Hannover House Inc (HHSE)

[MoneyMan]

So considering Cannes was a total bust what does that do to the fake new library valuation?

A review of sales activities at the Cannes Film Festival and Marche du Film and other relevant agenda items affecting the Company’s Film Library Valuation have occurred over the summer (2016) and the Company feels confident of having reached a consensus with the valuators on the current and anticipated value of each title, by media income stream.

Did everyone forget about this blog where they told everyone their entire biz new newest newer biz model is not working:

http://hannoverhousemovies.blogspot.com/2016/09/footrace-to-year-end-overview-of-what.html

For instance, two areas that are NOT meeting management's hopes are:

1). "Direct to DVD" Releases - the return-on-investment for low-end titles has fallen dramatically, as consumers are less willing to spend $9.96 on a no-name, non-theatrical horror video than in year's past. As the sales have declined, the cost-of-goods has stayed the same, as we have an obligation to keep the Walmart and Best Buy shelves well stocked (even for "slow" moving titles). This changing aspect of the market indicates that non-theatrical titles are less attractive now for HHSE / Medallion to release.

2). "Low-End" International Sales - After a highly visible presence this year at Cannes - including a booth, multiple full-page trade ads, and four official market screenings - we have concluded that the international market for "low-budget" / non-A-star features is insignificant. Most of the international licensors prefer to handle smaller films under "distribution deals" without paying an upfront licensing advance... and the only titles getting advances and big minimum guarantees are the higher-end, original productions. Accordingly, the benefit of handling and promoting smaller titles for the international market is dubious.