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FAYETTEVILLE, AR / ACCESSWIRE / December 31, 2021 / Building on streaming revenue and premium feature film productions, Hannover House, Inc. (OTC PINK: HHSE) is targeting a record year 2022 for gross revenue and profit. The veteran independent studio (founded 1993) forecasts gross revenues of over $ 20 million with pre-tax profits of over $ 4 million in the coming year. The company’s previous revenue record was set in 2007 at $ 11.4 million in gross revenue, a time when the company held an impressive number of titles in the Walmart and Best Buy DVD budget bins.
“We are emerging from a period of rebuilding over the past three years,” said Eric Parkinson, President and CEO of Hannover House. “As the physical activity of DVD and BluRay evolved into a consumer preference for streaming, we had to reorganize our operations to move towards this new medium. As a result, our MyFlix multi-studio streaming concept is expected to generate at least $ 15 million in 2022, and that result would represent three-quarters of the company’s total gross revenue for the year. The other significant paradigm shift for Hannover House is the company’s new involvement in facilitating the production of premium feature films, which will generate overheads and costs for These new productions are expected to generate around $ 3.5 million. dollars in revenue, with a margin of approximately $ 1.5 million in 2022. Finally, the company’s long-standing business of selling physical DVDs, BluRays and books will continue to generate business, but at a much lower level compared to MyFlix and large productions “, he concluded.
The MyFlix service will offer the best of several successful streaming competitors. Consumers will have very broad access to titles through MyFlix – over 15,000 titles – and these can be watched via a monthly subscription. (like Netflix), or on the basis of fees per transaction (ala Amazon), or under an “advertisement supported” option in which programs are interrupted by advertisements (ala Tubi). MyFlix hopes to eventually offer an educational portal, interactive games and the ability to download videos (otherwise YouTube). It will cost around $ 4 million to launch MyFlix, which the company expects to secure through an investor-backed line of credit.
“If you compare MyFlix to existing services, it’s very easy to project potential revenue above $ 100 million by the second year of the business. We’re taking a much more conservative view and projecting just north of $ 1 million. dollars per month, which is only $ 86 per title, so we may have to revise the 2022 forecast by the end of the summer if the consumer response is closer to the potential of the business, ”Parkinson said.
Hannover House shares are traded on the OTC Pinksheets exchange and have hovered below $ 0.02 for several years.
“Our major shareholders are confident that the share price will improve significantly as we approach 2022,” Parkinson continued. “While competitors like Netflix can support a market cap of $ 250 billion, it is not unrealistic to view Hannover House / MyFlix as supporting a market cap approaching $ 1 billion at a reasonable time as MyFlix builds brand awareness of the brand. Obviously, if that were to happen, the impact on Hannover House’s actions would be significant. “
Hannover House, Inc. is a Wyoming registered company. The company has a production office in Oklahoma and a marketing office in Arkansas.
For more information, contact: ERIC PARKINSON / [email protected] / 818-481-5277.
THE SOURCE: Hannover House, Inc.
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