TOONING UP: THE DRAW OF ANIMATED FEATURES

RANDY WEDDINGTON

The theatrical success of several animated features from different studios marks the start of a potential video bonanza for supermarkets.

Late last year, four animated films -- "Antz," "The Rugrats Movie," "A Bug's Life" and "The Prince of Egypt" -- were all competing theatrically, an unprecedented occurrence. This is the result of several studios gearing up their animation divisions to challenge perennial leader Walt Disney Pictures, Burbank, Calif., in hopes of capturing a bigger chunk of this growing market.

"Everybody's trying to get a piece of the animation pie," said Bill Bryant, vice president of sales, grocery and drug, at Ingram Entertainment, La Vergne, Tenn.

These efforts will increase the number of theatrical and direct-to-video releases, providing supermarkets with an ample supply of new titles in one of their most popular video categories. More importantly, it may represent the start of an upward trend in the number of animated-feature releases.

"We do exceptionally well with animated titles compared to live-action," said Clifford Feiock, video coordinator for Nash Finch Co., Minneapolis.

There are a number of reasons for animation's popularity within the supermarket channel. One is marketing adaptability.

"Animated films offer the best opportunity for promotions and merchandising," said Matt Dillon, video director of the Boogaart Retail division of Fleming Cos., Concordia, Kan. "We do a lot of coloring contests and similar promotions tied to animated films," said Matthew Feinstein, vice president of Marbles Entertainment, Los Angeles.

Indeed, coloring contests are standard in supermarket video departments, according to both Feiock and Dillon. "Coloring sheets and other kids' activity pages are great sales tools for cartoon tapes," said another specialist from a medium-size chain. "Children and parents really appreciate handouts."

Animated films also provide good material for in-store displays. "Our department managers really excel at displays for cartoons," said Craig Hill, video specialist at Harps Food Stores, Springdale, Ark. " 'Pocahontas' and 'Anastasia' inspire their artistic talents more than 'Saving Private Ryan' will."

Cross-promotional opportunities in the category are another benefit to retailers. "Almost all of the big animated releases have tie-ins with other products," said Bryant. "Lack of space in supermarkets often makes it hard to use all these, but a rebate deal on other videos, like Disney's recent promotion for 'The Parent Trap,' is ideal for supermarkets."

One problem with cross merchandising, however, is the amount of coordination it requires. "Much of the success of cross promotions depends on vendor support," said Dillon. "We've had great cooperation from General Mills but very little from anyone else."

Animated titles, according to Bryant, can even increase foot traffic and the average ring at the cash register.

"Animation lends itself more toward purchases than rentals," said Kirk Kirkpatrick, vice president of marketing at WaxWorks Video Works, Owensboro, Ky. "The new product is a shot in the arm for both theatrical and video."

The rise in animated titles is being fostered by advanced computer technology. Just as the development of photostatic copying enabled Disney to make the animated "101 Dalmatians" for an earlier generation, computer-generated imaging is now reshaping the way many animated films are made.

"We're seeing a different type of animation now, improved through the use of computers," said Kirkpatrick. "The increased quality translates well to DVD, too."

State-of-the-art techniques are broadening the customer base as well, retailers say.

"Animation has traditionally meant kids," said Kirkpatrick, "but 'Antz' and the other new animated titles have crossed over to young adults and older people as well."

The main reason for robust production, though, is that animation sells -- as evidenced by Buena Vista's results in recent years.

"The Lion King" had domestic theatrical grosses of more than $300 million, and "Aladdin" topped $200 million, with "Toy Story" close behind. Meanwhile, "Beauty and the Beast," "Pocahontas," "Mulan" and "The Hunchback of Notre Dame" each grossed more than $100 million, and "Hercules" fell just shy of that figure.

It's no surprise, then, that other studios are encroaching on Disney's territory, with some degree of success. Of the four major animated features in 1998, only one, "A Bug's Life," was a Disney release. By year's end it had taken in $136 million, outperforming Paramount Pictures' "The Rugrats Movie" (at $88 million) and two DreamWorks SKG releases, "Antz" ($89 million) and "The Prince of Egypt" ($66 million).

Hollywood-based Paramount Pictures has benefited from its association with other divisions of parent company Viacom, New York, including Comedy Central, Nickelodeon and MTV. This year Paramount will release a theatrical feature based on "South Park," an animated series on Comedy Central. Prior to "The Rugrats Movie," a spinoff from the Nickelodeon show, the studio scored with the MTV property "Beavis and Butthead Do America," which grossed $63 million -- at that time a record for a non-Disney animated title.

The animation department of Warner Bros., Burbank, Calif., had a hit with the $90 million "Space Jam," but "Quest for Camelot," its 1998 follow-up, was a disappointment, earning only $23 million at the box office. Up next from Warners is "The Iron Giant," scheduled for a theatrical release this summer. Directed by Brad Bird ("Family Dog") and starring the voices of Harry Connick Jr. and Jennifer Aniston, it's the story of a boy who befriends an alien robot.

The Fox Animation division of 20th Century Fox, Beverly Hills, Calif., performed well with its $58 million-grossing "Anastasia" but lacked a 1998 follow-up.

The company has scheduled a fall theatrical release for "Monkey Bone," from director Henry Selick ("Nightmare Before Christmas," "James and the Giant Peach"). Combining stop-motion photography with live action, the movie depicts a cartoonist, played by Ben Stiller, who is trapped in his dreams.

Another ambitious Fox project, "Planet Ice," directed by Don Bluth ("Secret of NIMH," "An American Tail"), is a futuristic adventure that imagines the Earth destroyed by aliens. It will feature the voices of Matt Damon, Bill Pullman, Drew Barrymore and Nathan Lane.

Next up from DreamWorks SKG, Glendale, Calif., is "El Dorado: City of Gold," set during the 16th century, in which two con artists find a map leading to the fabled city. It features songs by Elton John and the voices of Kenneth Brannagh, Kevin Kline, Armand Assante and Rosie Perez. Also due from DreamWorks is "Spirit," a Western from the horses' point of view.

DreamWorks also plans to team up again with "Antz" animators Pacific Data Images, Palo Alto, Calif., on two films, "Shrek" and "Tusker." The first, from the William Steig book, is about a young ogre who wants to be a knight. It's voiced by Mike Myers, Cameron Diaz, Eddie Murphy and John Lithgow. The second follows an elephant herd on a dangerous journey through Southeast Asia.

Still, Disney's animation team, with crews working in California, Florida and Paris, has by far the most ambitious slate of upcoming features.

"Tarzan," due in July, is Disney's summer theatrical release. Tony Goldwyn voices the adult Tarzan, with Minnie Driver as Jane. Rosie O'Donnell and Glenn Close provide other voices, Phil Collins the music. "Toy Story 2," again animated by Pixar Animation Studios, Richmond, Calif., is scheduled for December. It features Randy Newman's music along with all the voices of the original. Pixar is also working on "Monsters, Inc.," about monsters living under a child's bed. "Fantasia 1999" has become "Fantasia 2000" as production continues on this reworking of a Disney classic, which combines material from the original film with several new animated interpretations of classical music.

Several other Disney films are in various stages of development. "Dinosaur," using both stop-motion and CGI, includes the voices of D.B. Sweeney, Alfre Woodard, Kiefer Sutherland and Julianna Margulies. "Kingdom of the Sun," with songs by Sting and the voices of David Spade, Carla Gugino, Eartha Kitt and Harvey Fierstein, is about a boy who finds a lost Incan city. "Atlantis" is being considered for the studio's first 70mm animated feature since "The Black Cauldron." "Treasure Planet," from "Little Mermaid" animators John Musker and Ron Clements, is an adventure with robots, aliens and space pirates. And "Lilo and Stitch" is about a Hawaiian girl who befriends a fugitive alien "dog."

To this cornucopia of theatrical fare will be added a great deal of direct-to-video animated product. Warner Home Video is releasing an animated version of "The Snow Queen" in February. Universal Studios Home Video, Universal City, Calif., will release "An American Tail 3," as well as "The Land Before Time 7." "The 'Land Before Time' series is becoming a tradition," Bryant noted.

Buena Vista Home Entertainment, Burbank, Calif., will debut at least two animated features on video this year. The first, "Madeline Lost in Paris," is scheduled to coincide with the character's 60th birthday this summer. The second, "Mickey Once Upon a Christmas," continues a program of holiday themes that last year included "Beauty and the Beast." In addition, Buena Vista will re-release the animated "101 Dalmatians" in March.