Gaiman and McKean worked on the film concepts over the course of two weeks at Jim Henson's family's home, and actual production of the film took seventeen months. Created on a budget of $4 million, the film was originally made as a direct-to-video film, but had a limited theatrical run in the United States on September 30, 2005, resulting in a domestic theatrical gross of $867,000. The film was also screened at the 2005 Sundance Film Festival where it received positive responses. The overall critical reaction to the film was mixed, with critics praising the film's visuals while complaining about the overall story and script.