Greetings to all HHSE Friends & Followers on this pre-Thanksgiving Wednesday!
As we reflect back on the past year, and our current situation, we find much to be thankful for. Some business ventures don't always work out as planned, but circumstances keep working out for the better. The results of this past year generated some definitive conclusions:
1). COMMERCIAL? We think it's safe to say that U.S. Theatrical and Video audiences are not anxiously awaiting the next "Mandarin-language" action film. Despite big production values and big China box office results, the USA theatres and video retailers cannot get traction with films such as "Shock Wave" and "Extraordinary Mission."
2). GOOD PRODUCT SELLS - U.S. Theatrical Exhibitors and Video Retailers have proven that they WILL strongly support "quality" films with production values, recognized stars and good performances. Case in point: our tiny theatrical release of "BATTLECREEK" has now sparked RECORD home video pre-orders for Hannover House - with placements at WALMART, TARGET, BEST BUY, FAMILY VIDEO and "awaiting" final approval from REDBOX. This is the first HHSE video heavily supported by TARGET in five years! Our advanced-buzz for "DAISY WINTERS" suggests even more impressive results are likely to follow!
3). UPLIST - While HHSE does need to "uplist" - we DON'T need to do a corporate-merger with another entity to achieve this goal. We were enticed by the offer of working capital and access to production funds from Crimson Forest, and thus our long, slow-dance this past year to try and complete a corporate merger. But in the end, we have determined that we do NOT need to dilute our shareholders by 42% (or any amount) in order to become fully registered and uplisted. Fortunately, the time we spent attempting to complete the Crimson merger enabled HHSE to get our audit materials and records in order to quickly facilitate a re-filing of our Form 10 Registration promptly following 12-31-17.
Wednesday, November 22, 2017
Wednesday, November 15, 2017
Completion of third week for "THE RIOT ACT" Western Production
Greetings HHSE Friends & Followers - The "toughest" footage is now in the can... including all of the OPERA HOUSE sequences (with over 200 costumed characters and extras) and the "Main Street" Sequences (with over 40-animals, 100 extras and 70 truck loads of dirt!). Only 1-1/2 more weeks of principal photography and this one will be ready for editing and post work.
Meanwhile, here's a link to some local news coverage of the shoot... including a last minute "cameo" recruitment of Executive Producers FRED SHEFTE and ERIC PARKINSON to appear as the Newspaper Photographers (anything to save a buck!).
http://www.4029tv.com/article/movie-filmed-on-historic-main-street-in-van-buren/13639564
To protect the confidentiality of the cast and story elements, the local news journalist on the above story was prohibited from shooting during actual filming of THE RIOT ACT.
THE RIOT ACT is based on the true story of romance, murder and revenge that occurred at the Van Buren Opera House in 1903. The film is planned for an APRIL 27, 2018 Theatrical Release through Hannover House, with top USA Markets targeted.
Nearly 35% of the film's production financing is coming from the State of Arkansas incentive and rebate programs... additionally, the Van Buren Chamber of Commerce, the Convention & Tourism Bureau and the Arkansas Heritage funds have all contributed to provide materials, props, goods and in-kind services equivalent to more than $500,000 in production cost savings. One of the key benefits to making THE RIOT ACT as the first HHSE "in-state" production in Arkansas under the new incentives program, is to prove the accessibility and benefits of the local production support and State incentives, in anticipation of the ambitious "MELTDOWN" feature - planned for principal photography early next year at the Arkansas Nuclear One plant outside of Russellville, Arkansas.
http://www.entergy-nuclear.com/plant_information/ano.aspx
ONWARD>>>>
HHSE President FRED SHEFTE atop the lift-gate for Grip Truck 1, utilized on this shoot primarily for the Dolly, Tracks and 12-k HMI lights for the night-time sequences.
Meanwhile, here's a link to some local news coverage of the shoot... including a last minute "cameo" recruitment of Executive Producers FRED SHEFTE and ERIC PARKINSON to appear as the Newspaper Photographers (anything to save a buck!).
http://www.4029tv.com/article/movie-filmed-on-historic-main-street-in-van-buren/13639564
To protect the confidentiality of the cast and story elements, the local news journalist on the above story was prohibited from shooting during actual filming of THE RIOT ACT.
THE RIOT ACT is based on the true story of romance, murder and revenge that occurred at the Van Buren Opera House in 1903. The film is planned for an APRIL 27, 2018 Theatrical Release through Hannover House, with top USA Markets targeted.
Nearly 35% of the film's production financing is coming from the State of Arkansas incentive and rebate programs... additionally, the Van Buren Chamber of Commerce, the Convention & Tourism Bureau and the Arkansas Heritage funds have all contributed to provide materials, props, goods and in-kind services equivalent to more than $500,000 in production cost savings. One of the key benefits to making THE RIOT ACT as the first HHSE "in-state" production in Arkansas under the new incentives program, is to prove the accessibility and benefits of the local production support and State incentives, in anticipation of the ambitious "MELTDOWN" feature - planned for principal photography early next year at the Arkansas Nuclear One plant outside of Russellville, Arkansas.
http://www.entergy-nuclear.com/plant_information/ano.aspx
ONWARD>>>>
HHSE CEO ERIC PARKINSON and FRED SHEFTE on the set at Historic Van Buren
Principal Photography is utilizing the 8K format of the RED MONSTRO, with High-Speed Cooke Lenses, liberal use of Steadicam sequences and the Elemack Spyder pedestal dolly and articulating jib-arm.
What happens when a couple of Exec. Producers visit the set? Sometimes they get recruited for bit parts... and in this case, Shefte and Parkinson portray the Newspaper Photography team for the Fort Smith Times (1903).
If "the South Rises Again," Shefte will be ready to document the next Civil War on this 1890's large format box camera.
Tuesday, November 14, 2017
General Updates on Various HHSE Corporate / Production & Distribution Activities
Greetings HHSE Friends & Followers - As requested and promised, the following blog highlights some updates on key issues of interest to our Shareholders.
1). TIMING OF Q3 FILING - We anticipate being a day late on this filing, with the OTC Markets posting expected on Thursday, Nov. 16.
2). VODWIZ UPDATE - As anticipated, we have closed a major studio venture that will provide tonnage of product to VODWIZ, including a large quantity of recent, theatrical hits. The totality of programming that will be available to consumers through VODWIZ appears to be on track to being second only to Amazon at this point. We see VODWIZ as a major portal for home entertainment digital streaming access, and potentially "the tail that wags the dog" so to speak. Additionally, we are about a week away from the anticipated finalization of a private funding structure to finance the costs associated with building the VODWIZ website (to Amazon Digital infrastructure standards), and all other pre-launch and initial consumer launch costs for this venture.
3). IRS ACKNOWLEDGES LEVY ERROR - HHSE management is pleased to report that a levy issued by the IRS for "estimated payroll taxes" has been corrected and relieved after providing required documentation for the payroll reporting periods previously in question. We have been told that the IRS levy will be lifted (and customers notified) within the next 21 days, and the future reporting of payroll taxes (through our third-party payroll service) will correctly identify the Employer I.D. Numbers that sparked the arbitrary / estimated assessment in the first place.
4). WEEK THREE OF "THE RIOT ACT" FEATURE PRODUCTION - the ambitious, period western (based on a true story and set in 1903) continues to shoot in and around Fort Smith, Arkansas and Van Buren, Arkansas. We are scheduled to wrap principal photography next Wednesday (just before Thanksgiving). Although we are limited in our ability to publicly release cast photos and other production details, we can share a few "approved" stills below that were previously released through social media.
5). DISTRIBUTION ACTIVITIES - HHSE is currently gearing up to manufacture and fulfill the large video manufacturing required to fulfill the record-breaking DVD orders received for BATTLECREEK and BLOODFEAST.
The company is pursuing release activity for the long-awaited (and delayed) theatrical launch of BLOODFEAST, as well as the upcoming DEATH HOUSE, GETTING GRACE and additional markets for the WWII drama CHOSEN.
Other distribution activities include the video releases now in motion for both BONOBOS and ALGERIAN (now renamed as "SLEEPER CELL"), as well as the romantic comedy SPICES OF LIBERTY, the Red Bull motorsports actioner RIDE UNITED, and the also long-awaited DINOSAURS OF THE JURASSIC. Other home video titles include the thrillers IDENTITY CRISIS, MUSE and INSOMNIUM. Many of these releases were intentionally delayed during the protracted "merger" activities between Hannover House and Crimson Forest, which have thankfully been removed as a distraction from our ongoing productivity.
On the publishing front, the re-release of the novel "QUIETUS" (in "trade cover" format) is on schedule for the Barnes & Noble promotion in February, which will be supported with ads in the New York Times Book Review, Publisher's Weekly and Library Journal, as well as email campaigns, social media and a high-profile publicity outreach promotion from FSB Associates.
Lots of good stuff on our plates and in motion...
1). TIMING OF Q3 FILING - We anticipate being a day late on this filing, with the OTC Markets posting expected on Thursday, Nov. 16.
2). VODWIZ UPDATE - As anticipated, we have closed a major studio venture that will provide tonnage of product to VODWIZ, including a large quantity of recent, theatrical hits. The totality of programming that will be available to consumers through VODWIZ appears to be on track to being second only to Amazon at this point. We see VODWIZ as a major portal for home entertainment digital streaming access, and potentially "the tail that wags the dog" so to speak. Additionally, we are about a week away from the anticipated finalization of a private funding structure to finance the costs associated with building the VODWIZ website (to Amazon Digital infrastructure standards), and all other pre-launch and initial consumer launch costs for this venture.
3). IRS ACKNOWLEDGES LEVY ERROR - HHSE management is pleased to report that a levy issued by the IRS for "estimated payroll taxes" has been corrected and relieved after providing required documentation for the payroll reporting periods previously in question. We have been told that the IRS levy will be lifted (and customers notified) within the next 21 days, and the future reporting of payroll taxes (through our third-party payroll service) will correctly identify the Employer I.D. Numbers that sparked the arbitrary / estimated assessment in the first place.
4). WEEK THREE OF "THE RIOT ACT" FEATURE PRODUCTION - the ambitious, period western (based on a true story and set in 1903) continues to shoot in and around Fort Smith, Arkansas and Van Buren, Arkansas. We are scheduled to wrap principal photography next Wednesday (just before Thanksgiving). Although we are limited in our ability to publicly release cast photos and other production details, we can share a few "approved" stills below that were previously released through social media.
For THE RIOT ACT feature - the historic city of Van Buren, Arkansas, has been converted into a 1903 Western Town with the addition of 70-truckloads of topsoil onto the main street (and the voluntary closure of auto access and most businesses for five days).
Producer Lauren Sweetser ("Winter's Bone") also portrays the female lead in THE RIOT ACT
The Arkansas-Missouri Railroad has been restored to 1903 period look and utilized in several key scenes for THE RIOT ACT.
Street Scenes and Opera House sequences for THE RIOT ACT have utilized up to 300 fully costumed extras, plus horse, wagons, cattle and other elements of production value.
5). DISTRIBUTION ACTIVITIES - HHSE is currently gearing up to manufacture and fulfill the large video manufacturing required to fulfill the record-breaking DVD orders received for BATTLECREEK and BLOODFEAST.
The company is pursuing release activity for the long-awaited (and delayed) theatrical launch of BLOODFEAST, as well as the upcoming DEATH HOUSE, GETTING GRACE and additional markets for the WWII drama CHOSEN.
Other distribution activities include the video releases now in motion for both BONOBOS and ALGERIAN (now renamed as "SLEEPER CELL"), as well as the romantic comedy SPICES OF LIBERTY, the Red Bull motorsports actioner RIDE UNITED, and the also long-awaited DINOSAURS OF THE JURASSIC. Other home video titles include the thrillers IDENTITY CRISIS, MUSE and INSOMNIUM. Many of these releases were intentionally delayed during the protracted "merger" activities between Hannover House and Crimson Forest, which have thankfully been removed as a distraction from our ongoing productivity.
On the publishing front, the re-release of the novel "QUIETUS" (in "trade cover" format) is on schedule for the Barnes & Noble promotion in February, which will be supported with ads in the New York Times Book Review, Publisher's Weekly and Library Journal, as well as email campaigns, social media and a high-profile publicity outreach promotion from FSB Associates.
Lots of good stuff on our plates and in motion...
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.
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.
Wednesday, November 1, 2017
Battlecreek opens FRIDAY in Key Markets!
Greetings HHSE Friends & Followers - Watch for BATTLECREEK publicity on major TV news and entertainment shows this week... and check out your local theatre Fandango or other listings for locations near you. The initial 25 locations opening this Friday are listed on the film's website:
www.BattlecreekFilm.com
There is also a special event occurring this Friday at the Laemmle's Music Hall in Beverly Hills, with surprise celebrity guests, cast and crew to support director Alison Eastwood and her Q&A. Event is open to the public, standard theatre admission required. SEE L.A. TIMES FRIDAY AD BELOW.
Watch for updates!
www.BattlecreekFilm.com
There is also a special event occurring this Friday at the Laemmle's Music Hall in Beverly Hills, with surprise celebrity guests, cast and crew to support director Alison Eastwood and her Q&A. Event is open to the public, standard theatre admission required. SEE L.A. TIMES FRIDAY AD BELOW.
Watch for updates!
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