The Q1 numbers are exciting to me because it shows that HHSE has found a way to make almost $400K profit on much lower gross sales thanks to sticking to a business plan that doesn't require the huge up front expenses (both $$$ and manpower) that every theatrical release involves. By focusing on direct to video this year I believe we will see continually improving profits. Having said that, the occasional theatrical release (Toys in the Attic for example) on movies that have the potential to become relatively big hits gives HHSE an opportunity to get into the big leagues.
The wisdom of the direct to video business plan is demonstrated in the success of All's Faire in Love (55% of Q1 profit) compared to its poor results in theaters last year.
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