I'm sure this movie was intended to be released in theaters, but it wasn't. Not really. Not to any significant degree.
Does that mean it is considered by Hollywood to be a failure?
It was released in theaters five of them in my city alone
shareI can't speak for this film but answering your title question then it's a no, not all VOD movies are considered failures.
A lot depends on the budget and original intentions for the movies distribution.
A relatively lower budget film can avoid the cost of a cinema release by going straight to VOD and disc. There's a much wider audience these days on those formats as cinema is expensive and there's the convenience of VOD/disc. People who use those formats are more likely to see a film like this (especially with a big name) at home, rather than make a trip out to see it. A big name attached will also mean greater interest from VOD companies, which means a bigger pay out to the film makers (look at Adam Sandler and what he got paid for exclusivity).
Under the right circumstances a film can be more profitable ignoring cinema (and it's costs) and going straight to VOD.
Not sure why they release it on VOD and then the theaters. It can be torrented almost straightaway.
It's that man again!!