Welcome to the Hannover House Investor Relations Blog

Wednesday, July 31, 2013

Great progress on the Book / Publishing front for Hannover House

Some great new developments for the publishing side of Hannover House:

1).  eBOOK RELEASES - "One of the Lucky Ones", "Sable Shore" and "Blind Vision" have now been uploaded for eBook availability through Barnes & Noble / Nook and Amazon / Kindle.  As these offerings go "live" to the public, we'll update this blog with the links so that you can check them out!

2).  DISTRIBUTION VENTURE - Hannover House is pleased to announce an agreement for the exclusive distribution of our print book editions to bookstores, schools and libraries through BAKER & TAYLOR BOOKS, Charlotte, NC.  B&T is one of the top three wholesale distributors of books, and a great conduit for Hannover House to reach booksellers.  The exclusivity is limited to book specialty retailers, schools and libraries, as Hannnover House will continue to solicit and sell directly to Mass Merchants, Clubs and internet sites.  This is a great development that has already (today!) started generating orders..!

3).  BARNES & NOBLE SUPPORT - We're happy to announce that the nation's largest book retailer, BARNES & NOBLE has committed to national placements on three upcoming Hannover House book titles:  "ONE OF THE LUCKY ONES" (immediately), "LENNON BERMUDA" (September) and "THE VERDICT" (November).  As a point of reference, Barnes & Noble reports that they sold 22,180 copies of "Blood, Money & Power" by Barr McClellan in 2003, for which "THE VERDICT" is the follow-up book.

4).  LAUNCH EVENT VIDEO - The Nightbird Books event supporting last week's print-edition release of "ONE OF THE LUCKY ONES" sold a record number of books for the store (182 copies in 2-hours).  There's a YouTube video of highlights from the evening available for viewing at:


Looks like BOOKS and eBOOKS will be a much higher percentage of the HHSE revenues for 2013 than in prior years... lots of retail support, plus the new B&T partnership, and eBook placements.  Fingers crossed, and stay tuned!

Tuesday, July 23, 2013

eBook Updates

Hannover House is pleased to announce that Barnes & Noble and Amazon will both be carrying the company's new eBook releases... and on a selected basis, some Hannover House titles will also be available through I-Tunes / I-Books (Apple).  All of the Hannover House eBooks will also be made available through the upcoming NTEK hosted TV Book portal and channel (details to follow).  In order to accommodate placement with BN for their "Nook" platform, the initial three eBooks from Hannover House will be formally available next Tuesday (July 30); these were previously planned for July 23, but this would have jeopardized the support of BN.  Here's to a nice, new (and lightning fast!) revenue stream for HHSE!

Hannover House Ebook Publication Titles & Dates
(Updated July 23, 2013)
E-Book Likely
TITLE Author Date Portals
 One of the Lucky Ones  Brenda Hancock 7/30/2013  BN, Amazon, Indies
 Sable Shore  James Danielson 7/30/2013  BN, Amazon, Indies
 Blind Vision  Vivian Kaplan 7/30/2013  BN, Amazon, Indies
Blood, Money & Power  Barr McClellan 9/10/2013  BN, Amazon, Indies
Lennon Bermuda  Scott Neil, Graham Foster 9/10/2013  BN, Amazon, Itunes, Indies
The Verdict  Barr McClellan 11/5/2013  BN, Amazon, Itunes, Indies

Definitive Answers on JFK Assassination Presented in new Barr McClellan book from Hannover House

"The Verdict: Justice for John Kennedy, Justice for America" reveals specific details of the plot and the players responsible for the assassination of the President John Fitzgerald Kennedy fifty years ago.

(New York, NY)  Hannover House, Inc., (OTC: HHSE), announced the November 5, 2013 publication date of a highly anticipated expose' about the Kennedy assassination.  "The Verdict: Justice for John Kennedy, Justice for America" is author Barr McClellan's sequel to his # 1 national best-seller, "Blood, Money & Power: How LBJ Killed JFK" (Hannover House, Sept., 2003).  Hardcover copies of the new book will available through bookstores, mass merchants, airport gift shops and on-line sellers, with eBook editions available through all major portals.  The hardcover edition carries a $24.95 suggested retail price; eBooks will be offered for $14.95 srp.

Attorney and author Barr McClellan was a partner in the Clark Law Firm in Austin, Texas, which handled a significant portion of the business transactions of former President Lyndon Baines Johnson.  McClellan's 2003 book on the subject exposed documents and testimony in support of a Texas conspiracy to kill President Kennedy for a variety of reasons, including the ascendancy of power and the protection of interests in both criminal and business matters.  "Blood, Money & Power: How LBJ Killed JFK" stunned the world with its precise, factual support of the high-level conspiracy and players. As a national best-seller, the book ignited a maelstrom of media attention and a windfall of supporting evidence and testimony.

Now, as the nation approaches the 50th anniversary of the tragic Kennedy assassination, McClellan presents compelling new evidence in "The Verdict:  Justice for John Kennedy, Justice for America."  This powerful book reveals the motives, the methods and the money that made this assassination plot possible and ultimately successful.  The conclusions are clear and the evidence is abundant:  America wants answers and McClellan provides "The Verdict."

Hannover House will support the book's release with publicity and advertising, including McClellan's appearance on several, national cable-news programs.  Prior television appearances for McClellan include all three major networks (ABC, CBS, NBC), as well as CNN, Fox News, MSNBC, The History Channel and C-Span / Book TV.  McClellan is also the father of former White House Press Secretary, Scott McClellan, and former Food & Drug Administration Director, Mark McClellan.

The new McClellan book will be coming to hardcover and eBook formats on Tuesday, November 5, 2013.  The prior McClellan Kennedy book, "Blood, Money & Power: How LBJ Killed JFK" will also be re-released in hardcover edition at that time, as well as made available for the first time ever onto the various eBook formats.  "Blood, Money & Power..." sold more than 100,000 hardcover edition copies, and reached # 1 best-selling status for Amazon.com, and # 11 ranking on the New York Times best-sellers list.

"The Verdict: Justice for John Kennedy, Justice for America" - Nonfiction, History - by Barr McClellan, 306 pages, hardcover edition, $24.95 srp., ISBN:  978-1-62890-065-1

"The Verdict: Justice for John Kennedy, Justice for America" - Nonfiction, History - by Barr McClellan, e-book edition, $14.95 srp., ISBN 978-1-62890-066-8

McClellan also penned a prescient analysis of economics and outsourcing with his 2009 release of "Made in the USA" (Hannover House, $19.95 srp).

This press release may contain certain forward-looking statements within the meaning of Sections 27A & 21E of the amended Securities and Exchange Acts of 1933-34, which are intended to be covered by the safe harbors created thereby. Although the company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, there can be no assurance that these statements included in this press release will prove accurate.

Monday, July 22, 2013

Is HBO worth paying for... when consumers can also watch movies over "Free TV" broadcast?

For that matter... is one "comedy" completely interchangeable with "any other" comedy movie release?  One would suspect that the answer to such questions is blindingly obvious:  consumers will pay for a better entertainment experience than what might be available "for free." 

Each movie produced is unique unto itself as a product... some are well-made with great stories and casts... others, maybe not so great on any front.

So what do consumers expect to find when they go to HBO on cable, or Netflix for streaming?  Do you think they will be satisfied with Uncle Charlie's camcorder fiasco shot last summer... or do you think they're going to expect a quality film experience for their entertainment dollar?

As intelligent shareholders and investors look at Hannover House (and the myriad of business opportunities the company is developing and exploiting), take notice of Hannover's commitment to quality and / or commercial appeal with every title we produce or acquire.  We're not pumping sewage into our feature film release pipeline... we're putting out films that have assured retail placements with our key accounts - and oftentimes, many of these films also come with legitimate, critical acclaim.  

Yes, it's true, some indie productions are SO BAD that the only way they can get exposure is to post them onto a "free-streaming" website (and there are some such sites).  But where's the consumer traffic?  Where's the competitive threat?  If crud-movies were truly acceptable replacements for quality films, then HBO and Netflix would be out of business.  Anyone who thinks otherwise clearly knows nothing about the entertainment business. 

I realize that these are self-evident observations that any semi-rational person would understand.  But the company sometimes receives email inquiries about subjects that are not setting atop the foundations of basic industry knowledge.  So we address these sorts of questions, too.

Until tomorrow...

Friday, July 19, 2013

Hannover House Pacts with FB Media for North American Release of John Lennon Songs and Book with the Lennon Bermuda Collection

(Hamilton, Bermuda)  Legendary songwriter and performer John Lennon spent his last summer on the island of Bermuda as inspiration for his final two albums, "Double Fantasy" and "Milk and Honey."  Some of Lennon's most beloved songs - and some enlightening new insights into his life and final months - are presented in the Music CD and Book release of "Lennon Bermuda."  The two-CD music collection and 120-page book (and eBook edition) will be released in the United States and Canada by Hannover House (OTC: HHSE) on September 24, 2013, under an exclusive license with FB Media, Ltd.

The Lennon Bermuda products covered under the Hannover House distribution venture include a 2-CD collection (34 tracks), a single CD collection (22-tracks), a 120-page book (and eBook), and a specially packaged collector's edition set.  All of these items will be released to major retailers, book stores, specialty outlets, wholesale clubs and internet sellers beginning September 24, 2013. 

"John Lennon is a legendary songwriter and pop-culture icon," said Eric Parkinson, C.E.O. of Hannover House.  "His name, image and music are world renowned, and we feel that these Lennon Bermuda products have tremendous commercial appeal as we move into the fourth-quarter holiday season.  The single-CD item is attractive for mainstream music retailers such as Wal-Mart, the stand-alone book should perform well with chains such as Barnes & Noble, and the collectors set could be a great gift item for wholesale clubs such as Costco and SAMS.  Overall, we think this is a very exciting and commercial product line."

Additional content information, packaging graphics and product details will be released in the coming weeks as the consumer publicity, advertising and general marketing campaigns for the Lennon Bermuda items are launched.  The following four products will be released by Hannover House under the distribution agreement with FB Media, Ltd.:

$17.95 srp, UPC 7-61450-19802-9

LENNON BERMUDA - Trade Back Book, by Scott Neil and Graham Foster, 120 pages, Non-Fiction, Biography;  $19.95 srp., UPC 7-61450-19803-6; ISBN 978-1-62890-057-6

LENNON BERMUDA - eBook (Neil & Foster), $14.95 srp, ISBN 978-1-62890-058-3

LENNON BERMUDA COLLECTOR'S GIFT PACK (contains CD & Book in special packaging),
$39.95 srp, UPC 7-61450-19804-3   / ISBN 978-62890-059-0.

The Lennon Bermuda recordings were produced by Michael Freisenbruch and Tony Brannon for FB Media, with assistance from a variety of top session and music-recording producers. Artists featured on the LENNON BERMUDA Music CD include YOKO ONO, BRYAN FERRY, MAXI PRIEST, BIGGIE IRIE, RACHEL BROWN, JUDY TZUKE, HEATHER NOVA, McCARTNEY K and fourteen other international music stars as well as Bermuda-based performers. 

The Lennon Bermuda book was written by Scott Neil with original illustrations by Graham Foster. The book chronicles Lennon's summer of 1980 in Bermuda (with son Sean and wife Yoko Ono), with original illustrations and photos, with an abundance of local flavor and stories, including details of Lennon's first discovery of the "Double Fantasy" Orchid in the location that is now the Bermuda Botanical Gardens.

FB Media is also responsible for the organization and promotion of the upcoming Lennon Peace Day Concert, a tribute concert scheduled this year for Saturday, Sept. 21, 2013 in Bermuda.

John Winston Ono Lennon, MBE (born October 9, 1940 – December  8, 1980) was an English musician, singer and songwriter who rose to worldwide fame as a founder member of the Beatles, one of the most commercially successful and critically acclaimed acts in the history of popular music. With fellow Beatles member Paul McCartney, he formed a songwriting partnership that resulted in U.S.A. record sales of more than 177-million units (as certified by the Recording Industry Association of America).

Born and raised in Liverpool, Lennon's early music activities eventually evolved into the Beatles in 1960.  After a meteoric decade, the Beatles began to disband and Lennon embarked on a successful solo career.  Lennon solo albums include John Lennon/Plastic Ono Band and Imagine, and iconic songs such as "Give Peace A Chance", "Imagine", "Woman" and "Watching The Wheels".  After taking five years away from the spotlight to raise his infant son Sean with wife Yoko Ono, Lennon returned in 1980 with an acclaimed new album Double Fantasy.  Just three weeks after this album's release, Lennon was murdered in New York City in an infamous and tragic shooting.

Lennon's solo album sales in the United States exceed 14 million units, and as writer, co-writer or performer, he is responsible for 25 number-one singles on the US Hot 100 chart. He was posthumously inducted into the Songwriters Hall of Fame in 1987 and into the Rock and roll Hall of Fame in 1994.

HANNOVER HOUSE was formed in 1993 as a U.S. Book Publisher, adding DVD products in 2002, music CDs in 2004 and theatrical releasing activities in 2008.  The company sells to most major retailers and wholesalers of entertainment products in North America, with Wal-Mart, Best Buy, Netflix, Redbox and Barnes & Noble collectively representing over 80% of annual consumer product revenues.  The principal offices for Hannover House are located in Northwest Arkansas, conveniently near the world headquarters for Wal-Mart Stores, Inc., and major distribution centers.  For more information on Hannover House, view the filings at: www.OTCMarkets.com under trading symbol HHSE.
This press release may contain certain forward-looking statements within the meaning of Sections 27A & 21E of the amended Securities and Exchange Acts of 1933-34, which are intended to be covered by the safe harbors created thereby. Although the company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, there can be no assurance that these statements included in this press release will prove accurate.


Razorback Football Program - Video now COMPLETED!

More congratulations on production tasks today... Director / Editor JOSH IRWIN and his post-production team finished the edit and graphics early this morning on the "Arkansas Razorbacks Football 2013" video project, for release August 13 to Wal-Mart and other major retailers.  This video is the first in a planned series of college-football programs targeting S.E.C. teams and other powerhouse college football programs (in conjunction with IMG College Sports and the various university Athletic Media Relations departments). 

Pictured Above:  Producer ERIC PARKINSON, Arkansas Football Coach BRET BIELEMA, and host and writer BO MATTINGLY.

Above:  Parkinson discusses lighting issues with one of the camera operators.

Above: Media Roundtable "Sports VIP" Experts discuss predictions for the year as the Hannover House crew tapes from three positions, including the company's dolly tracking set-up.

Congrats to "Valley Inn" - third week of principal photography

HHSE extends a hearty Congratulations to director KIM SWINK and producers KERRI ELDER and KENN WOODARD on completing your third week of principal photography on the "Valley Inn" feature film.  Hannover House visited the set this week (and was happy to also see our equipment & trucks!) and found the performance being filmed from lead actress Joey Lauren Adams to be powerful and heartfelt... One more week to go, so keep up the good work! 

As far as the effect on the rest of us back at the office, we're telling the staff and visitors that the heavy truck traffic, generator, star wagons and more will lighten up in about a week, too!  Part of the collateral impact from making a feature film is a ton of people, cars, trucks and equipment for about four weeks at a time! 


A terrific album & book: Highly Recommended...

Watch for a major new product announcement this afternoon from Hannover House... an instant music industry top-selling CD - and a must-own book - both in time for the holiday season and mass merchant and club placements.   This will be an exciting day for the company!

Thursday, July 18, 2013

Share Structure update...

HH Management spoke with the Wyoming SOS office this afternoon, regarding the crazy delays in lowering the share-count to the board approved level of 600-mm.  Back in January, HH sent a form with board resolution and a credit card authorization for the $50 cost to modify our corporate records.  Did not hear anything back for months, until some shareholders noticed that it still had not been updated.  So we contacted the SOS office and they said that they could not accept a credit card payment for this sort of amendment, and needed a company check with the name of the company as the account holder.  So we sent them a $50 check.  Did not hear anything back until today, when the same shareholders pointed out that the share structure STILL had not changed.  So we looked at the bank account, and the check to Wyoming SOS had not been presented.  So we called them, and they said that we failed to include the original paperwork (which was sent in January) with the check (sent in May), and that's why it hadn't been processed.  SO, we're sending a new print out of the board resolution and form, and a new check via Fed-ex.

Anyone using this matter as the basis to sell is being VERY POORLY advised.  See image of original documents file in January below.

Tuesday, July 16, 2013

VODwiz Roku (IPTV Channel) and V.O.D. Portal Site

UPDATE, JULY 16 - Hannover House and Nanotech are in the final phase of the pre-launch operational steps to launch both the Roku (Internet Protocol TV) Channel and the stand-alone Video-on-Demand portals (collectively known as the VODwiz venture).  The initial beta-test will start with titles exclusively from the Hannover House library until logistics are tweaked and capacity issues measured... after which point in time, the titles from our partner supplier studios will be announced and added.  Watch this blog over the new few days for instructions on how friends and shareholders of HHSE can access the Roku-enabled IPTV channel in order to stream titles through VODwiz and to provide thoughts and comments back to the Company prior to the official consumer launch.  For the beta-testing stage, the Roku channel will post first... then days later, the V.O.D. website will be published.  Exciting times, indeed!

College Football Madness... just a few weeks away!

Yes, Sports Fans... it's "that time of year" coming at us quickly... the launch of the College Football Season!  Hannover House is proud to have partnered with IMG College Sports (and the University of Arkansas Athletic Department) to present the first in a planned series of S.E.C. and top college team pre-season football videos.  The Arkansas Razorbacks Football 2013 DVD will be launched in mid-August with premium in-store placement at Wal-Mart Supercenters and Hometown Markets, including checkout aisle displayers at many locations (see display design below).  With print-edition team guides selling tens-of-thousands of copies each year... there's a building enthusiasm that the same concept transferred to DVD will be popular with consumers.  As the fans down in Wal-Mart-land like to cheer, "GO HOGS!"

ARKANSAS RAZORBACK FOOTBALL 2013 - 93 Mins., Color, Stereo, $14.95 srp

Wednesday, July 10, 2013

VODwiz Emerging as Indie Film Powerhouse

News is breaking this week (and next) about exciting new developments and supplier partners for VODwiz, the indie studio Video-On-Demand Wizard site from Hannover House (and Nanotech Entertainment).  The logo before your eyes is poised to become a brand-name icon... and you were there first!  We extend thanks to all of those "shareholders of vision,", who have the wisdom and ability to see both the present moment as well as into the near-term future.  Go HHSE!

Tuesday, July 9, 2013

From Holocaust Survivor... to French Resistance Fighter... "ONE OF THE LUCKY ONES" is an incredible and true story.

NPR's Kyle Kellams (KUAF-Radio) conducted an in-depth (and moving) interview with World War II survivor Nicole Holland and her daughter and co-author Brenda Hancock, which aired on regional radio stations throughout Arkansas yesterday.  Excerpts from this interview will be edited for national NPR placement in support of their new book "ONE OF THE LUCKY ONES," which will be in bookstores July 23rd.  If you'd like to hear the interview, click on the link below to KUAF Radio.  The interview is contained within the Ozarks At Large story from Monday, July 8th, and begins at 22-minutes into yesterday's program.


Monday, July 8, 2013

A Brave New Media World...

Although it predates my time, I still recall my father’s stories of when Television launched in the early 1950’s, and replaced radio as the medium for mass entertainment.  This sea-wave of change created great turmoil in the advertising worlds, but within the entertainment industries, the Radio Giants quickly adapted to become the Television Giants (ABC, CBS, NBC).  And while the transition from Black & White to COLOR TV was seismic in the eyes of consumers, again, the existing “major media players” remained the powerhouses controlling TV entertainment and the lion’s share of media revenues.

It wasn’t until the 1980’s – when cable TV began to emerge – that new media giants were born.  Then, just a few years later, the emerging home video industry spawned an explosion of new media companies… leading to today’s transformative video-on-demand platform that is finally enabling indie studios to compete one-on-one with 100-year old media giants.  VODwiz and the associated VODwiz IPTV Channel are the Hannover House windows directly to hundreds-of-millions of consumers… direct delivery to consumers of our movies (and titles from many other suppliers), with no manufacturing costs, no shipping, no middle-man fees and no time-delays for payment.  Watch “what you want, when you want it” is no longer a slogan, but a reality that VODwiz is making possible.

So what’s next?  For Hannover House (and our technology partner NanoTech Entertainment), we think that “4k TV” is the next transformative media platform… a high definition picture so clear and detailed that it makes today’s HD screens feel like a Black-and-White relic.  If you haven’t had a chance to see a 4K image, you’ll have to accept our observation that most people’s jaws literally drop open in awe!

Parallel paths will be pursued for the launch of 4k in America.  An effort to assemble and create 4k programming needs to occur hand-in-hand with the retail placement of 4k players and screens.  Hannover House is already taking active steps on both fronts – with top tier titles set for 4k remastering and VODwiz studio partners being pursued for additional 4k titles (on the programming front), with hardware and package configurations through NanoTech set for mass merchandiser presentations and 2013 retail availability.  It’s like the launch of the Sony Walkman, on mega-High-Def-steroids.  Very exciting, very cutting-edge, and HHSE is well ahead of competitors on this pioneering front.

On other matters, some shareholders have asked for more details on the eBook “BookTV” format launch – which deserves a lengthy blog on its own.  But for brevity, we’ll pose a hypothetical question: 

Do you think a 19-year-old college student is going to prefer to pay $99 for the purchase of a seven-pound textbook to lug around all semester – or $19.95 for the same “information” delivered digitally to their iPad or mobile device?  What if that digital version also contained active links to reference websites, video clips and expert demonstrations?  Which is the better, more thorough, more convenient (and less expensive) way to deliver textbooks or entertainment books (for that matter)? 

The textbook industry in America is a $10-billion annual market… the HHSE / NTEK Book-TV format makes textbooks better and less costly… both indicators of a terrific opportunity.  Sure, book wholesalers and even campus book stores will be threatened by this improvement in textbook delivery, but it’s a brave new media world.  Adapt and thrive – or ignore the coming wave and perish.  HHSE is very excited about this moment in time, and our position and direction in the digital-entertainment and digital-information age.

ERIC PARKINSON, C.E.O. Hannover House

Wednesday, July 3, 2013

Tax Programs Spark Arkansas Film Production

As the only company in N.W. Arkansas with a full-service Grip & Electric truck and equipment package for motion picture production, Hannover House has enjoyed a spike in demand recently... sparked by the newly enhanced Motion Picture Tax Incentives for Arkansas-based productions.  Today is the first day of principal photography for "VALLEY INN" - just days after the completion of "THE RECRUIT" and a few weeks after the wrap of  "GREATER" (all of which utilized Hannover House production services equipment).  When HHSE shareholders ask what is meant when we describe ourselves as a "full-service" entertainment company, we mean that (like Paramount or Sony Pictures), we have the full range of services and capabilities (from the physical production of films through the actual distribution of entertainment programming through all major media channels, without requiring third party suppliers or service providers).  Just FYI... stay tuned...

Tuesday, July 2, 2013

OMG! NanoTech and VODwiz are AMAZING! (beta-test mode)

We just watched a beta-test streaming of a Hannover House movie from the Nanotech hosted VODwiz IPTV Channel.  What an impressive and inspiring experience!  The picture and sound quality were superb, the streaming was uninterrupted and to see the VODwiz LOGO on the Roku home page next to NETFLIX really underscores the vast potential that this channel and VOD streaming site pose:  thousands of titles (most which are NOT available through other VOD portals) will be available to consumers to watch on a pay-per-transaction basis (at competitive or better pricing models than Amazon, VUDU, HULU, etc...). 

It felt like the first time that the "Cable News Network" (CNN) was delivered on cable 30 years ago... or the first time that the Yahoo! site was posted to the internet in the early 1990's.  The VODwiz experience looks and feels MONUMENTAL!  Thanks to the technical wizards at Nanotech Entertainment for bringing to life our vision of a vast library of movies for streaming directly to homes and to mobile viewing devices.  The site is still in the beta-stage at present, but we can see the "live" date approaching soon!

Monday, July 1, 2013

Shareholder questions about pricing tiers and operations...

Hannover managers have received a variety of questions from shareholders regarding the Company's policy on tiered-pricing structures for key accounts, and how this corresponds to industry practices and / or fair-trade rules.  So here's the short answer to an otherwise complex, if not mind-numbing, pricing policy.

For DVD's and Blu-Ray units, "list" wholesale pricing by category is as follows:

a).  Direct Retail purchasers:  45% off suggested retail;
b).  Two-Step Wholesalers for Schools & Libraries:  50% off suggested retail;
c).  Two-Step Wholesalers providing "rental ready" or stickered products:  55% off suggested retail;
d).  Internet Sellers purchasing less than $20,000 per year:  50% off suggested retail;
e).  Internet Sellers purchasing more than $20,000 per year:  55% off suggested retail;
f).  Subscription outlets (e.g., Netflix):  60% off suggested retail;
g).  Mass Merchandisers requiring "retail ready" and purchasing $500,000 or more per year (e.g. Walmart):  65% off suggested retail;
h).  Kiosk retailers purchasing $250,000 or more per year, and not requiring full packaging (e.g. Redbox):  75% off suggested retail;

The above discount structures are comparable to all major home video suppliers / indie studios.  From a practical sense, how might this look on a specific title basis?  Let's use ZOMBIE WARZ as an example.

Approx Avg. Percent
Units Wholesale Sub-Total Of Total
Direct Retail Buyers                  150  $             8.22  $             1,233 0.48%
Two Step Libraries                  400  $             7.48  $             2,990 1.16%
Two Step Rental Ready                  600  $             6.73  $             4,037 1.56%
Internet (Small Accts)                  100  $             7.48  $                 748 0.29%
Internet (Large Accts)                  500  $             6.73  $             3,364 1.30%
Subscription Units                  400  $             5.98  $             2,392 0.93%
Mass Merchants            25,000  $             5.25  $        131,250 50.77%
Kiosks            30,000  $             3.75  $        112,500 43.52%
           57,150  $        258,513

Clearly, in this particular scenario, a mass merchant (such as Walmart) and a Kiosk outlet (such as Redbox) comprise 94% of the total revenue streams.  Other items - such as "Toys in the Attic" which has been especially popular with Internet sellers, as well as with Schools and Libraries - has a revenue model that's more evenly spread away from mass merchants and kiosks. 

From the standpoint of rationalizing the different pricing for different categories of purchasers, it's most easily represented with Redbox.  The first photo below shows a partial shipment of 18,000 "DVD discs only" of "ZOMBIE WARZ" for Redbox.  The second photos shows a ROW OF PALLETS that were required to ship the same quantity of units of "PINK SKIES" for WalMart.  Clearly, from a standpoint of space, weight and freight, it's significantly cheaper to ship "discs only" than to ship fully packaged DVDs.  Additionally, the savings from not having to create four-color wrap inserts, plastic shell cases, security EAS stickers, top spines and shrink-wrap, add to the savings enjoyed on a kiosk sale vs. a standard mass merchant retailer sale.  Of course, with Video-On-Demand, even the disc manufacturing and freight costs are eliminated!  But that's the subject of a blog for another day.