The company's struggle as an "independent film distributor" has generated only inconsistent results, with ever diminishing consumer demand for physical DVD units in the face of "better values" being offered from digital streaming services. We have fought valiantly - trying different marketing strategies, and expanding into theatrical releases in the hopes of capturing those prior sales achievements that were obtained in prior years. But alas, consumers and audiences have grown demanding and tight. The proliferation of the Internet has provided an instantaneous means of "sinking" indie films - even though most indie releases are not intended for mainstream audiences - and this has further exacerbated the decline of the indie film community.
So, what is the solution to building HHSE into a successful media company? With each passing day, we grow more convinced that the MYFLIX streaming venture - combining over 12,000 titles from 45+ separate suppliers (including three major studios!) - is the solution to monetizing entertainment in today's digital and "instant gratification for cheap" marketplace.
In the past few weeks, both WALMART and APPLE have announced their intention to embrace the digital streaming industries... both with business plans complementary to, and not directly competitive with MYFLIX. The world's largest companies are NOW recognizing what we identified 5-years ago?
This is why we feel that we are at THE RIGHT PLACE, AT THE RIGHT TIME.
Yes, there will be some cleaning-up remaining from the prior business plan. Some releases that did not perform under these new market conditions can result in the producers "blaming the distributor" for poor market conditions... when in reality, it's just the nature of where indie films are at this moment in time. These old remnants of a prior business plan are being addressed and resolved - so that they do not pose an unreasonable burden or obstacle to the progress of the new business model.
So, for the support we have received from our shareholders these past 25-years.... and for the exciting new opportunity that MYFLIX now represents.... we offer our sincerest thanks and gratitued to our loyal supporters.
-- FRED SHEFTE / ERIC PARKINSON
