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Saturday, October 25, 2014 3:23:28 AM
Though being the Distributor, HHSE laying low on "On Any Sunday: The Next Chapter" is most likely very intentional. There is something absolutely amazing and extremely very, very huge that has barely been mentioned here. Normally, the Distributor provides the Prints & Advertising costs for a film. However, the "On Any Sunday" P & A costs are being provided by Red Bull Media and are approximately $4,000,000. As far as I am concerned, with these kind of terms, Red Bull can dictate any publicity mentions they desire. Think about it, Red Bull marketing department probably needs their name out there to justify this expenditure to their superiors.
Consider 2 different scenarios:
A.) Hannover House (HHSE) provides the $4,000,000 P & A costs and gets the HHSE name as top billing.
or
B.) Red Bull provides the $4,000,000 P & A costs, HHSE lays low, yet HHSE still earns it's fees for both the Theatrical and Home Video.
This is a major no brainer. Scenario B is much, much more preferred and beneficial to both HHSE and its shareholders. Take Scenario B all day and every day. No doubt about it.
Here is even more "Gravy". The "Sunday" Home Video Release is scheduled just 3 months after the Theatrical Release, while it is still fresh in the minds of consumers. A Theatrical Release can kind of be looked at as the Promotion and Awareness for the Home Video. The "Sunday" Theatrical will introduce and create awareness to consumers for the "Sunday" Home Video, all at Red Bull expense. Now you know why we affectionately refer to HHSE CEO Eric Parkinson as the "DealMaker".
HHSE will make money on "On Any Sunday: The Next Chapter" in several ways:
Theatrical
* Fees for Booking of the Film
* Sales Fee Percentage of Collections
Home Video
* HHSE pays Red Bull $250,000 Advance (provided by 3rd party investor) which shall be recoupable to HHSE from Net Revenues of film's Home Video Release.
* HHSE retains right to utilize 20th Century Fox Home Entertainment in a sub distribution agreement.
* Cumulative revenue projections are $3,200,000.
ON ANY SUNDAY: THE NEXT CHAPTER will be the WIDEST theatrical release in Hannover's history. The prints, ads and marketing are being funded through Redbull, so HHSE is in an exciting win-win situation!
https://www.otciq.com/otciq/ajax/showFinancialReportById.pdf?id=123744
http://hannoverhousemovies.blogspot.com/2014/09/hhse-redbull-release-pegged-as-2014s.html
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