TDGI ($0.028): Target and Hannover House Set for Direct Video-On-Demand Access.
SPRINGDALE, AR - 12/30/09 - Hannover House, the film and video distribution division of Target Development Group, Inc. (PINKSHEETS: TDGI) (Other: www.TargetDevelopmentGroup.com, www.HannoverHouse.com), has entered into direct access agreements with more than a dozen of the top U.S.A. based Video-On-Demand providers and retailers, with titles being offered as soon as February 2010 . The new structure will enable Hannover House to deliver new release movies and catalog titles on a direct basis through streaming technologies available over the internet and through cable television providers.
"This is a major, structural development for the company," said Eric Parkinson , C.E.O. of Hannover House and Target Development Group, Inc. "We see Video-On-Demand emerging in 2010 as a significant revenue source for Hannover House and other studios with large content libraries. Quality and security issues with the technologies have been resolved, making V.O.D. the easiest way for consumers to access entertainment. As a rights owner and distributor, Hannover saves on the manufacturing and freight costs associated with DVDs and Blu-ray videos, plus benefits from the faster and more direct payment stream. It's a highly-profitable method to deliver entertainment and our new structure should maximize these results," Parkinson concluded.
The Hannover House 2008 release of "Hounddog," starring Dakota Fanning , was made available for Video-On-Demand through a variety of cable networks, V.O.D. suppliers and internet retailers. Key accounts included Time Warner Cable , Comcast , Cox Communications , DISH Network , AT&T , Verizon , Amazon.com and Netflix . Access to these accounts was through a third-party agency, which Hannover felt significantly reduced efficiency, profitability and cash flow timing. Hannover's new structure provides direct access to V.O.D. suppliers and is expected to improve placements, revenues and collections. A complete listing of Hannover House V.O.D. partners will be released in mid-January.
Hannover House owns or controls the distribution rights to more than 150 feature film and television properties. Principal offices, warehousing and production facilities are located in Springdale, Arkansas , in close proximity to the world headquarters for Wal-Mart Stores, Inc. , the nation's largest retailer for entertainment products. Other key accounts for Hannover House products include Amazon.com , Barnes & Noble , Best Buy , Blockbuster , Borders , Christian Book Outlet , Family Christian Stores, Hastings, Hollywood Video, Movie Gallery , Netflix and SAMS Clubs.
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