I don't know what the final format will be, but yes, it'll be a feature length film or, as you say "an actual DVD film". It's still in the "script" stage so don't expect it any time soon. DVD and even Blu Ray may have gone the way of VHS or BetaMax by the time we're done.
More information will be released when available for but now, check out the really barebones website:
http://rougemovie.com
Thank you!