LOS ANGELES, CA / ACCESSWIRE / November 14, 2019 / As the worldwide home entertainment marketplace moves ever more rapidly towards direct-to-home streaming, distributors of physical DVD and BluRay movies are facing an adapt to survive mandate. Recognizing this paradigm shift, indie studio Hannover House, Inc. (OTC PINK:HHSE) has implemented a bold, two-tier operations strategy that adds the best elements of streaming with the most commercial product strategies for theatres, home video and television distribution.
“This week’s launch of Disney+ resulted in over 10-million monthly subscribers quickly signing up for the $69.99 annualized access fee,” said Hannover House C.E.O. Eric Parkinson. “Industry analysts are predicting that Disney+ will have over 35-million monthly subscribers this year, which represents a new revenue stream for Disney of more than $2.4-billion dollars. It’s easy to see why we are excited about the launch of our own streaming service, MyFlix, which will carry titles from more than forty supplier studios instead of limiting programming to one or two studios or a specific genre,” he concluded.
MYFLIX has been developed by Hannover House as a one-stop digital superstore, offering customers access to more than 12,000 titles from more than forty supplier studios and film libraries. The company plans to offer customers the option to choose either of the most popular streaming access programs: a per-transaction option or a monthly subscription option. Based on new corporate funding which is expected by February, Hannover House will be launching MyFlix in the spring of 2020, with approximately 4,000 titles offered initially, and 500 titles being added each month during the first year.
“The home video industry used to have a consumer slogan of ‘watch what you want, when you want it,'” said Parkinson. “But with the demise of home video rental stores, access to programming has become extremely limited and controlled by a handful of streaming sites. With MyFlix, we are putting the consumer back in control by providing access to thousands of programs otherwise not available through existing streaming media and sites.”
Parkinson is credited within the home video industry as the pioneer in sell-thru priced home videos. As C.E.O. of multi-Oscar winning studio HEMDALE, in 1994 Parkinson implemented a VHS Video pricing strategy of under $20 per movie, which shook up the rental industry that had grown lethargic under $79.95 priced VHS movie releases. Hemdale releases benefiting from Parkinson’s breakthrough consumer marketing strategy included TERMINATOR, LITTLE NEMO, PRINCESS & THE GOBLIN, MAGIC VOYAGE, SAVAGE LAND, THE POLAR BEAR KING and HIGHLANDER 2 – which collectively sold more than eight-million VHS copies, landing six of the top ten “highest R.O.I. titles” as tracked by Video Store Magazine.
“MyFlix has the potential to shake-up the streaming marketplace,” predicts Parkinson. “Many consumers are already reporting ‘Netflix Fatigue’ resulting from their limited programming selection; this may eventually impact CBS Now, HBO and Disney+ based on their programming strategies. But we do not expect a programming shortage for MyFlix, and with a much broader selection of titles, genres and pricing options, MyFlix is positioned to establish itself as a solid player in the home-streaming marketplace,” he concluded.
Digital streaming is only one aspect of the Hannover House 2020 business model. The company has identified production financing opportunities that utilize international sales, State Incentives and bank gap financing as a means to create commercial films for release, and to build valuable balance sheet assets.
On the production front, Hannover House has licensed selected distribution rights to the family-appeal feature film, “WILDFIRE,” which was inspired by the hit song by Michael Martin Murphey about a young girl and a mysterious horse. The film takes the premise of the song and melds it with the folklore of the legend of the Cherokee Ghost Horse – which describes a magical horse that acts as a bridge between the world of the living and those in the realm of the afterlife. Hannover House plans for its largest ever USA theatrical release for “WILDFIRE” in the spring of 2020, to be followed by a summer home video and streaming release. Discussions are also underway with a major cable network concerning a potential weekly television series for HHSE to produce based on this film, characters and situation.
Hannover has also been developing the feature film, “MELTDOWN” as a $12-mm production with three “A” level stars. The story has been described by Screen International as “Die Hard in a Nuclear Plant” and tells the story of three unlikely heroes that thwart a deadly terrorism plot. Hannover hopes to shoot “MELTDOWN” in June and July of 2020, with the majority of production occurring in Oklahoma in order to access the State’s lucrative incentives program, as well as the support programs being made available to eligible productions by the Cherokee Nation Film Office. “MELTDOWN” will be presented to international co-production or distribution licensing partners at the European Film Market (EFM) held in Berlin, Germany in late February, as Hannover is seeking to raise the remaining thirty percent (30%) still needed to complete the film’s budget requirements.
“THE LEGEND OF BELLE STARR” tells the true story of the Old West’s most notorious lady-bandit, and her ambush murder prior to the Oklahoma Land Rush in 1889. Negotiations are in motion with two major stars, and a late summer (2020) shoot date is being planned.
Another major title, an animated feature with a $20-million-dollar budget and three “A” level voice cast members, is being prepared for a separate announcement.
Each of these higher-profile productions are expected to have significant or wide-level theatrical release in North America, prior to home video, streaming and television distribution. These films will comprise the event-level / locomotive releases that will drive the largest portion of the company’s non-MyFlix gross revenues each year.
Hannover House will remain active with the distribution of films onto physical home video platforms in addition to streaming media, although physical video sales are expected to only comprise about fifteen percent (15%) of the company’s cumulative revenues during fiscal year ending 9-30-2020. Upcoming physical home video releases include:
“SHARON 1.2.3.” – A sexy and irreverent comedy from hit making writer-director MARK BROWN, creator of the successful “Barbershop” series. The film’s strikingly attractive cast includes popular stars GINA RODRIGUEZ (“Deepwater Horizon”), NADINE VALEZQUEZ (“Flight”), SKYLAR SAMUELS (“The Gifted”) and ERINN HAYES (“The Watch”). Hannover House will represent the film for physical home video as well as international distribution.
“RIDE UNITED” – A popular motor-cross documentary from Red Bull Media, which Hannover House is releasing to the specialty home-video (DVD / BluRay) markets. The film was a 2017 theatrical release, and will see its first home video presence from Hannover House.
“AMERICA UNITED: IN SUPPORT OF OUR TROOPS” – An all-star cast of music artists and comedians combined for this ABC-Television prime-time celebration and fund-raising endeavor to support USA Troops. Issues regarding music clearances had previously delayed the release of this program onto home video.
“WHERE’S THE DRAGON?” – Hannover House is negotiating a deal structure with the film’s production company owners, which is expected to resolve the delay in the release of this high-end animated film. In 2017, Hannover House supervised the recording of English-speaking actors, including Academy Award winner Kim Basinger among its voice cast. A dispute over North American distribution rights sidelined the release of the film until recent developments.
Hannover is also handling four specialty theatrical releases, which will be described in separate press announcements.
“We feel that this strategy gives us the greatest upside potential,” Parkinson continued. “We will have high-end films for theatrical release and maximum revenue potential. We will continue to release specialty titles for limited theatrical and physical home video. And we will be launching the one-stop digital superstore concept for MyFlix which will enable us to reach millions of consumers on a direct basis. During the 25-year history of Hannover House, we have modified our strategies as needed to anticipate changing market conditions. With these significant endeavors, we feel we are well ahead of the current wave of media evolution to best grow the company and shareholder value.”
ABOUT THE COMPANY
Hannover House is a USA-based entertainment media distributor, specializing in the manufacture and release of pre-recorded movies and programs onto DVD and BluRay video devices, and the publication of literary and non-fiction books. Hannover is also active in the release of higher-profile films to theaters and to the domestic (North American) television markets. The Company has released over 450 separate feature film or television titles, with DVD sales of more than 10-million units since the launch of the Company’s activities in releasing that format. The company has also published a wide-range of books, including the #1 Amazon.com best-selling non-fiction book, “Blood, Money & Power: How LBJ Killed JFK” by attorney Barr McClellan and the best-selling suspense thriller, “Quietus” by author Vivian Schilling. The company is domiciled in Wyoming; however, management offices are located in Fayetteville, Arkansas, as a proximity choice to be near the world headquarters for Walmart Stores, Inc. Hannover House, Inc. was originally incorporated in California in 1993 (as “Truman Press, Inc.”) and become a publicly traded company on the OTC Markets, symbol HHSE, in December, 2009.
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SOURCE: Hannover House
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