Tuesday, December 4, 2012
Direct-To-Video "Genre" titles are a great foundation for the HHSE Release Schedule
Some shareholders have asked HH Management about the releasing philosophy for the company, and whether or not we will continue to pursue higher-profile releases (or limit the schedule to direct-to-video level fare). The short answer is "yes," we will continue to develop and pursue major caliber titles... but will rely upon these easily and affordably marketed direct-to-video titles each month to generate nice cash flow and operating margins.
There is not a great upside to the company if we were to only release movies like "COWBOYS VS VAMPIRES" even though this sort of title is the proverbial "no brainer" to decide upon for release (limited investment, but significant sales). There is a definite upside limit to what level of annualized revenues Hannover House (or any supplier) is likely to achieve if the release schedule consisted solely of two or three direct-to-video-titles each month. In order for Hannover House to hit a more impressive revenue and bottom line result, we need to supplement the meat-and-potatoes schedule with two to four "event" level releases each year.
For the Major Studios, an "event level" release would be something like "The Avengers" on 3,800 screens. For an indie company like Hannover House, an "event level" release would be quite a bit more modest in both production scope and release breadth. We could, for instance, get extremely excited (and see material impact) from a 500-print release of a movie such as "The Mothman Chronicles" (which, by the way, has an AMAZING but not-yet-public lead star!). A movie like "Mother Goose!" (which has a visual production design strikingly similar to the new trailer for "OZ: The Great and Powerful") could easily be the company's first 1,000+ print theatrical release (assuming it turns out as well as its potential). Anyway, much more to come.