http://www.geekmonthly.com/news/2006/12/28/galactica-direct-to-video-movie-set-to-launch/

Despite declining ratings for Battlestar Galactica on SciFi Channel, nearly universal critical acclaim along with robust DVD sales have led Universal Home Video to consider greenlighting a Battlestar Galactica direct-to-video telefilm, which will presumably air on The SciFi Channel, after debuting on home video, sources tell Geek. If it goes forward, the two hour telefilm will shoot in March during the series hiatus and prior to the commencement of production on the series fourth season in June. While there is no story for the telefilm at present, plans are afoot to come up with a screenplay that doesn’t step on existing continuity for the series, but utilizes most of its existing sets. There is also speculation the telefilm will somehow tie into the mythology for the Galactica spin-off series, Caprica, which has not been officially greenlit by SciFi Channel.

http://www.geekmonthly.com/news/2006/12/28/galactica-direct-to-video-movie-set-to-launch/

Depending on the exact wording of the "rights" agreement between Universal and Larson, they may need his agreement before doing a straight-to-DVD venture. Universal has the TV rights, Larson has the theatrical rights. DVDs were not even invented at the time so, it's not quite certain how those "other mediums" might have been handled.

As long as the Tell-movie is not intended for the big screen, larson should have little to say on the subject.

In my most profound and personal, (aka meaningless) opinion.

Well they are going to pay him reguardless, so I doubt he cares.