It's not a TV pilot, it is a web series pilot, that was always the goal. If the pitch for the web series is not successful, it simply becomes a a free 90 minute movie like STOGAM was. Patty is correct about SAG. Also the WGA is not involved with this.
DVD's can not be directly sold, period, no matter the cost. DVD's can be made for as little at $3 depending on how much print you want to use. Still, even if we sold it for $3 directly CBS would come down on us.