greater creative freedoms the medium allows. DTV releases are subject to fewer content restrictions and less creative dictates than other formats.
In the case of anime, this is called Original Video Animation (OVA or OAV), and their production values usually fall between those of TV shows and movies. They're 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 TV show, such as Tenchi Muyo!, El Hazard, and Read or Die.
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 show. For instance, the DVD release of a TV show might include a bonus episode that was never broadcast as a sales hook.
Read more about this topic: Direct-to-video
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