The film finds its tongue (1929)

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EARLY STRUGGLES 23 These 800 and 1000-foot reels of film cost $100. They were still perfectly good when the exhibitor had extracted all the money possible from their use in any one spot. If he wanted to make more, he had to move his show to another location. That was what Sam and Albert Warner had done with The Great Train Robbery, ■ It was soon seen that permanent theatres demanded lots of film — a new show every day if the town was small and the most was to be made out of the theatre. This situation gave birth to the Exchange idea : originally just what the words connote — theatres exchanged film, reel for reel, saving half the cost. Soon it led to the introduction of the Distributor into the scheme of things. The Distributor — still called the Exchange^— bought film from the Producer and rented it to the Exhibitor. A theatre, then, instead of paying $100, could get a subject for $15.00 or $20.00. The Warner Brothers got two changes of program a week for $40.00. Profits at this rate were good. Too good for the Exchange operators. Film rentals began to go up. Warners were notified that thereafter their rental would be $100.00 a week.