Independent entertainment distributor Hannover House, Inc., (OTC: HHSE) is forecasting rapid growth in revenues from the launch of a multi-studio video releasing venture, the company announced today. Medallion Releasing, wholly-owned subsidiary of Hannover House, will launch with new release DVD, Blu-Ray and Video-On-Demand titles in November under distribution pacts with four outside studio labels. The new sales venture, modeled after the successful structures put into operation for Universal / Vivendi and Allegro Media Group by industry veteran Tom Sims, is expected to significantly enhance the market-share for Hannover House. The Medallion Releasing venture will be managed for Hannover House by Tom Sims, who recently joined the company as Vice President of Sales.
The first label supplier announced for the pact is California-based Paseo Miramar Studios, whose "American Justice" actioner will launch the Medallion efforts. Paseo Miramar is committed to deliver one or more new release production per quarter. Additional studio label supplier ventures will be individually announced over the next few weeks, but include an established supplier of "Urban" titles, an established supplier of "Christian" Family movies, and an established supplier of "Spanish" home video programming. The existing labels being added into the Medallion Releasing / Hannover House venture have historically generated between $8-mm and $20-mm annually in cumulative, gross sales.
"We see this consortium of independent labels as an important strategy for the growth of Hannover House," said C.E.O. Eric Parkinson. "Adding complementary and non-competitive new release titles to our monthly release slate immediately increases our overall revenues and market share. As we also continue with our growth into the realm of higher-profile, theatrical titles, this strategy of parallel paths will assure rapid growth in revenues and bottom line earnings," he concluded.
Upcoming titles to be released under the Hannover House label include a wide range of titles and genres, with a concentration in the sci-fi and horror categories. The new products from the outside supplier studios to Medallion are not expected to compete for the same shelf and kiosk space as the Hannover House branded titles. Key titles coming soon from Hannover House include horror-thrillers "Valley of the Witch", "The Midnight Horror Show" (aka "Theatre of Fear"), "Possesion: The Ingloda Within", "Spring Break Murders", "Frankenstein 2014", "The Coffin", "The Honeymoon" and "Gabrielle." Urban titles include "Grim", "Sunshine", "Pappa Cap" and "Next Up." Dramas include "Wide Blue Yonder", "Reach" and "Bobby Dogs." International Cinema titles include "The Weather Station", "Asalto Al Cine" and "Borrar de la Memoria." Special Interest titles include "Dinosaurs of the Jurassic" and "Bonobos." Additionally, Hannover House and Medallion will be pursuing the original, theatrical-caliber production of "Black-Eyed Dog" (now in final post-production), "Mother Goose: Journey to Utopia" and "The Legend of Belle Starr." Two additional productions are being separately funded for Hannover House to release, "Shuck and Jive" and "Shadow Vision."
Adding four or more established labels to the Hannover House "core" revenues of North American video distribution should have a significant sales impact, the company reports. Hannover House will also be launching a multi-studio venture for direct consumer Video-On-Demand streaming this summer under VODwiz.com, which is also expected to generate significant new revenues.
"We are continuing to sign-up new suppliers for both the Medallion sales venture as well as for VODwiz," said Fred Shefte, President of Hannover House. "We have unlimited capacity for supplier partners into VODwiz, but will want to limit the number of studios suppliers to our packaged goods venture due to space and competitive limitations. There?s always room at key video retailers and mass merchants for high-end theatrical releases, so this would be an area where we could expect to see significant opportunities."
Hannover House was established in 1993 as a book publisher, with a DVD product line added in 2002. The company quickly grew into one of the top indie-studio labels. During the past 12 years, Hannover House has released over 150 titles to the home video market in North America, and has added theatrical, television and video-on-demand activities over the years as title demands would merit. The company's film and television library now has over 250 titles.
Existing, key retail accounts for Hannover House consumer packaged products include Walmart Stores, Inc., Redbox, Netflix, Best Buy, SAMS, Barnes & Noble and thousands of independent video retailers, schools, libraries and booksellers. The company also sells entertainment products to a wide range of internet sites, and services most major video-on-demand portals. The company has been profitable for each of the past eighteen quarters, and feels that the 2014 and 2015 new activities will significantly increase both revenues and bottom line results. Hannover House stock is currently traded on the OTC Markets under ticker symbol: HHSE.
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This press release may contain certain forward-looking statements within the meaning of Sections 27A & 21E of the amended Securities and Exchange Acts of 1933-34, which are intended to be covered by the safe harbors created thereby. Although the company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, there can be no assurance that these statements included in this press release will prove accurate.
