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Wednesday, October 2, 2013

Consistent success with Horror-Thrillers builds steady supply.

One of our shareholders wrote an email about two years ago that was amusing at its obviousness but enlightening in its simplicity.  He said: "Figure out what sort of films are making money for HHSE and put out more of those."  This strategy only works when comparing apples-to-apples in terms of product levels (i.e., "direct-to-video", "mid-level theatrical" or "event-level-theatrical").  Without a big supply of P&A funds to make films "mid-level" or larger theatrical releases, most of Hannover's net revenues have been generated by direct-to-video titles over the past two years.  And it should come as no surprise that the horror-thriller titles have been the best performers. 

Hannover has released seven "horror" titles in the past 18-months, every one of which has generated significant revenues and bottom line for the company.  That's why our upcoming release slate includes eight more (already announced) titles, with another eight or more in the queue as pending announcements.  As our success with this genre' has grown, so have the caliber and quality of submissions from producers and agents.  So you can expect to see our core direct-to-video business over the next couple of years continue to have a concentration on this horror-thriller genre. 

That said, the company still feels that the brass-ring of big revenues will come from the mid-level (or higher) caliber releases, which is why the film / video direction the company is pursuing is a three-pronged strategy for 2014 / 2015 - i.e., 2 "core" level direct-to-DVD titles each month, one "mid-level" theatrical every sixty days, and one "major level" title each quarter.  We believe that this release strategy is the proven formula to move the company into the level of "next major independent studio"... a market-spot that has been vacated since the ascension of Lionsgate and Summit into the "billion-dollar revenue club" of major-studio status.

Watch for announcements on new title acquisitions - especially mid-and-event level projects - and corporate ventures over the next few weeks.  Meanwhile, we're lovin' the new film supply that the indie-production community keeps presenting for our DTV home video schedule!


P.S., we appreciate shareholder suggestions, even those that might seem obvious!  That said, no, we cannot make "our own Batman" movie... and no, we don't think "Francis The Talking Mule" is going to resonate with young theatrical audiences.  But if there's a clearly identifiable and addressable market for a concept or project - and a means to deliver sales results in a cost-effective manner - we're definitely willing to discuss!