HHSE / MYFLIX ONGOING BUSINESS MODEL? With management having determined that the lower-end titles are cash-intensive, time-consuming and deliver only a very marginal revenue upside, the goal has been to identify specific areas within the entertainment industry where a company such as Hannover House can excel. For this reason, the company determined that the best strategy for maximizing revenues and bottom line results is a two-pronged approach: Major Films for HHSE and MyFlix as a one-stop digital streaming store.
By "Major Films" we mean that the company plans to release FOUR (4) features per year that have high-profile casts and which deserve (and get) broad theatrical distribution (500 or more locations). The first of these "Major Films" is a feature that's 95% completed at this time, and which HHSE plans to release in early MARCH, 2019. This title has NOT yet been announced.
It is management's belief that MOST of the titles comprising these four annual tent-poles will ultimately need to be PRODUCED by (or with the assistance of), HHSE in the Studio capacity. This is because at the film festival circuit level - generally speaking - any film of commercial merit has either been pre-sold to the major studios or ends up sparking a bidding for for the acquisition of rights (and HHSE cannot realistically expect to compete against the current acquisitions funding of Amazon, Netflix or the Major Studio specialty divisions). To get these "Major Films" - HHSE is likely going to have to act as a catalyst to spark the production. A good example of how this might occur is listed below (see "MELTDOWN").
With respect to MYFLIX - while the on-boarding of titles continues at full speed (now at 1,168 titles - FULLY WITH MASTERS, as opposed to 2,100 with "only Metadata" and not fully with conformed masters) - and acquisition of more studio supplier partners continues (now representing well in excess of 10,000 titles) - the actual consumer launch of the site does not look likely for the next few weeks. We are now going into the insane HOLIDAY season for ads and digital media, creating both a shortage of promotional inventories and a spike in costs. The cost for 30-second TV Ads on national cable (for instance), drops by more than 50% after January 1st... which also corresponds with terrific cold-weather, indoors-type seasonality (perfect for our MyFlix launch - and also corresponds with when we will surpass the 2,500 titles ON BOARDED level).
