Due to the poor focus group session mentioned above (which was spoofed in MST3K episode #704, The Incredible Melting Man) and due to the fact that at the same time MST3K: The Movie was set to release the film's distributor, Gramercy Pictures, had the Pamela Anderson "film" Barb Wire ready to go, the movie was denied a standard 2000+ screen run and was instead marked as a "road show picture". The movie was sent from city to city, would play for a few nights in a single theater (often an art house theater or other non-multiplex), and would then move on to another city. Only a few cities each week in the nation would show the movie. Despite this abuse the film did gross $1 million, but did not meet studio estimates. In the end the studio viewed the film as a bomb. The film premiered in April 1996 and ran until August 1996 in its theatrical run, moving from place to place.

As someone who saw the film in a theater (a little art house theater in Orlando, Florida, circa June 1996) let me say that watching an MST3K experiment with a large crowd is quite an experience. The audience applauded at the opening credits (especially when series-creator Joel Hodgson's name appeared) and, despite what people may think about MSTies, most everyone kept their mouths shut during the movie and did not try to outriff Mike and the 'bots.

So, how did Barb Wire effect the distribution of the movie? Gramercy believed that America would rather see the boob-fest that was Pamela Anderson's feature film debut and therefore sank all their advertising budget and distribution funds into pushing that movie down our collective throats. In one of life's little ironies, MST3K: The Movie actually out-performed Barb Wire on some weeks.

MST3K: The Movie came to home video in 1997 on VHS and to DVD in 1998. The MST3K Info Club sold copies of the video and included a free piece of the Deep 13 set with each purchase. As for the DVD, it was a bare-bones release with no special features or deleted scenes and, after a lawsuit in which Universal Studios (parent company of the now-defunct Gramercy) sued the film's licensed DVD distributors for pricing the disc too low, the DVD was discontinued in 2000. Copies of the DVD have been seen at online auctions for prices of $75 or greater as it is believed that the movie will not be re-released in the not-too-distant future and is therefore worthy of such high prices. Before you fork over nearly $100 for a DVD ask yourself if you plan to watch the disc or put it in a shrine.

References:
I was fortunate enough to see the movie in a theater in June 1996. I also picked up the DVD from eBay for a reasonable price.
http://www.mst3kinfo.com/
http://www.imdb.com/

Editor's note: The DVD was eventually re-released in 2008.