https://cartoonresearch.com/index.php/p ... neverland/
Originally planned as a straight-to-video feature...it was decided to release...first for a limited run in movie theaters.
Disney’s publicity spin was that the quality of the animation and story were so high that it needed to be released to theaters and that it would be an appropriate way to celebrate the upcoming 50th anniversary of the original film coming in 2003.
In addition but not mentioned, the Walt Disney Company had seen that a theatrical release often significantly increased the sales of the video release because it gave the film more credibility as a “real” film. The film cost less than $25,000,000 to produce.