Greetings HHSE Friends - As previously mentioned, FreeStyle Releasing will be representing upcoming Hannover House theatrical films, including "THE SUMMONING." We are pleased to announced that "BONOBOS: BACK TO THE WILD" and "THE ALGERIAN" have also been added for the sales representation venture, based on the upcoming / qualifying theatrical release schedule for these two new films. "DARK AWAKENING" - also opening at theatres this summer from HHSE - is not eligible for the Netflix Subscription Video-On-Demand placement due to a major pre-sale for the film on SHOWTIME NETWORKS.
For eligible films meeting programming and quality requirements, Hannover House is required to release each to a predetermined number of Top 25 theatrical markets. The value of the licensing fees begins with a significant (6-figure) base fee, plus an overage formula tied into box office performance. For the initial three titles, a valuation of $3-million is considered to be realistic and obtainable - but may vary based upon the actual box office performance that the films will be generating during their release window. From a revenue-reporting standpoint, HHSE will only book the base contract amount for each film until box office overages are known.
While it is possible for Hannover House and Medallion to license films "directly" to Netflix for streaming, the theatrical formula available through FreeStyle is not a structure that's generally available to other independent distributors. Accordingly, HHSE believes that the value of the FreeStyle structure is significantly better for HHSE than a direct "one-off" licensing transaction to Netflix. As more details are approved for release, this blog will be updated.