20th Century-Fox Dynamo (February 11, 1956)

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Editorial Observation A DECISIVE OPPORTUNITY (Continued from page 5, column 2) TV sets in as many homes thraighout this great land of ours. In calculating the potential of our 1956 product Mr. Licht- man took cognizance of official figures showing that 8,000,000 TV sets were manufactured in 1955 and 7,700,000 of that output had been sold. Mr. Lichtman took into account, too, that during 1955 an estimated $1,050,000,000, or 25% above the 1954 billings,were spent in television by sponsors. That increase in sponsors’ in- vestment in television programming was made wholly because of a vast TV audience . . . and because TV does sell and move merchandise manufactured and retailed by its advertisers. Hence, TV has been spending increasingly more in its free entertainment programming. And TV plans to spend more on bigger free entertainments this year. Obviously, we cannot assume the ostriche attitude in face of this competition. Knowing, understanding and properly appraising competi- tion enables one to better cope with it. This is one company, thank goodness, that not only has a full appreciation of its competition, but, more significantly and important, is equipping itself to cope with it —as well as to utilize this communication medium’s advertising strength to penetrate TV and radio homes, everywhere, with ticket-selling approaches. OO much for this company’s consideration of competition ^from free entertainment. However, this company’s investi- gations and studies also have produced conclusive evidence pointing up the fact that superior motion pictures today attract more people for higher grosses. Significantly, Mr. Lichtman states: "We have learned definitely there is no room for mediocrity in the picture busi- ness.” That goes not only for production, but for distribution, exploitation and exhibition as well. The solution? More big, superior motion pictures. Those we are assured of releasing this year. What else —to insure success, in spite of free television? Better salesmanship in distribution and better, more imaginative and vigorous showmanship. Mr. Skouras has been and is supporting his courage and confidence with performance, action. The job ahead, surely, calls for hard work. In asking for such backing for the 1956 program, Mr. Skouras is setting the example. None in this organization gives so much time, nor so much of himself to the job, than does our President, for Mr. Skouras practises what he preaches. Moreover, the $80,000,000 quota is no more of a challenge to the domestic branches than is Mr. Skouras’ expectation of a minimum of $60,000,000 from Murray Silverstone’s international organization. '■T'OR confirmation of the conclusion that the 1956 domestic A- assignment is practical and represents a realistic ap- praisal of the year’s potential on an assured great product, most of which embodies picturizations of an unprecedented number of pre-sold best-selling novels and long-run stage hits, let’s dig into our past performance. Let’s gauge it on the basis of ex- perience. In the first place, $80,000,000 represents an increase of a little less than 23% above our record 1954 domestic year. Page 6 In 1954 we developed that record delivery on 14 Cinema- Scope productions made by our studio. This year, with 10 more and bigger CinemaScope feature attractions, including "Carousel” and the 55mm Super CinemaScope road-show, "The King And I”, we operate in a market of greater circulation potential, too, for our CinemaScope-equipped theatre sales possibilities represent- ed, at the beginning of this year, 47.39% more than the total at the end of 1954. Our possibilities on Dec. 30, 1954 totalled 9,l6l and on February 1 of this year they added up to 13,549. Our stereophonic sound possibilities in the same period increased by 308 and optically sound sales prospects almost doubled! Equipped Drive-In possibilities now total 3,157. fiO, the expectation of a slightly under 23% increase over our 1954 return in view of the wider market for Cinema- Scope product is a sound business calculation. It is in line with progressive operation. Those two facts, indeed, stand out when one takes into consideration the huge increase in investment this company is required to make to produce and deliver the type of product as- sured for this year when compared with the cost of the 14 Cine- maScope pictures from our studio domestically released in 1954! But, let’s forget 1954 and base expectation on 1955 ex- perience. 1955, from the standpoint of revenue domestically grossed, was disappointing. However, sales and booking performances were outstand- ing. But, earnings from the 1955 product were not commensurate with representation. The boxoffice return was, as a whole, not what had been expected; hence, rentals were affected. Month for month, however, the quality and pulling power of our pictures this year promise to be greater than those of either 1954 or last year. Big pictures properly exploited still develop outstanding And there is the promise we will have thrice more such attractions this year than we had in 1955. But, experience has shown conclusively, too, that the earnable maximum is insured only if EVERY RELEASE is fully exploited in advance and followed through with a correspondingly good exploitation on the local-level. J UST as no picture is to be sloughed off in its distribu- tion, so no release can be expected to develop the earn- able maximum unless it is properly exploited in advance and at its first runs. Greater public merchandising in advance of pictures not based on pre-sold best-sellers or stage hits will facilitate dis- tribution’s task to produce that $80,000,000 year. Reference is made particularly to such attractions as "The Man Who Never Was”, "On The Threshold Of Space” of this quarter and others to come in the remaining nine months of this year. "Carousel” and "The Man In The Gray Flannel Suit” are currently being brilliantly sold. There is no doubt, because of advance word from the studio that they are even more potent than they were as long-run stage hit and current best-selling novel, respectively. The magnificent advance campaigns each is re- ceiving from Charles Einfeld’s organization give promise they will give an outstanding account of themselves. But, releases like "The Man Who Never Was” and "On (Continued on page 20, column 1)