Monday, November 6, 2017

Battlecreek Theatrical Launch - meeting and exceeding our ancillary commitments!

Greetings HHSE Friends & Followers - Friday (Nov. 3), marked the launch of BATTLECREEK into  27 theatres in 18 different markets across the USA.

Some shareholders have expressed the need for a clarification blog as to why HHSE has released BATTLECREEK to only 27 theatres and an explanation of the manner pursued - in hopes that this information will illuminate the overall ancillary business model for those who are unfamiliar with the film industry.

What is the rationale for doing a limited theatrical release with limited advertising support? Isn't that a guarantee that a film will not hit a good box office number?

Yes, that's correct. Perhaps blindingly obvious to those who understand our strategy.  If our 27 theatres playing BATTLECREEK had SOLD OUT EVERY SEAT FOR EVERY SHOWTIME this past weekend, we might have grossed about $200,000 - because unlike a film such as THOR which played in large auditoriums, smaller indie releases are usually in 60-to-90 seat auditoriums, and often "split" (shared auditorium) with another indie release. But we didn't sell out all of our shows and we didn't hit $200,000. We generated about $30,000 - and will likely finish the first week with about $45,000 in box office gross.

So, why spend $35,000 in "hard costs" plus $15,000 in "deferred fees" in pursuit of only $45,000 in total box office grosses (that will "settle" out after the theatres keep their share to about $20,000 back to HHSE)? The math from box office returns alone does not seem sustainable. That's correct. It's not a logical venture until you see the massive impact this sort of theatrical release delivers for all other ancillary revenue streams.

Our goal with BATTLECREEK was to enhance the visibility and credibility of the film so that we could MAXIMIZE overall revenues for HHSE.  By opening the film in "at least 8-of the top 25 largest markets" we qualified the film for NATIONAL TV coverage - elevated its stature for home video - positioned the film for a lucrative Netflix contract - qualified the film for a Redbox kiosk placement - and legitimized the film for international markets. From a modest investment, we reap major returns.

How major? Well - based on video preorders already received from Walmart, Target, Best Buy, K-Mart and Family Video - BATTLECREEK will be the largest new release video shipment since 20th  Century Fox Home Video shipped over 250,000 units of "TWELVE" for HHSE back in January, 2011. Because of what happened THIS WEEKEND with BATTLECREEK in theatres, HHSE will have our biggest December ever.

Will HHSE ever have a movie that has more significant box office potential? Absolutely - in fact,,we have solid indications that our Dec. 1 release of DAISY WINTERS could have that special "spark" with holiday movie audiences. If it does, great. If it does not, still great, because we are spending theatrical funds conservatively and  in a targeted manner so that we are NOT dependent on box office magic to thrive. Meanwhile, national TV audiences have ALREADY seen feature stories on BATTLECREEK on ACCESS HOLLYWOOD, ENTERTAINMENT TONIGHT and EXTRA.  Tomorrow morning, ALISON EASTWOOD is slated for FOX AND FRIENDS and HOME AND FAMILY (Hallmark Channel)... major national TV placements that would NOT occur for a "direct-to-video" release... but are available for theatrical titles... and ironically DRIVE the home video demand.

Successfully releasing independent films is a strategy and process involving multiple revenues streams and steps to achieve the best, bottom-line result.  We are happy with the launch of BATTLECREEK, and know that our year-end financials will demonstrate the validity of this strategy.


OPENING NIGHT Screening event was open-to-the-public at the Laemmle's Music Hall in Beverly Hills, where the film has a one-week engagement.

Director ALISON EASTWOOD answers audience questions after the Beverly Hills screening.

In addition to National TV shows, Alison Eastwood also appeared last week on the local NYC program "GOOD DAY NY" and on the L.A. based afternoon news for KABC-TV.

Alison taped her BATTLECREEK segement for Hallmark's HOME AND FAMILY which airs on Monday, Nov. 6, nationwide.