Welcome to the Hannover House Investor Relations Blog

Friday, May 29, 2015

HHSE - New York Media Day - Wed., July 8

HHSE is taking over both screening rooms and media interview rooms at NYC's Magno Sound on Wednesday, July 8, as part of a marathon publicity outreach to media. Press and critic screenings will occur for "The Algerian", "Bonobos" and "Dark Awakening" - plus stars and filmmakers will be present for media interviews. And there's more: HHSE will announce its Fall 2015 theatrical slate (previously unannounced theatrical titles each for September, October, November and December!)

Big happenings generate big results. More details to follow.


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UPDATE - Tuesday, June 2, 2015 - Greetings Again! While HHSE ignores the intentional obfuscations of the stock trolls on various chat boards, we did receive questions from legitimate, intelligent and honest shareholders about the Media Day and launch dates for the three above titles. So in respect of those who legitimately want to know the details of mid-summer, theatrical-release strategies, we will elaborate.

First of all, it's important that HHSE shareholders recognize that all three of the above titles are considered "Limited Releases" by the industry.  While BONOBOS and ALGERIAN will hit most of the top 20 markets - and DARK AWAKENING should hit ALL of the top 40-to-65 markets (collectively representing the DMA's covering 80% of the total USA population) - anytime a film is being released on less than 1,000 screens, the major exhibitors consider it a "limited release."

What's the difference between a NATIONAL BREAK and a LIMITED RELEASE?

Well, the obvious answer is number of theatres.  The less obvious answer is MEDIA support, and this is where limited releases become very flexible in the eyes of the exhibitors.

Whereas "DARK AWAKENING" is a big release for an indie studio and Hannover House, it's still NOT a NATIONAL BREAK with major media support.  When a film like "INSIDIOUS 3" is being released by a major studio (on 2,500+ screens), the media campaigns tend to be what some marketers refer to "the shotgun approach" - a wide blast of whatever is available to hit the broadest audience possible... from Missoula, Montana to Miami, Florida.  TV spots, Radio, Internet, Billboards, a major effort to make as much noise as possible to support the 2,500+ screens.  With a LIMITED RELEASE film that may be playing on only ONE screen (for instance) in all of Manhattan (NYC), "the shotgun approach" would be extremely inefficient and illogical.  Ads would be running all over the Tri-State area, with only a small percentage of impressions falling onto those consumers actually residing within 5-miles of the theatre.

An average consumer is unlikely to see much of the HHSE targeted marketing - unless they also happen to fit into our very specific demographics and Zip Code for each film.  How HHSE handles a limited release is to focus on the Zip Codes within a 3-to-5 mile radius of each actual booked theatre location - and then to further refine the focus on the target demo audience.  Movie goers who might be interested in "DARK AWAKENING" are not necessarily the same people likely to be interested in "BONOBOS" due to subject matter.  There are some "national" promotions for these HHSE that are less efficient... for instance, the World Wildlife Fund will be making a national email blast to several million opt-in recipients, suggesting that they go see "BONOBOS" at the theatre... the majority of such recipients will likely not reside within 5-miles of one of the targeted locations... but the awareness from such a promotional outreach is good, and appreciated, and might help with our Netflix response and home video (packaged goods) sales of the item during Q4.  But generally speaking, HHSE works directly with each booked theatre to implement NEIGHBORHOOD SPECIFIC support campaigns on these limited releases.

How does this impact the shuffling of release dates?  Simply put, HHSE follows the lead of our theatre bookers.  When the major theatre chains say, "hey, you'll do a lot better on this week, vs. that other week," we listen and respond.  Why?  Because it's more important to deliver successful results than to stubbornly stick to a release schedule that has competitive obstacles.  When a film is in limited release, there is no bleed-over, where such-and-such location (in the same market) has the film before another location.  Each market tends to be single-screen exclusives (but in the case of "DARK AWAKENING," each market with multiple screens will honor the revised release dates, specifically to avoid any competitive conflicts).

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The New York Media Day being set for Wed., July 8th, opens up tremendous support opportunities that were NOT available to HHSE if such an event were held prior to July 4th weekend.  Why?  Because the major studios and tent-pole releases will "suck all of the air out of the room" prior to July 4th with all the media attention focused on the major releases.  What happens right AFTER that weekend?  Do all the entertainment shows stop broadcasting?  Do the newspaper critics take a holiday?  No... but they do find themselves (during the week after Fourth of July), with time on their hands and limited new releases to cover.  Thus steps-in HHSE and a three-film Media Day on July 8th.  Two critic and press screenings each for DARK AWAKENING, BONOBOS and ALGERIAN, plus cast and filmmakers present for electronic (broadcast) interviews and print reporters.  The HHSE Media Day becomes the primary source of new release stories for the week with the national press.

Someone asked us "why didn't you have the July dates selected before you pencilled in June?"  That's a fair question, and one which returns to the fundamental issue of the fungible nature of limited releases in the eyes of the exhibitors, relative to screen competition during the busiest season of the year.  Although we have tried, the results have been unsuccessful in asking the theatre chains to "help us pick the best date" for this-or-that movie.  Instead, we are forced to arbitrarily pick a date based on our own analysis of competitive factors... then go fishing for screens that meet those dates.  This is when we actually get feedback from the chains, who say, "hey, June 19 sucks for us, please look at July 17."  Why didn't they say July 17 from the start (in this hypothetical scenario)?   Because they don't have enough hours in the day to run release models for every studio asking for date consultaiton on every single release.  When an indie such as HHSE picks a date and the exhibitors try to slot it in (unsuccessfully), that's when the title rises to their attention and response.  Would this change with a 1,000+ theatre title?  Absolutely, because such National Breaks are calendered many months in advance - and supported with "the shotgun" marketing approach that is very date specific.  The big titles are pretty much unmovable - which is why the Limited Releases get shuffled around as space opens and closes at the multiplexes.

How does this impact HHSE revenues?  Generally, moving theatrical release dates is done to find a BETTER date competitively, so it usually means INCREASED Revenues.  In the above scenario (these three titles), the HHSE dates will not change the Q3 / Q4 home video / V.O.D. plans.

From HHSE's standpoint, the modest tweaking of release dates by a few weeks - especially when it has no impact on long-term home video and V.O.D. schedules - is an inconsequential change in the ordinary course of business for all indie studios.  We don't have the biggest titles, or the biggest marketing campaigns out there... so we must be receptive and responsive to the needs of the major theatre chains.  That's how you build (yes, we mean it), a $100-million dollar company... being SMART, being AGGRESSIVE and being RESPONSIVE to customers.

When you look at the emergence of NEW LINE CINEMA, OPEN ROAD FILMS and LIONSGATE, you will see that a company like HANNOVER HOUSE is literally only "one movie away" from being a $100-million dollar company.  Will any of our current titles become our "Blair Witch" - or our "Saw" - or our "Nightmare on Elm Street" that changes the company profoundly?  With the substantially increased quantity of new releases from HHSE and Medallion, the number of chances have markedly improved!

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Thursday, May 28, 2015

Strap-in HHSE Friends - Get Ready for an AMAZING SUMMER!

Dear HHSE Friends - What do you do for an encore, after having a record Q1?  How about a dramatic increase in new releases - both to theatres and to home media?  That's what HHSE and Medallion have in store for Summer, 2015. Three theatrical releases and more than THIRTY (30) titles to home video (both physical goods and video-on-demand), including four hold-over hits from Q1 sales!  There's too many titles to FIT onto a single announcement, but we've gathered a majority of them below, so that our friends and shareholders can be on the lookout for these packages at Walmart, Best Buy, Target and other major USA retailers.

How do you build a $100-million dollar company?  Find out what's working and do a LOT MORE of it!  That's the HHSE / MEDALLION strategy for 2015 and moving forward.  This summer marks a turning point where HHSE distributed titles will be among the most prominent labels at mass merchants... and the significant increase in revenues are occurring without a significant increase in operating costs.  It's a winning formula - so strap in and enjoy the ride!

Thursday, May 21, 2015

Corporate Governance Update

Good Morning HHSE Friends - the time distractions of our Cannes activities, new release shipments and VODWIZ mastering over the past two weeks had a major impact on the timeliness of some corporate housekeeping matters. However, we're pleased to report the following:

1).  Current OTC Status - the attorney's letter is expected today, for posting tonight. This should restore HHSE to Current OTC  status.

2).  Q1 full filing to OTC - also expected to be posted later today.

We do not have as specific of information on the refiling of the revised Form 10 - as we do not have a working history with the new auditors against which to estimate their completion.

Press updates on Cannes, theatricals and productions will be released without prior fanfare.

Wednesday, May 13, 2015

This is why a Soft-Launch is so Crucial - - -

Over the past two weeks since consumers were first made aware of the forthcoming launch of VODWIZ, we have generated over 30,000 clicks to checkout the site, earned over 2,300 FaceBook "likes" and registered hundreds of new VODWIZ users.  Unfortunately, we've also encountered various problems with registration confirmations, order processing and glitch-free digital deliveries.

As stated before, a soft-launch for a major consumer website is crucial for working out such issues before going gangbusters with tonnage of new title listings and millions of consumer impressions.

The technical glitches are being addressed, and will hopefully be resolved in the next few days.  HHSE and VODWIZ are making a presence at the Cannes Film Festival and Marche du Filme this week (and next) with quite a few new supplier studios and rights-licensing agencies ready to sign-up for participation.

On a related note, HHSE and VODWIZ are pleased to announce the appointment of Katherine Mills as VODWIZ STUDIO RELATIONS Manager.  Katherine has been working in a production and mastering capacity at HHSE since last September, and as of this past Monday, has been promoted to this enhanced position as primary contact person for all VODWIZ supplier studios.

Could VODWIZ become the tail that wags-the-dog at HHSE?  Based on the enthusiastic response received from a wide range of suppliers, many would  predict "yes," that VODWIZ could become something very significant!  A few glitches need tweaking and more titles need adding - but the structure is in place for an exciting result...

Monday, May 11, 2015

Q1 for 2015 Sets Record Pace for Record Year at HHSE!

Good Morning HHSE Friends & Shareholders - As predicted back in November, the cumulative benefit of handling a record number of new release titles for DVD, BluRay and Video-On-Demand has already generated a record sales result. Core sales for Q1 2015 (physical video and V.O.D.) increased to $1,264,337 compared to $346,639 for the same quarter in 2014.  Overall revenues for Q1 2015 were impressive at $1,732,208 - and even after adjustments for potential video returns (unsold merchandise from mass merchants), the revenues remained on record pace at $1,397,997.

Cost of sales and operations increased in Q1-2015 as compared to 2014 - due to a larger staff and salaries, as well as due to new accounting procedures for larger hold backs on accrued royalties and deferred income taxes. However, HHSE management feels that the substantial increases in both revenues and bottom line results justifies the modest increase in overhead and operating costs.

Key video titles in Q1 were AMERICAN JUSTICE, GABRIELLE, ASALTO AL CINE and GRAND CHAMPION,  Other items and sources adding significantly to revenues included sales contracts for THE SUMMONING, several video-on-demand agreements with Netflix and ongoing revenues from 20th Century Fox Home Video for TWELVE.

Below are the summary charts for G&A and the Income Statement for Q1, 2015 - with comparison columns for the same reporting quarter in 2014.  The complete financials for Q1, 2015 are included in the company's 10Q report, which will be released later this week onto both the OTC Markets site, as well as through the S.E.C. Edgar site.

Upcoming activities scheduled for HHSE this week and next week include:

*   Filing of 10Q Report;  Filing of Atty's Letter (to restore OTC Current Status);

*   Re-Submission of Form 10-12(g) with new auditor's report and compliance;

*   Cannes Film Festival Announcements / Acquisitions & Alliances;

*   Investor Awareness Campaign - including HHSE as a Featured Company at the Money Show;

*   VODWIZ Technical Tweaking, New Title Additions and expansion of consumer outreach;

*   New Product Shipments for JUNE & JULY street dates;

*   New Staff Additions (VODWIZ and Theatrical Services);

HHSE Managers are grateful and thankful for our many loyal, and long-standing shareholders, who have stayed with the company during the rough growth periods, and remained strong against the three-ring circus of anti-HHSE flippers. The company set a goal to be a successful and growing player in the entertainment & media industries, and HHSE is clearly delivering. These next few days, weeks and months are shaping up to be major turning points for HHSE. If the wise and proven stock prognosticators are correct, the volume and PPS for HHSE could each see new highs.

But there is a challenge. An increase in daily trading volume of the HHSE may be what's required to break past the $.02 barrier that some "flippers" would like to impose as a ceiling. The strategy of these "Rinse-and-Repeat" manipulators is to try to box the stock from not breaking back to it's book value ($.08 to $.12 according to several media industry experts). Why?  Because at $.02, the PPS is easier to jam down to $.01 through relentless blabber on chat boards, which sometimes can demoralize legitimate shareholders into selling at artificially lowered prices. Then, boom, magically the flippers "shut the f**k up" for a few days and allow the stock to bounce back up. "Rinse-and-Repeat" is the phrase that the primary manipulator has used on one of the more popular chat boards to describe their coordinated and illegal scheme.

If HHSE were trading over $.04, it would be very difficult for the flippers to impact the stock with their modest purchasing abilities. So while HHSE now has a Civil Lawsuit drafted for Federal Court - and the FBI and US Attorney's office have a Criminal action against the flippers in motion - one very wise HHSE long had some interesting advice to share: >>>

He said: "The best way to hurt them immediately is to do the opposite of what they say.  If they are screaming 'the sky is falling' yet again, then that means BUY NOW, BUY LARGE.  If they say 'sell, sell, sell' that means HOLD OR ACCUMULATE.  Think of every day as 'opposite day' when reading the clown squad's IHUB posts."

Regarding the HHSE lawsuit, the update is that the US Attorney's office reviewed our complaint and responded this past Thursday with comments and a check list for HHSE to handle. The actual identities of all but one of the chat-room clowns has been verified, and HHSE has hired a private investigator in Malibu to track down locally there the identity of this last party in the civil lawsuit.  Unfortunately, HHSE cannot access the FBI's investigation results for the filing of our Civil lawsuit. But we have been providing them with all of the materials and evidence off various chat boards, from the many Private Messages that have been provided to us, and from emails that some of them (!!) have sent directly to HHSE management - apparently, oblivious to HHSE's voluntary decision to provide access for all company emails to the FBI Investigations team. HHSE will comply with the US Attorney's comments, and then we will authorize the filing of the Civil lawsuit in Federal Court in Arkansas. That's another (potentially) major development for HHSE over the next couple of weeks...

Meanwhile - Q1 Results are EXCITING and proof that the new MEDALLION RELEASING, Multi-Studio Venture under Tom Sims is a successful new component of HHSE's Growth and Emergence as a Major Independent Studio!  Go HHSE!

Friday, May 8, 2015

Pocket-Flyer - Introduction to HHSE for Money Show Attendees!

    HHSE is honored to have so many supportive shareholders - and to see a concerted initiative to help build awareness and a better informed shareholder base. Beginning today, HHSE will be one of the featured companies at the Money Show in Las Vegas, and will be visible through Catalyst Global,  brochures and signage.  HHSE managers wish to thank Graham Financial Services and the other longs who arranged for and paid the funds required for this important initiative of IR support. It is our understanding that these outreach of informative activities will occur over the next few months, with increasing velocity as HHSE achieves its benchmark goals. Stay Tuned!

Revised Form 10 to be Promptly Re-Filed with the S.E.C.

Dear HHSE Friends - As previously reported, HHSE was informed on April 28 that our prior auditor (Terry L. Johnson) had lost his authority to sign-off on Public Company audits.  Accordingly, and without delay, HHSE engaged a new PCAOB firm to handle the 2014 audit project.  No, the new auditor is not Grizzly Adams, or whatever entity the anti-HHSE stock clowns wish it were.

In any event, on Tuesday, HHSE received a call from Dana Brown and Melissa Raminpour of the S.E.C. to discuss the Terry Johnson matter in further detail.  While the audit work that Johnson performed on HHSE was never in question, the revocation of this PCAOB approval suddenly rendered his previously approved financials as "deficient" - solely due to his certification authority, (and having absolutely nothing to do with HHSE's audit or the validity of the Form 10).  A follow-up call to evaluate options for a time extension was suggested, to enable HHSE the opportunity to determine if the new auditing firm would be able to expeditiously review and certify the 2012 and 2013 work already performed.  It was determined today that the 2012 and 2013 audit review would not be ready by Monday (May 11), and that the Form 10 maturation date (of 60-days) may have resulted in the registration becoming "Active" but materially deficient for lack of three-years of PCAOB certified audit confirmation.

HHSE was advised that a Form RW withdrawal of the Form 10-12(g) Registration Statement would prevent the company from potentially becoming a deficient filer... and enable the company to promptly re-file the revised Form 10-12(g) - with the three years of audits - under an Accelerated approval request.

So the bad news is that the Registration Statement will not be active as on Monday, May 11.  The good news is that HHSE will promptly re-file and request accelerated review, since the rest of the Form 10 has been studied.  It's a delay, but not a very long one.

Quite likely, the clown-squad - the "sky is falling" IHUB chorus that has grown so tiresome over these past five years (when their oft-promised disasters never occur) - will gleefully try to convince shareholders that HHSE's decision to follow the sage advice of counsel is actually something nefarious.  Yes, it was a disappointment to find out that five weeks after filing the Form 10, our auditor lost his certification. But it was promptly resolved by hiring a much larger accounting firm.  It was another blow to learn that the 2012 and 2013 results were no longer valid for the same certification reason.  But we dealt with that too... and have a plan for accellerated approval of the revised Form 10-12(g) filing.

Next week:  Q1 results (very good!), HHSE presentation at MONEY SHOW (in Las Vegas), and big CANNES LAUNCH announcement.  Would have been nice if the Form 10 had matured on Monday, but it's only a short delay, and everything else positive is still on the prior schedule!

Watch this space...

Meanwhile, here's the Form RW filed with the S.E.C. today...

Hannover House, Inc.
1428 Chester Street
Springdale, AR  72764
(Commission File No. 000-28723)

May 8, 2015
United States Securities and Exchange Commission
Division of Corporation Finance
100 F Street, N.E.
Washington, D.C. 20549-6010

Attention:              Dana Brown, Legal Department
                                Andrew Mew, Senior Assistant Chief Accountant

                Re:          Hannover House, Inc.
                                Request to Withdraw Registration Statement of Form 10-12(g), (File No. 02202015)
Following the telephonic discussion with your office regarding subsequent events that have impacted our company’s Form 10-12(g) Registration Statement – specifically the requirement for the company to engage a new PCAOB certified auditing firm due to the recent revocation of the certifying authority granted to Terry L. Johnson, C.P.A. – Hannover House, Inc. is unable to comply by May 11 with all required revisions to the Registration Statement, as were specified in your letter of March 26, 2015 and as further clarified in subsequent telephone calls.
Pursuant to Rule 477 promulgated under the Securities Act of 1933, as amended, (the “Securities Act”) Hannover House, Inc., a Wyoming corporation (the “Company”), hereby respectfully requests that the Securities and Exchange Commission (the “Commission”) consent to the withdrawal of the Company’s Registration Statement on Form 10-12(g) (File No. 02202015) together with all exhibits thereto (the “Registration Statement”) as of the date hereof or at the earliest practicable date hereafter. The Company is withdrawing the Registration Statement because the audit report from the new auditing firm is not expected to be ready by May 11.  The Company intends to promptly re-file with a revised Form 10-12(g) report containing the new audit certification (and additional disclosures and compliance instructions). The Form 10-12(g) Registration Statement was originally filed with the Commission on March 11, 2015. The Registration Statement was not declared effective by the Commission under the Act.
Please send copies of any written order granting withdrawal of the Registration Statement that the Commission may issue to the undersigned at the address above on this letter with a copy to the Company’s counsel, James Scheltema, Esq. by email at Jim@SmallCapDevelopment.com or by fax at (850) 912-8529. If you have any questions regarding this letter, please contact the undersigned, Eric F. Parkinson, C.E.O. at (479) 751-4500. Thank you for your assistance with this application for withdrawal.


                                                                                                                                HANNOVER HOUSE, INC.

                                                                                                                                By: /s/ Eric F. Parkinson                                                                                                                                                                     Eric F. Parkinson, C.E.O.

Wednesday, May 6, 2015

Soft Launch of VODWIZ is gaining positive momentum and followers!

Good morning HHSE Friends - There have been requests for an update and commentary on the soft-consumer launch of VODWIZ this past weekend.


1).  REGISTRATION PROBLEMS - We have received about a dozen email complaints from consumers that they were unable to fully "register" for use on the site.  We are working with our services provider to address this issue.

2).  STREAMING PROBLEMS / "GLITCHINESS" - We have received some reports of images freezing on screen, or other glitch errors in streaming of movies.  We are also working with our services provider to address this issue.

3).  NEW MOVIES - With hundreds of films fully delivered to HHSE from partner studios, why aren't all of them posted onto VODWIZ already, is a question received several times.  This answer is compounded:

a).  Registration Issues - we need to smooth out this process before adding tonnage to the website traffic.

b).  Streaming Issues - we need to improve the quality of image / data delivery before adding tonnage to the website traffic.

c).  Marketing Opportunities - we believe that adding new titles on a WEEKLY basis provides a rationale for VODWIZ to reach out to registered users repeatedly to "come back and check out the newly added titles."

4).  FACEBOOK FANS - We have gone from less than 100 FaceBook Fans to over 2,200 "likes" in the first five days of our campaign... and our visibility will increase in pressure over the coming weeks!

Update on Form 10, Audits, Exchange Status, etc...

Good Morning HHSE Friends - Here's a quick recap of some Corporate Housekeeping issues of interest to shareholders.

1).  NEW AUDITOR & 2014 REPORT - As most of you may have already heard, the auditor hired by HHSE to perform the 2012 and 2013 audits (Terry L. Johnson) had his authority to sign-off on future public company audits revoked in mid-April.  HHSE was informed of this development by Mr. Johnson on April 28, when we contacted him for a status on our 2014 report.  Needless to say, this was distressing and unexpected news, and required immediate action on our part.  A new auditing firm (fully licensed and approved), was engaged, and the materials previously provided to Terry L. Johnson over the prior months (four large boxes of sales and payables detail and other audit materials) have been forwarded. Unfortunately, under PCAOB standards, the previously completed verifications are required to be performed yet again by the new auditor, and the expeditious completion of this task has challenged our prior internal schedule to have the 2014 numbers in hand by now.

2).  OTC "LIMITED INFORMATION" STATUS TO BE RESTORED - As a result of not being able to file the 2014 audit report by yesterday, the OTC Pinksheets status for HHSE was temporarily lowered to "Limited Information."  This will be restored in the next day or two as the company will provide the Attorney's Letter for OTC Markets compliance, rather than waiting any more days for the audit report to be delivered.  Maintaining "Fully Current" reporting status is important to our shareholders, and will be maintained while the issues of the new auditor and revised Form 10 are addressed.

3).  FORM 10 STATUS - A call is scheduled for Friday with the S.E.C. to discuss the revisions to the HHSE Form 10 filing, including the change of auditors.  A blog update will be posted after that discussion is completed.

4).  LAS VEGAS MONEY SHOW - We're pleased and honored to report that Hannover House will be a featured company at the "MONEY SHOW" in Las Vegas next week.  Over 10,000 attendees - many of whom represent deep pocketed, long hold investors - will be present.  An update will be posted on the morning of May 12, the first day of this three-day investor conference!


5).  CIVIL LITIGATION - HHSE has verified the actual identities of five of the individuals that have posted knowingly false and damaging attacks against the company and it's managers on IHUB. HHSE is also working with the FBI and the US Attorney's office in their investigation of trading activities that occur in concert with the periodic elevation of attack posts. We have been advised to not publicly disclose any greater detail at this time.


COMMENTARY FROM HHSE - Filing the FORM 10 was a very big deal for the Company, and getting through the audits with Terry Johnson was no walk in the park.  HHSE hired Terry Johnson on Sept. 18, 2014 and it took months to complete the 2012 and 2013 audits.  In retrospect, had we known that the Form 10 would not be ready to file (due to audits) until March 11, 2014 - we obviously would have included 2014 in our plans.  However, waiting for the 2014 numbers would have slowed down the timing of the filing, and waiting was not a desirable strategy for many of our shareholders.

HHSE is committed to completing this process and fully complying with all filing requirements as set forth by the S.E.C. and the applicable rules and regulations.

Meanwhile, we continue to make progress with our core releasing activities (DVD and Bluray shipments - and MEDALLION STUDIOS vendor partners), as well as the quiet launch of VODWIZ and the roll out of summer theatrical releases.  While the auditor issue was an unexpected bump-in-the-road, it's clearly not more than a quickly resolved issue as HHSE forges ahead at ever increasing speed.  We believe that the sum total of all our positive developments will manifest soon in the marketplace.

Saturday, May 2, 2015

The beginning of something MASSIVE... the quiet assault starts today!

Greetings HHSE Friends & Shareholders - Ten indie studios (and one major studio!) have signed up to participate in the HHSE streaming portal: VODWIZ.  Collectively, these suppliers represent almost 4,000 titles that are now available for this new venture - to stream directly to consumers via the internet and to mobile devices. HHSE has been planning this venture for two years, and working quietly, behind-the-scenes to assemble masters, art and digital metadata from our supplier partners.

Approximately 250 titles are fully organized and ready for upload and refreshing to the site, with almost 800 more in process for addition in the coming weeks.  It is our goal to have 2,000+ titles live (on-line for streaming) by late summer - and to get as many of the 4,000+ total titles now available on line by year's end.

How much work does it take to do all of this?  An outrageous amount of labor hours and technical upload - and HHSE is extremely happy with the technical services and expertise we have received to date from our hosting partner, Nanotech Entertainment.  As cash flow from our core business in the physical side (DVD / BluRay) has markedly improved, HHSE is able to add to our staff and infrastructure to better handle the operational needs of this major new division.

A lot of discussion and strategy has occurred regarding HOW to launch this out to consumers.  It has been management's preference (and stated as such) to WAIT for the launch until we can lead-off with the higher profile theatrical titles (including our current major studio participating supplier).   However, the owners of these higher profile titles have expressed their preference to NOT be on-board for the initial consumer launch, as some other, prior Video-On-Demand site launches have met with glitches and problems that have reflected badly onto the studio suppliers.  Certainly, if you look at the title lists that initially launched Netflix, Amazon Streaming and I-Tunes, there's no shame in the current VODWIZ selection.

Accordingly, in order to quietly build our brand, slowly add users and data volume, and to work out any glitches (or to prove that there are none!), VODWIZ has started today (May 2, 2015) with a slow roll-out and quiet consumer outreach campaign.

The initial two weeks of this campaign will be focused on targeted FaceBook ads and social media.  During this time, the current listings will be added to almost daily, with the new release icons being refreshed, and the members receiving notifications that "X" number of titles were added today, as a call-to-action to revisit the site.  After two weeks, VODWIZ will commence an increasingly more aggressive - increasingly more visible - internet advertising and banner campaign - including cross bannering onto high-traffic entertainment sites (e.g., Yahoo! Movies, AOL-Moviefone, Flixster, MSN and sci-fi/horror sites).  

As we cross the threshold of 600 films and 10,000 registered members, (which we believe could occur by July), VODWIZ will begin rotating in the higher-profile, theatrical hits and releases that will correspond to an even more aggressive consumer outreach campaign.  By year's end, the goal is to have more than 100,000 registered users, with 20,000 on the $7.00 monthly subscription plan and the others utilizing the service to an average of $4.00 per month.  If these user levels are achieved, by year's end the monthly gross revenues for the venture could be approaching $500,000.  Bear in mind that Netflix currently services 50-million monthly subscribers at $8 each, for about $4.8-BILLION in gross revenues.  The VODWIZ goal of $5-mm during the first 12-months of operation (which starts today!), is a level that management feels to be realistic and obtainable, if not ultra conservative.

We'll know soon... as people respond to the social media ads and announcements and begin signing up for VODWIZ.  And we'll keep our shareholders updated throughout the process!

If you have a minute, checkout the FaceBook Page (and "Like" it), and sign up for VODWIZ if you're not already registered!


Friday, May 1, 2015

The hits just keep on coming from HHSE & Medallion Releasing!

Happy "May Day" to our HHSE Friends & Shareholders.  Lots of DVD and BluRay products being manufactured and shipped out this month for June New Release and June Modular placements. Here's a couple of highlights of the bigger orders:

THE LAZARUS PAPERS will hit shelves at Walmart, Target and Best Buy.  Great action flick!

AMERICAN  JUSTICE has been extended at Walmart for the Modulars placement (a great achievement for a recent new-release to be "held-over" for up to 18-additional weeks!).

So much more to update on, but HHSE management is on a VODWIZ deadline for the soft-launch that starts tomorrow!  Go HHSE!!