Business Plan

BUSINESS PLAN

 

Hollywood Classics Network is a development stage company incorporated in the State of California and is located in Los Angeles, CA. Hollywood Classics Network is committed to providing television programming geared to the fastest growing and most affluent segment of the population in America; people age 50 years and older now numbering approximately 99,000,000.  This unique segment now controls 70% of America’s wealth.

 

Business of Issuer

Objectives

Our business strategy will revolve around the need to provide quality television programming to the baby boomer generation.

The anchor program of Hollywood Classics Network is titled, The Good Life, a one hour show produced by HCN that will air three times daily: morning, afternoon and evening, Monday through Friday.  The show is similar in format to The Today ShowThe Good Life will feature a variety of celebrities as well as guests who are specialists in the fields of health care, travel, investments, and other topical issues appealing to the 50 year old and over audience.  HCN’s 24 hour network will also feature classic movies, classic TV shows, senior sports events and in-depth interviews with guests who have backgrounds and information which will be of interest to the core audience of 50 years old and over.

Even though HCN’s slogan is Television for the Prime of Life, the overall goal is to have a strong appeal to those who are under 50 years old as well.

Hollywood Classics Network has already purchased a large amount of programming with a market value of almost $18,000,000.  This includes 987 classic movies, 1346 classic TV shows,  television specials including 6-one-hour prime-time nostalgia music specials titled, Musical Reunion, 1 prime-time special titled, Hollywood, Then and Now, as well as a 1-hour prime-time music special titled World Full of Music and Sound Factor a 1-hour prime-time special with many nostalgia music stars, and 39 one-hour episodes of America’s New Country. The classic TV Shows include Bonanza, Beverly Hillbillies, Dragnet, Jack Benny, Lone Ranger, Roy Rogers, and many more. HCN has also purchased original programming of 310 half-hour episodes of The Daily with Mark and Laura Lynn, along with 51 one-hour episodes of The Daily Weekend Edition. In addition to this programming HCN has acquired 7 Star Productions, a very successful film and video production company, in business since 1975.  This acquisition also includes 3 motion picture scripts titled, Who Moved the Stone?, The Black Leather Cross and The Exile: The Story of Daniel the Prophet. These acquisitions were made with 92% in stock and 8% in promissory notes.  With this acquisition HCN’s assets total $18,997,015. This acquisition of programming will reduce our overhead by approximately 40%.

HCN’s senior management team has a combination of over 250 years of television industry and senior business management experience.  This team is led by its founder Paul Webb, Chairman and CEO, who is a seasoned veteran in the television broadcast industry including advertising, production, and program distribution.  Hollywood Classics Network will position itself to become a strong force in a niche market of TV broadcasting in the USA and elsewhere not only through its unique network but also with program content which will appeal to a somewhat currently neglected market, the 50 year old and over viewer.

 

Programming

Here is a description of the many music and celebrity shows HCN has purchased.  A prime time series of nostalgia music specials titled Musical Reunion which is of special interest to the 50 + market. These specials feature many of the best loved performers from the Lawrence Welk Show, such as Jim Roberts, Anacani and Ken Delo. These specials also feature many nostalgia artists, such as Frankie Laine, Kay Starr, Johnnie Ray, Buddy Greco, The Modernaires with Paula Kelly Jr. and many more. HCN has produced a television special titled: Hollywood Then and Now. This program features celebrities and other notables who helped make Hollywood the entertainment capital of the world. It is hosted by Hollywood’s famous celebrity interviewer, Paul Ryan. To round out good, consistent and homogeneous programming HCN has also purchased 39-episodes of America’s New Country, featuring America’s top country music stars.  Additionally HCN has acquired “World Full of Music”, a one hour special featuring Frank Sinatra Jr. and Johnny Mathis. Also a one hour special, Sound Factor, featuring many nostalgia stars.

The 50 + market have special needs and specialized viewing habits which we hope will be met by HCN programming. This audience is especially concerned about their health and fitness and to this end HCN will provide a regular diet of sporting events featuring seniors and other physical activities to spice up their lives in the prime of life, and will feature, on a regular basis, aerobics and exercise classes to prepare them for these activities. Many of them are bored and need to find areas of fulfillment that can be satisfied through volunteering, recreation, new friendships, hobbies and classes for self-improvement such as computer classes which today are becoming more popular and almost a necessity.

We believe this 50 + market has a real appreciation and appetite for classic movies and nostalgia programming. They enjoy looking back as well as ahead. Much of today’s hyperactive convoluted films lacking in family values are of little interest to this marketplace. They prefer programming that will give them a “warm, fuzzy” feeling as well as a laugh or two. There are millions of “baby boomers” being added to the existing market of 99,000,000 people who are ages 50 and older.

In addition to the classic movies and classic TV shows, HCN has a catalogue of 260 available in-depth celebrity interview shows with such luminaries as Milton Berle, Eddie Fisher, Dom Deluise, Janet Leigh, Eddie Albert, Zsa Zsa Gabor, Jane Russell, Ted Danson, Peter Ustinov, Ron Howard, Gene Hackman, Robin Williams, John Ritter, Rock Hudson, Jane Fonda, Rod Steiger, Jack Lemmon, Olivia de Havilland and Dennis Weaver, to name a few. Additional interview shows will be produced.

Our overall goal is to provide programming that will thrill and satisfy our viewers, energize them in their prime of life and assure the prosperity and growth of HCN with sound management, and many national advertisers to bring sizable profits to HCN.

PROGRAMMING SOURCES

The programming, while maintaining an emphasis on HCN’s target market, will be undergoing constant refinement. Although our market is geared to this audience, we will strive for balanced programming that will have some overall universal appeal, plus top rate family programming.

There will be an on-going effort by the HCN creative staff to research and develop programming for our market. For our mature set, much will be available from The American Association of Retired Persons (AARP). There is also a vast amount of first-rate material available from some of the finest film and television schools in the world. The renowned USC School of Film and Television, which has graduated many luminaries in film and TV and UCLA, which has one of the finest film libraries in the world, is located in Los Angeles.

ASSETS OF THE COMPANY

*           987 Classic Movies

*           1346 Classic TV Shows

*           6 Musical Reunion One-Hour Prime Time Nostalgia Music Specials

*           1 Prime Time World Full of Music One-Hour Nostalgia Music Special

*           1 Prime Time Sound Factor One-Hour Nostalgia Music Special

*           1 Prime Time Special – Hollywood Then and Now

*           39 One-Hour Episodes of America’s New Country

*           310 Half-Hour Episodes of The Daily with Mark and Laura Lynn

*           51 One-Hour Episodes of the Daily Weekend Edition

*           7 Star Productions with 3 movie scripts

*           A Current Motion Picture – The Storm
 
Total Assets:     $18,997,015 estimated value by the Company

 

Background on this Market

According to the US Bureau of the Census, this 50+ market is the fastest growing segment of the population in the United States and controls 70% of America’s wealth. The benchmark for this segment of the population is commonly set at 50 years of age by most entities dealing with marketing demographics. The AARP invites membership at age 50. This market, because of modern-day medicine and improved living habits and standards, is ever expanding and at this point in time numbers over 99 million people. An impressive number, but what is equally impressive, are the millions of “baby boomers” now becoming fifty-years-old who will swell the numbers even higher. These are huge numbers representing the wealthiest block of consumers in the country.

AMERICAN ASSOCIATION OF RETIRED PERSONS (AARP)

The AARP has an astounding membership of over 35 million. This makes them by far the largest membership organization in the United States. All of this greatly adds to the potential of Hollywood Classics Network and the vast market it serves. Their monthly magazine has by far the largest circulation of any magazine in America.

 

Promotion and Distribution

HCN management plans an aggressive “tune-in” campaign to gain new viewers. Whenever advertising is run promoting the network, HCN will include its website address and the reason for visiting it. This will be a very highly-charged and on-going effort and will include:

  • Ads and promotions in local newspapers.
  • Commercials on local radio and television.
  • Ads in some well-know periodicals where appropriate.

It is imperative to have an aggressive advertising campaign to gain new viewers at all times

In addition to the 24-hours per day that HCN will be promoting its website on its network, it also plans to  include the website address in all tune-in advertising ads and commercials. Every ad that runs in local newspapers, AARP’s Maturity Magazine, local radio, cable and TV spots will include HCN’s website address. This calculates into multi-millions of impressions per year inviting people to its website. The potential is significant, as viewers will be encouraged to buy products and services advertised on our website.

 

Strategic Alliances and Contacts

Time Life, through associations with Mr. Webb, has agreed to become a large client of the network. Time Life has many products currently being advertised on television, many of which are well suited to HCN’s market. An executive in the marketing division with whom HCN is working is most anxious to place products with HCN that will be highly profitable to all.

Mr. Webb and his Vice President of Business Development, Raul Balderas, have established unusually strong ties with some of the largest catalogue companies in the country. Some of these catalog companies have the potential to become major advertisers.

 

Employees

We are a development stage company and currently have only one part-time employee, Paul Webb. We look to Mr. Webb for his entrepreneurial skills and talents. It is Mr. Webb who provided us our business plan. Initially Mr. Webb will coordinate all of our business operations. Mr. Webb has provided the working capital to cover our initial expense.

Mr. Webb is spending the time allocated to our business in handling the general business affairs of our company such as accounting issues, including review of materials presented to our auditors, working with our counsel in preparation of filing our S-1 registration statement, and developing our business plan and overseeing the sales of tours, the set-up of marketing plans, and hiring appropriate personnel.

We intend to compensate our personnel well, so as to retain their invaluable expertise and to ensure job satisfaction and enrichment through delegation of authority. Our compensation will include health care, generous profit sharing, plus a minimum of two weeks’ vacation. Hollywood Classics Network, Inc. recognizes that our employees contribute fundamentally to the company’s long-term prosperity, acknowledging our obligation to remunerate them competitively. We intend to enhance our capacity to attract and retain people of quality through competitive remuneration packages.

 

Financial

The Company will look to file an S-1 registration statement. It is the hope that the filing of a registration statement will provide the Company more opportunities to raise funds as well as offer the shareholders that purchase shares from this Offering some sort of liquidity. We will register the shares herein along with new shares to offer the public. Thereafter, it will be our intent to file with FINRA for a stock symbol, and eventually, DTC eligibility.

Hollywood Classics Network is seeking 12.6 million dollars at $1 per share.