Away Cash-Intensive Model, Into Fast-Cash Flow Del
Post# of 7290
(Total Views: 190)
Posted On: 09/02/2020 1:35:11 PM
Away Cash-Intensive Model, Into Fast-Cash Flow Delivery Model
At any given time, significant amounts of capital are being captured into fulfilling inventory for retailers, spread over four-to-five months of a multi-title release slate. It's expensive to be in the physical DVD and BluRay distribution business... and even more burdensome when a title is widely placed with retailers!
Both of these costs (manufacturing expenses and payment delays) are functionally eliminated with the V.O.D. streaming model. There is no cost for replicating and shipping DVDs and there's no multi-month "wait" for payment (V.O.D. transactions occur directly with consumers via credit card or bank debit, and are paid in DAYS to the streaming service sites, as opposed to MONTHS for traditional retail distribution). So, in this respect, a shift away from physical DVD / BluRay sales in favor of streaming revenues will significantly reduce the amount of operating capital tied-up at any given time for HHSE / Medallion. The company is basically moving AWAY from a cash-intensive model, and into a "fast-cash flow" delivery model . The company's cash flow IMPROVES under such a digital-streaming distribution model.
Myflix - Brand Positioning for the New Media Marketplace:
http://hannoverhousemovies.blogspot.com/2018/...media.html
HHSE
At any given time, significant amounts of capital are being captured into fulfilling inventory for retailers, spread over four-to-five months of a multi-title release slate. It's expensive to be in the physical DVD and BluRay distribution business... and even more burdensome when a title is widely placed with retailers!
Both of these costs (manufacturing expenses and payment delays) are functionally eliminated with the V.O.D. streaming model. There is no cost for replicating and shipping DVDs and there's no multi-month "wait" for payment (V.O.D. transactions occur directly with consumers via credit card or bank debit, and are paid in DAYS to the streaming service sites, as opposed to MONTHS for traditional retail distribution). So, in this respect, a shift away from physical DVD / BluRay sales in favor of streaming revenues will significantly reduce the amount of operating capital tied-up at any given time for HHSE / Medallion. The company is basically moving AWAY from a cash-intensive model, and into a "fast-cash flow" delivery model . The company's cash flow IMPROVES under such a digital-streaming distribution model.
Myflix - Brand Positioning for the New Media Marketplace:
http://hannoverhousemovies.blogspot.com/2018/...media.html
HHSE
(1)
(0)Hannover House Inc. (HHSE) Stock Research Links
Scroll down for more posts ▼