Welcome to the Hannover House Investor Relations Blog

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!