two areas that are EXCEEDING management's hopes are:
3). "Theatrical Services" - as major outlets (most notably NETFLIX and the PAY CABLE Networks) now REQUIRE some level of USA Theatrical release, the need for access to theatres has grown many-fold. Accordingly, the access that HHSE / Medallion have to secure screens at the top theatre chains nationwide has become a valuable commodity - and source of "theatrical servicing fees." This activity provides up-front payments to the Company - as opposed to prior business models in which the Company put up hundreds-of-thousands (or MILLIONS) of dollars in P&A Cash, Credit and Loans, only to have to wait YEARS for the revenue streams to pay it back (think back to the release of the movie "TWELVE" - and how painful that debt burden had been to the Company for the past five years). Additionally, we have found that MANY (if not MOST) of our paid, theatrical servicing clients have ALSO been engaging HHSE / Medallion to handle Home Video, Video on Demand and Television. So our access to theatres has become a strong acquisition tool as well as a source of operating cash flow... and the side benefit is that mass merchants and major video buyers (including REDBOX KIOSKS) have a strong preference towards carrying videos of films with theatrical momentum.
4). "Production Services" - As the worldwide film distribution market continued to mature in favor of bigger budgeted films, HHSE / Medallion have the challenge of trying to acquire rights to such titles. We have found that buying finished films on the festival circuit is a costly endeavor... with bidding wars against the Major Studios, the Weinsteins and Lionsgate often jacking prices to unprofitable levels. Instead, what we have found, is that facilitating the production of higher-end films is a smarter strategy for both controlling the distribution rights up-front... but also as a source of up-front "production services" fees for the Company. Mid-level productions such as "Shadow Vision", "True Freshman" and "The Final Minute" provide reasonable cash-flow for overhead and operations... while mega productions such as "Mother Goose" and "AJA" are structured even more lucratively for the Company. Having ownership of our own film gear and Grip Truck is another plus, as are the three State of Arkansas incentives for original productions (15% across the board; an additional 10% for Arkansas entities and residents; and additional 25% for technology positions and post-production under the EEDC).
3). "Theatrical Services" - as major outlets (most notably NETFLIX and the PAY CABLE Networks) now REQUIRE some level of USA Theatrical release, the need for access to theatres has grown many-fold. Accordingly, the access that HHSE / Medallion have to secure screens at the top theatre chains nationwide has become a valuable commodity - and source of "theatrical servicing fees." This activity provides up-front payments to the Company - as opposed to prior business models in which the Company put up hundreds-of-thousands (or MILLIONS) of dollars in P&A Cash, Credit and Loans, only to have to wait YEARS for the revenue streams to pay it back (think back to the release of the movie "TWELVE" - and how painful that debt burden had been to the Company for the past five years). Additionally, we have found that MANY (if not MOST) of our paid, theatrical servicing clients have ALSO been engaging HHSE / Medallion to handle Home Video, Video on Demand and Television. So our access to theatres has become a strong acquisition tool as well as a source of operating cash flow... and the side benefit is that mass merchants and major video buyers (including REDBOX KIOSKS) have a strong preference towards carrying videos of films with theatrical momentum.
4). "Production Services" - As the worldwide film distribution market continued to mature in favor of bigger budgeted films, HHSE / Medallion have the challenge of trying to acquire rights to such titles. We have found that buying finished films on the festival circuit is a costly endeavor... with bidding wars against the Major Studios, the Weinsteins and Lionsgate often jacking prices to unprofitable levels. Instead, what we have found, is that facilitating the production of higher-end films is a smarter strategy for both controlling the distribution rights up-front... but also as a source of up-front "production services" fees for the Company. Mid-level productions such as "Shadow Vision", "True Freshman" and "The Final Minute" provide reasonable cash-flow for overhead and operations... while mega productions such as "Mother Goose" and "AJA" are structured even more lucratively for the Company. Having ownership of our own film gear and Grip Truck is another plus, as are the three State of Arkansas incentives for original productions (15% across the board; an additional 10% for Arkansas entities and residents; and additional 25% for technology positions and post-production under the EEDC).
