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

MINUTES OF EVIDENCE 35 12 May, 1936.] Mr. F. W. Baker, Mr. M. N. Kearney, Mr. A. KoitiM, Mr. N. Loudon and Captain the Hon. R. Norton. [( ontinued. Strictly speaking renters have no interest other than that of renting or selling the films they have acquired to exhibitors who show them The majority of renters in Great Britain are, although registered British companies, in fact the controlled distribution organisations of foreign producers and the object of their activities is to distribute foreign films. The genuine British renters (who are a minority of renters) are. with few exceptions, the controlled distribution organisations of British producers and, although they also distribute foreign films, their main business is to distribute British films. The interests of renters are confined to the distribution of films in this country. (3) Exhibitors are the individuals or companies who own one or more (or a chain) of theatres in Great Britain, and their basic interest is to show to as large audiences as they can attract the films (whether British or foreign) which they have acquired from renters. Their interests are confined to the showing of films in Great Britain exclusively. In actual practice, although their functions are separate and distinct, the three main sections of the Film Trade are closely allied. Production companies are generally associated with renting companies who handle their product, and in certain cases they control important theatre circuits. The two principal theatre circuits in Great Britain are controlled by organisations also controlling British production companies, but there are a number of theatres controlled by the organisations representing foreign producers, and in addition, of course, a large number of independent theatres. In the theatres controlled by genuine British production interests it is not unnatural that the proportion of British pictures shown as compared with foreign exceeds the minimum quota required by the law. In the case of theatres controlled by foreign interests the British quota of films is limited to legal requirements and in many of them poor quality " quota " films are shown. Many independent theatres show a considerably larger proportion of British films than the minimum laid down by law, and in the aggregate the footage of British films exhibited in Great Britain exceeds the proportion required to be shown by the present Cinematograph Films Act — a fact which can be substantiated by the official figures supplied by the Board of Trade. Although, as stated, the interests of film producers are in many eases closely allied with those of renters and exhibitors, the views expressed and recommendations contained in this Memorandum represent only the opinion of British producers as such. A list is furnished in Annex II giving the names of all production companies who are members of the Film Producers' Group of the F.B.I. General Observations. 1. The primary purpose of the Cinematograph Films Act, 1927, when introduced was to ensure that a reasonable proportion of British films should be seen upon the screens of Great Britain — at that time almost entirely monopolised by foreign films — and to assist in the development of the film production industry in Great Britain. 2. That the Act has been successful in its main objects is beyond question. An important and rapidly increasing film production industry has been built up. the output of entertainment films in Great Britain is second only in world importance to that of the United States, and in the production of educational, cultural and general instructional films the industry of this country is beginning to take a leading position. While the growing importance of this latter category of films is not to be depreciated, it is manifest that the making of entertainmeni " feature " films is of by far the greater consequence since it (a) involves the invsatment of very large 36452 capital sums for the construction, equipment and maintenance of studios and laboratories and for the production of pictures, (6) provides continuous employment for a large number of wage earners (carpenters, joiners, scene builders, electricians and the like) as well as experts, technicians and clerical workers, in addition to artistes, directors of production and principal personnel and (c) consumes annually very large quantities of materials produced by British industries. -Some general statistics relating to studios are furnished later in this Memorandum and indicate both the present importance of film production and its growth since 1928. They prove conclusively the development of the industry in this country since the Films Act was made law, and show even more forcibly how great is the increase in production taking place at the present time. The vast new studios just completed and others in course of construction, as well as the establishment of numerous production companies with serious financial and administrative support, are an irrefutible indication that the number of worthwhile British films available for exhibition in the near future will greatly exceed the present supply of such pictures. It is sufficient here to state that under the protective influence of the Act there has been built up and is being progressively increased an industry of very considerable magnitude, the importance of which cannot be measured by figures alone since it is inalienably associated with National prestige and British moral and cultural influence both at home, in the overseas Empire and in the foreign countries, where the popularity of British films is constantly increasing. Film producers submit that, in any consideration of the working of the present Act or of provisions that may be proposed to maintain or supplement existing legislation in the future, by far the most important section of the whole film industry from a national point of view is that devoted to production, which, among other things, ensures the retention in this country of considerable sums of money that would otherwise be expatriated. It is estimated that during the last IS years at least £100,000,000 has been exported from this country as profits on the exhibition of foreign films. 3. Whereas the British film production industry has world-wide interests and British films can carry British scenes, themes, culture and the message of Britain to the furthest parts of the World, the interests of British exhibitors are confined strictly to Great Britain. Their purpose is to secure for showing in their theatres an ample supply of films calculated to attract their patrons, and from this point of view it is of no consequence to them .whether the films they show are British or foreign made provided they draw the public to the Box Office, though it is believed that many of them desire to have a strong British production industry as an alternative source of supply. The purpose of renters is to rent to exhibitors the films they acquire, whether British or foreign, and they secure films either in the open market or from the producers whose product they habitually handle. The majority of leading firms of renters in Greal Britain are the distribution organisations of and directly controlled by American film production companies. The business of British renters is confined in the main to the British Isles and the primary object of foreign controlled renters is to rent foreign films. The position of producers is entirely different for (a) they make British films, and (h) they endeavour to secure the exhibit ion of these not only at homo but overseas also. The difference is one of fundamental and paramount importance, and it is on this account that producers claim that special attention should be given to t he maintenaco and protection of the produc tion industry. 4. It is an indisputable facl that world attention is now largely directed to the developments taking E 2