Greetings HHSE Friends & Shareholders. We have received some inquiries about our current THEATRICAL plans and strategy for the coming quarter and year.
As many of you know, Hannover House has not yet experienced any direct success with prior theatrical releases. Movies like RACING DREAMS and TURTLE: THE INCREDIBLE JOURNEY may have experienced a nice "bump" in their home video ancillary values after our theatrical release... but the movie TWELVE (with a P&A campaign of almost $2.5-mm!), was a major disaster that added painful debt to the balance sheet and operations. Accordingly, the company has been very hesitant to proceed with theatrical activities, unless a clear path for profitability was present. That said, HHSE is releasing FIVE films to theatres during Q4, each of which has a clear path to profitability from the theatrical exposure.
Here's a quick summary image of these five titles and the release plans as of this date. ON ANY SUNDAY: THE NEXT CHAPTER is a major releasing venture with Redbull Media House, which involves Redbull as financier of the theatrical releasing costs - a strategy that fits their branding goal for a wider theatrical release. BLACK-EYED DOG will have a limited opening (NY, LA and CHI) for awards qualification, before a modest expansion into additional top 40 markets. The foreign language films BORRAR DE LA MEMORIA, ASALTO AL CINE and THE WEATHER STATION have very limited theatrical plans - and very limited financial exposure - so the path to profitability is a short journey for those three specialty releases.
As HHSE moves into 2015 - we will be looking a major openings (over 1,000 theatres) for LEGEND OF BELLE STARR, SHADOW VISION and MOTHER GOOSE: JOURNEY TO UTOPIA all of which will have carefully structured theatrical release patterns tied-into the satisfaction of SVOD and CABLE TV presale agreements. HHSE will open "X" number of screens in "X" number of key markets because such a performance delivers ancillary revenues from SVOD and CABLE that justify the expenditure.
Watch for more news this week on the release venture for ON ANY SUNDAY: THE NEXT CHAPTER.
Q4 will also see the release of EIGHT (8) new titles to DVD and / or Blu-Ray... plus a major consumer outreach for VODwiz - which launches in August, and moves into consumer expansion mode through the next six months!