Short answers, pulled from the story.
The first direct-to-video release to go into production was E. Nick: A Legend in His Own Mind, produced in 1984 by CineTel Films and directed by Robert Hegyes. It was never intended for theatrical release.
Direct-to-video refers to releasing a film or television series on home video formats without an initial theatrical release or television premiere. Studios use this route when a film has a low budget, niche appeal, controversial content, or insufficient commercial prospects for a cinema run.
Tiny Toon Adventures: How I Spent My Vacation, released in 1992, was the first feature-length animated film released direct-to-video in the United States. The practice of producing animation specifically for video rather than theaters became widespread in 1994 with The Return of Jafar and The Land Before Time II.
V-Cinema is the generic Japanese term for direct-to-video film releases, originally the name of Toei's product line launched with Crime Hunter in March 1989. The format was inspired by the success of OVAs and gave rise to directors including Takashi Miike, Hideo Nakata, Shinji Aoyama, and Kiyoshi Kurosawa.
Ed Burns' Purple Violets became the first film to premiere exclusively for sale on the iTunes Store in November 2007, remaining exclusive to the platform for one month. It had previously screened at the Tribeca Film Festival in April 2007.
Some direct-to-video genre films featuring a high-profile star can generate well in excess of $50 million revenue worldwide. American Pie Presents: Band Camp sold more than one million copies in a single week, and such films can be produced for as little as $20 million, roughly a third of the average Hollywood theatrical release budget.