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The Year Abroad.
21
the U.S. Senate passed an anti-block-booking bill which failed to reach a vote in the House, but will be revived by its sponsors at the next session.
A Federal anti-trust suit is now pending with negotiations under way for a consent decree — a peculiarity of American jurisprudence by which both sides agree upon stipulations and present a decree to the court for signature. If these negotiations fail, this case may hang fire for two years or more until it reaches the U.S. Supreme Court.
The legislative situation in other countries is far from static. Italy has decided to take over distribution of all foreign films. As 75 per cent, of pictures shown there are American the effects upon the American export market are unpredictable. Japan is blocking export of currency, and Mexico is in a ferment with recurring labour troubles affecting both distribution and exhibition.
United States producers seem reconciled to the British Quota Law on the theory that the increased costs will be offset by the availability of some of the British-made films for the world market. This, it is hoped, will work out to the benefit of both countries.
Company changes have not been drastic during the year, Twentieth Century-Fox and Loew's, Inc., continued outstanding profitmakers. Paramount kept out of the red, RKO reorganisation moves progressed to the point where they seemed destined to get the company out of the courts by the year end, Universal secured new capital and expanded its production plans after a number of executive changes. Warners' financial position improved, United Artists reorganised with Samuel Goldwyn and Alexander Korda the dominant factors. Grand National went into receivership and came out under the name of New Grand National after a merger with Educational Pictures.
A development of the year which attracted increasing attention was the broadened use of advertising films. It is estimated that more than 3,000 theatres are using these at present. Warners and Loew's among the large circuits have refused to show them, but Paramount's partners are taking them in many sections. Independents use them generally. The advertiser pays the exhibitor for the privilege of using his screen aJ. a fixed rate per seat. The films usually run from nine to fifteen minutes. Thoughtful leaders predict that if the practice continues to spread the public reaction will be bad. They contend customers will object to paying to see advertising .
There is general speculation on the place 16 mm. film is destined to occupy in the exhibition field. In many isolated sections, both in the United States and Canada, portable 16 mm. outfits now furnish practically the onlv film entertainment. Schools and colleges are rapidly being equipped with projectors, and the use of these is not being confined to educational films.
The pace of theatre construction did not slow during the year. In spite of the fact that only about 15,000 of the 17,541 theatres in the country are open, new building is general, and wherever new houses appear modernisation of old ones follows quickly.
With all lines of business on the upswing as the year closes and with the new season product breaking records in many places, optimism lias displaced the early year pessimism.