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Kool Aid Man

05/12/17 4:00 PM

#8444 RE: lsprw #8443

FAIL-->The last few pages of HWAL's music library "evaluation" speaks volumes.

Marketing Strategy
Hollywall intends to generate revenues and profits from the Library in numerous manners. The Hollywall Legacy Library will be sold to wholesale distributors and or large retailers as follows:

a. Single disk releases with twelve titles; SWP $2.75/SRP $4.98
b. One collection containing two disks with fifteen titles on each disk; SWP $7.50/SRP$11.98
c. Estimates by Hollywall suggest that the market appetite for one album will exceed 800 to 1000 copies per month, depending on genre of package. At the end of each eighteen-month period, distribution of an existing album will be terminated and replaced by a fresh album release.

This business model is to be multiplied over various genres, country, oldies, R%B pop and soul. We will also release titles in Easy listening, Reggae, and Jazz and Big Band with more modest sales projected. For example:

a. 10 single releases a year selling 12,000 units each is 120,000 units per year per genre
b. 6 Two disk releases a year selling 8,000 units each is 48,000 units per year per genre
c. 1000 units per month average x twelve months equals 12,000 times 10 releases (this is 120,000 album releases).

Hollywall will be aggressive and visionary in its approach to market direct their music through all media outlets. These outlets will include domestic and international broadcast, cable, satellite, news media portals, social media portals, and online music retailers. Hollywall has already negotiated with many of the outlets to air commercials on a PI basis (or as a joint Marketing partner). These marketing outlets include NBC and their ffiliates, MSNBC, theGrio, TimeWarner, Comcast, ATT, VHI, CNN, and other countless U.S. and international cable operators. In addition, Hollywall Entertainment is currently purchasing web portals and film distributors which will garner them the ability to distribute their music to additional distribution outlets as listed on the attached schedule A.

The Hollywall Legacy Library will be sold Direct to Consumer as follows:

a. One collectible package containing three disks with fifteen titles on each disk: SRP $39.98
b. One Collectible package with five disks with fifteen titles on each disk: SRP $59.98
c. One Collectible package with eight disks with fifteen titles on each disk: SRP 94.98
d. Downloads: SRP $0.69
e. Ringtones: SRP $1.99
f. Hollywall plans to release one 3-CD Legacy album per month per genre and a new 3-CD legacy package every other month. This is a total of six 3-CD Legacy sets a year for each genre. The company projects to sell a minimum of 6,000-12,000 units per release,
depending on genre.
g.Hollywall plans to release one 5-CD Legacy album per month per genre and a new 5-CD legacy package every three months. This is a total of four 5-CD Legacy sets a year for each genre. The company projects to sell a minimum of 6,000-12,000 units per release, depending on genre.
h.Hollywall plans to release one 8-CD Legacy album per month per genre and a new 8-CD legacy package every fourth month. This is a total of three 8-CD Legacy sets a year for each genre. The company projects to sell a minimum of 6,000-12,000 units per release,
depending genre.
i. This business model is to be multiplied by at least eight different genre of product. For example: 1,000 units per month average x twelve months = 12,000 x 10 releases (this is 120,000 album releases).

Music Downloads

a. Estimated 10,000 unit sales for the top producing songs in each genre (80,000 x 20 titles = 1,600,000).
b. 20 titles
c. Estimated 5,000 unit sales for the medium producing songs in each genre (40,000 x 50 titles = 2,000,000).

Licensing Music for Television, Film, Broadway Plays and Commercial Advertisers

a.We assumed a range of licensing fees we would receive for use in film, TV, broadway plays, and or commercials depending on the range of use of the song in the commercial exploitations. With the relationship Mr. Sutton has with the William Morris Agency,Hollywall assumes they will license numerous songs every year for TV, Film, and commercial use.

b. Crazy For The Boys [Rescinded/ FAILED acquisition--KAM] movie and soundtrack sales, product sales, and ancillary revenues
associated with 100% ownership in the property rights

http://doczz.net/doc/12843/valuation-report-intellectual-property

THIS fairy tale is what they told the guy they WOULD generate EVERY YEAR in September 2014...TWO YEARS and EIGHT MONTHS AGO.