Oh Boy, what an interesting dilemma!!

So - even after a significant re-cut and re-mix, the MPAA Film Ratings board will still NOT issue an "R" rating for the film!  This poses some interesting questions, obstacles and opportunities...

* Will horror fans flock to see a watered-down version... or will they wait for an unrated home video release?

* Will indie theatres (non-chains) agree to book the unrated version... or will they also require the "R" rating that Regal, Cinemark and AMC prefer?

* Will the film's struggles to get an "R" rating make it more visible and desirable to the horror market?

So many questions, so little time... maybe the Ghost of Bloodfeast Past will provide a vision?!?

Stay Tuned....

VODWIZ presents: Three Steps to a POWERFUL Marketing Angle & Position

Greetings HHSE Shareholders, Friends & Followers - As the home-entertainment world continues to evolve and mature, we find ourselves in an interesting position with our VODWIZ streaming portal.  As originally envisioned several years ago, VODWIZ has been structured with the support of nearly all major independent film companies, as a "one-stop" destination site for independent films.  As the venture grew, we found that three major studio labels were willing to "give VODWIZ a try" by offering an assortment of higher-end theatrical titles... so the venture was becoming MORE than a site solely for lesser-known, independent movies.

As we prepared for the launch of VODWIZ, we discovered that the cost for HHSE to build out the hosting, delivery and customer-service infrastructure was enormous (well over $1-mm), and that it was prohibitive to try to finance this with internal resources... and unattractive as a vehicle for borrowing (as a start-up streaming division with no revenue history).  So, when the opportunity to have hosting and operations handled by Nanotech arrived, we felt that this was a good solution to defraying these significant infrastructure costs.  

Unfortunately, launching via Nanotech did not work to either company's satisfaction.  HHSE supplier partners wanted to see the site fully functional before opening the floodgates to 1000's of films... but Nanotech wanted a substantial initial title count before committing more resources to the venture. Ultimately, after losing several years of momentum, Nanotech and HHSE/VODWIZ parted ways. We wish Nanotech well as they pursue the UltraFlix strategy of offering 4k format programming for streaming.

For the past year, VODWIZ was working to satisfy some benchmarks required for Cinedigm to act as the host and operational partner for the venture.  However, the cost-structure for Cinedigm's involvement was impeding enthusiasm from some of the HHSE-VODWIZ supplier studios.

So, what's happening with VODWIZ now?  As described last week, VODWIZ has now partnered with Amazon Digital Services for hosting, operations, payment processing and customer service of all activities.  This is being done without prohibitive benchmark requirements and at a fraction of the costs presented through the prior operational structures.  Better yet, the massive data and streaming capacity available through Amazon's multitude of regionally-based servers, has opened up two new "channels" (so to speak) for VODWIZ.  The VODWIZ site now being assembled, prepared and uploaded will feature THREE main categories of programming on the home-page menu:

WATCH - LEARN - PLAY

WATCH - menu link will open to the traditional VODWIZ assortment of passive-viewing programing:  thousands of feature films and television episodes, primarily from indie studios, will be available for viewing on both a transactional basis, or a subscription basis. This is the model that VODWIZ has planned from initial conception several years ago.

LEARN - this menu link is a new twist to the Video-On-Demand streaming market.  With an abundant supply of educational programming now available, the "LEARN" menu of VODWIZ can offer a wide range of subjects and levels.  Art, English & Composition, Foreign Languages, History, Math, Science, Social-Sciences and many more subjects and achievement levels (from beginner to advanced levels).  Most of these subject programs will offer interactive "quizzes" so that the user can track their achievement goals.

PLAY - VODWIZ will be offering a significant menu of single-player, interactive and group-play VideoGames under the PLAY menu option.  Amazon's large storage capacity and data delivery capabilities make the gaming / PLAY / option an important and exciting new component of the VODWIZ venture.

USER OPTIONS - VODWIZ will offer programming under two models:  Pay-Per-Transaction (starting at only $.99 per program, and increasing based upon studio rental models), and Monthly Subscription  Model (monthly plans for each category, and Premium Plans for LEARN & PLAY as described below).

The Premium Subscription Model will enable up to five (5) individual users per subscription (so that "Billy, Jr." can have his own login-access).  Parents can "limit" the access granted to their kids to wide range of restrictions (e.g., no "R" rated movies, no Violent Video Games, only 4-hours per day, etc...). Even better, parents can create a performance-based rewards model for the kids, by activating the Achievement Points option under the LEARN menu:  passing grades on the on-line quizzes generate access points to enable Billy, Jr. to watch movies or play video games!  With kids spending more-and-more time in front of electronic media today, having a mechanism to incentivize taking on-line classes to earn access to video games and movies is a twist to VODWIZ that we feel families will embrace.

Management is still working on the pricing models for the various Subscription options.  However, we are attempting to work out a $7-per-month model for "watch" only, and a $10-per-month "premium model" (which allows for multiple users, limitations as well as achievement awards access).  Our initial (first year) target is to have 100,000 subscription customers, averaged at $8.50 per month - for annualized gross revenues of $10.2-million.  The operational system we are building with Amazon will accommodate data servicing for up to 50-million monthly subscriptions, should the venture prove to be widely popular!

WATCH HERE FOR MORE VODWIZ UPDATES EACH WEEK!

HHSE Updates - Friday, August 18, 2017

Greetings HHSE Friends & Followers - Below are a few updates as requested by shareholders.

1).  MERGER UPDATE - The stock-for-stock swap, as originally structured back in March, placed a value on the Crimson Forest assets side which ultimately could not be reasonably supported by independent valuations. Accordingly, the ratio of stock for HHSE shareholders under the Crimson merger will need to be adjusted in favor of HHSE shareholders maintaining a larger percentage of the combined stock issued - and therefore, a higher premium-to-market formula. These Crimson Forest asset valuation issues impacted their balance sheets as well as the ongoing auditing process, but now seem to be heading towards a final resolution in the next few days. It is likely (but not assured) that the Newco post-merger company will be branded under Crimson Forest World Media, Inc., symbol CFWM.

2).  LEGAL UPDATES - Settlement in principal has been made with the producers of "UNION BOUND" through mutual legal counselors.  Settlement also seems imminent (according to HHSE counsel) in the XVIII matter; meanwhile, in anticipation of resolution and settlement, counsel for XVIII has extended the time for HHSE to file a response until the end of August. No other legal matters represent a material issue impacting the company outside of the ordinary course of business.

3).  NEW RELEASE ACTIVITIES - No formal theatrical re-launch date has been set for "BLOODFEAST" until the film receives the MPAA "R" rating (currently under appeal, after two rounds of editing).  There are THREE significant theatrical releases from HHSE for Q4, however, in respect of the merger activities and co-branding with other distribution partners, these titles have not yet been formally announced.  The first is opening in theatres Oct. 6 (so announcement needs to be done very soon).  The second release is November 3 and the final release of these three is Dec. 1 - all are significant level theatrical openings.  On the home video front, HHSE withheld / delayed the street dates to five titles that would otherwise have hit the video market during Q2 - and three additional titles that were slated for home video release during Q3.  These titles will begin hitting the home video, V.O.D. and Electronic / Digital platforms in Q4 and Q1 (2018).

4). NEW VODWIZ PARTNERSHIP - We are pleased, honored and excited to announce a new partnership with Amazon Digital to host the VODWIZ streaming platform - which is being tailored to fit the infrastructure of the Amazon Prime operations.  This major development has breathed a hurricane of new life into VODWIZ, so watch for updates on this venture beginning next week...