Motion Picture Herald (Nov-Dec 1946)

MAJORS ASK SHORTS RENTAL RISE TO MATCH COST SPIRAL J Executives Seek Exhibitor Reaction; Cite Cost Rise of 100% Since Pre-War Short subject production costs have risen 100 per cent and more over pre-war years, while film rentals have remained stationary, executives of the short subject departments said in New York this week while surveying and tabulating exhibitor reaction to a j contemplated increase in rentals, j The production costs of cartoons and muj sical band numbers show the greatest in| crease, they report. These subjects were ' produced in 1940 for $7,000 to $10,000. Today the production cost of each of these subjects is at least $26,000 and sometimes as high as $35,000. Added to this is the in| creased print costs of about $12,000 and disi tribution costs of $15,000. The average re; turn from film rentals on each subject is j| less than $50,000, distributors say. ' Increased Costs Stem From Varied Factors . According to Harry J. Michaelson, short subject sales manager of RKO, Max Weinberg of the MGM short subject department; I Bernard Goodwin, Paramount's short subj ject business manager, and other executives, these increases have been brought about by the rising cost of raw film stock and processing, building materials for studio sets, general increases in the price of studio equipment and finally by the 33 per cent granted to studio musicians last April and the 25 per cent over-all wage increase granted in July by producers to all film crafts. The signing of a new contract two weeks ago between studios and the IATSE laboratory workers which became effective Monday and involved wage increases of $5,500,000 over a two-year period, and $2,320,000 in retroactive wages, will also have its effect. During the past two years alone, the production cost of one and two-reel subjects has risen more than 50 per cent, Mr. Mi■ chaelson pointed out. Currently, he said, ! RKO is analyzing the gross returns from short subject film rentals in an effort to determine which subjects and series of subjects are being produced and distributed without a profit. He added that an end to . the rising production costs is not in sight. Producers May Have to Drop. All Expensive Subjects Speaking generally on the increased costs, I Mr. Goodwin of Paramount said that if ex| hibitors cannot afford to pay the increased j rentals contemplated by most of the companies, producers will have to eliminate their more expensively produced quality short subjects and return to making inexpensive ! one-reel black and white subjects. 20% OF FOOTAGE USED FOR SHORT PRODUCTION An index of the importance of short subjects in relation to feature product is the fact that of all film footage used in the production of motion pictures about 20 per cent is devoted to one and two-reel subjects. A sufficient number of short subjects are made available to exhibitors to provide 12 minutes of playing time for every hour of screen time devoted to the presentation of feature pictures. The distributors plan 542 short subjects for the 1946-47 season. The total for 1945-46 was 442. This would eventually hurt exhibitors' business as many are considering a return to the single feature policy when a decision on the Government's proposed Consent Decree is handed down. If and when this policy becomes effective and shorts are given additional playing time in theatres, Mr. Goodwin pointed out, the public will demand the best one and two-reel subjects, but by that time it may be too late as it may take producers some time to return to the production of quality, since they will have to be guaranteed a fair profit. . Tentatively placing the anticipated increased rental figure from 25 to 50 per cent, spokesmen for the distributors point out that to date there has been no cut-back in production, distribution, advertising or exploitation costs, and say that if exhibitors cooperate by accepting the rental increases the producers and distributors can guarantee a continued flow of one and two-reel product comparable to that they have been receiving in recent seasons. Further, they say, if the increased rentals are not accepted, exhibitors will see more and more of the inexpensive pictures such as sport and travel pictures and subjects containing scenes culled from the industry's archives. Campaigns to Inform Exhibitors of Rise Shortly nearly all the distributors will inaugurate campaigns to inform all exhibitors of the rising costs in relation to the black and white short subject film rentals which have not been increased in 15 years and Technicolor subject rentals, which have not been increased in eight years. In first reports many exhibitors argue that companies are now making more money and are enjoying a greater annual net profit than in any time in the history of the business. They claim that with these profits distribu tors can well cover any losses incurred by the distribution of short subjects. They further point out that few if any one and two-reel pictures contain sufficient name and star value or drawing power to entice audiences into theatres. However, executives of some of the larger circuits, after studying the distributors' case, recognize, that something will have to be done in the way of rental increases and have notified several distributors that they will be glad to discuss the matter. Increase in Number of Subjects This Year Despite the financial difficulties short subject production is now encountering there has been an increase in the number of one and two reel subjects to be produced this year over the 1945-46 season. According to statistics from the eight distributors there will be 542 short subjects released during 194647, as compared to 442 last year. Columbia will release a total of 112. Of these 84 will be one-reel subjects, while 28 will be two reels each. MGM's short subject program totals 48 planned thus far and includes 12 Technicolor Travelogues, 10 Pete Smith specials, 16 Technicolor cartoons and four Crime Does Not Pay specials. Paramount has scheduled 64 subjects, including six Musical Parade Featurettes in Technicolor, six Paramount Pacemakers, 30 one-reel animated subjects, six Popular Science, six Unusual Occupations, and 10 Grantland Rice Sportlights. RKO plans 74 subjects broken down as follows : 12 two-reel comedies, four two-reel musicals, 18 Disney cartoons, 13 Sportscopes, seven Flicker Flashbacks, and 12 two-reel This Is America subjects. Twentieth Century-Fox will have approximately 50 subjects this season, including the Movietone Adventure series, 13 issues of The March of Time, the Mel Allen sports series, and Terrytoons. United Artists Schedules 59 for This Season Fifty-nine subjects are scheduled by United Artists. Thirty-nine of these will be supplied by John Grierson's The World Today, Inc., and Morey and Sutherland will supply 13 Daffy Ditty cartoons. David L. Loew will produce seven short subjects for UA. The Universal short program totals 51 subjects, with 13 Walter Lantz Cartunes. In addition there will be 13 name band musicals, two special featurettes and two series of eight subjects of Sing and Be Happy and The Answer Man, plus a new series entitled Juvenile Juries. Warners will have 84 subjects which includes 14 two-reel subjects and 70 one-reel. Sixty-six of these will be produced in color and 14 in black and white. MOTION PICTURE HERALD, NOVEMBER 9, 1946 13