Minutes of evidence taken before the Departmental Committee on Cinematograph Films (1936)

MINUTES OF EVIDENCE 5 May. 1930.] Mr. R. J>. Fennelly. [Com/.. cerns has, so far as is known, any financial interest iti cinemas. Among the foreign controlled renting organisations Paramount have a chain of about 12 theatres in key positions throughout the country, while several of the other companies control a theatre in the West End of London which serves as a shop window for their films. 56. Apart from the two major circuits referred to above there are several circuits of between 50 and 100 theatres and also a number of smaller circuits. In a few cases there are no financial arrangements between the companies constituting the circuit ; they are combined together for the purpose of booking films, presumably because their greater strength enables them to make better terms with the renters. The renters have now set their face against any extension of this practice. 57. The renter normally hires his films to exhibitors on a percentage basis, that is bo say, he takes a certain proportion of the gross receipts of the cinema after entertainment tax has been paid. The percentage charged varies with the type and popularity of the film — from 25-40 per cent., and even higher. Where a complete programme is taken from a renter the percentage is adjusted accordingly, but where the second feature is hired from a second renter it is usually paid for at a flat rate, e.g. £25 for a week. On the average, however, the renter probably takes between 35 to 40 per cent. oJ the gross receipts, less tax. 58. The following Table H shows the total length of registered films exhibited in Great Britain in each of the exhibitors' quota years 1932 to 1935: — Table H. Exhibitors' British. Foreign. Total. Year Statutory Quota. ending 30th Sept. Per cent. Short. Long. Total. Short. Long. Total. Short. Long. Total. (In thousand millions of feet.) 1932 ... 10 0-24 6-89 7-13 4-37 21-49 25-86 4-61 28-38 32-98 1933 ... 12± 0-20 7-90 8-10 3-80 22-20 26-00 4-00 30-10 34-10 1934 ... 15 0-24 9-22 9-46 3-59 23-21 26-80 3-83 32-43 36-26 1935 ... 15 0-17 9-40 9-57 3-85 24-10 27-95 4-02 33-50 37-52 59. The next Table I based on the figures given by exhibitors in the same years in comparison with above gives the percentages of British films shown the statutory quota: — Table I. Year ending Exhibitors' Statutory Quota. Actual Quota of British Films Exhibited. 30th September. All Films. Long Films. Short Films. 1932 1933 1934 1935 Per cent. 10 12i 15 15 Per cent. 21-60 •23 -70 26-09 25-51 Per cent. 24-27 26-20 28-42 28-07 Per cent. 5-13 5-26 6-28 4-21 Comparable figures for the years prior to 1932 are not available, but it will be observed that in each of the last four years exhibitors as a whole have slum n British films considerably in excess of their statutory obligations. It will also be seen that the quota in respect of long films is higher than that for all films. Where an exhibitor is working near to his quota limit he naturally tends to show more British long films in order to make up the deficiency in British short films. 60. It is often stated that the high proportion of British films shown by exhibitors as a whole is due to the fact that the figures are weighted by the high quotas of the two main circuits. This does not, however, seem to be the case. An examination of the returns furnished by the circuit theatres in respect of the quota year 1933-34 shows that their quotas were below the general average in that year. 61. It will be seen from Table I that after a period of three years during which the quota of British films exhibited tended to increase, there has been a slight fall in the year 1934-35 in the case of the all and long film quotas. The short film quota, which is not statutory, fell from 6-28 per cent, to 1-21 per cent. This decline in the exhibition of British shorts was apparently not due to any diminution in supply of such films, as the number H6452 of British shorts registered in the renters' quota year 1934-35 was 123 as against CO in the previous year. Quite a number of these films, registered for exhibitors' quota only, were of the " interest " and instructional type, while many were of a musical character. An examination of the returns made by exhibitors shows that at 1,600 theatres, or one-third of the total number, no British short films were exhibited. It is difficult to account for this decline. It may be due to the character of the films available or to the increasing number of theatres which are now showing two long films, a news reel and sometimes a short comedy as a complete programme. 62. It may he of interesl in record the quotas for England, Scotland and Wales separately in respect of the exhibitors' quota year ended 30th September, 1935. The figures are: — Country. Long Films Quota. All Films Quota. England ... Scotland ... Wales I'i r cent. 28-43 28-24 25-01 Pei cent. 25-90 26-03 22-12