Motion Picture Herald (Oct-Dec 1956)

Joint Effort Needed to Expand Film Markets Around the World, Lombardo Declares Here HERALD picture WHY HE'S HERE. Goffredo Lombardo, head of Titanus, talks to news reporters Tuesday morning at the Plaza, New York. With him, Titanus Films public relations director Bob Howard, and, right, general manager Franco De Simone. Magna Shows Good Gains , Holders Told Magna Theatre Corporation announces that its operations are currently proceeding so satisfactorily that the company will retire $2,000,000 of its $6,000,000 debenture indebtedness by March, 1957, and anticipates retiring the remaining $4,000,000 before the next annual meeting in October, 1957, more than two years in advance of the due date which had originally been set. Independents Negotiate The announcement was made by George P. Skouras, president of Magna, at the annual stockholders’ meeting in New York last week. Mr. Skouras also announced that Magna is currently negotiating with independent producers seeking to make films in the Todd-AO process. Along with Magna’s vice-president and treasurer, A. E. Bollengier, Mr. Skouras added that company revenue during the eight-month period ended September 30, 1956, totaled $3,645,000, while expenses added up to $1,408,000 for the period, enabling the distribution organization to have an excess of $2,237,000. It was reported to the stockholders that Magna expects to finalize an agreement with one producer to use Todd-AO momentarily and that Magna would both invest and distribute the film “if the deal goes through.” Magna is also involved with Rodgers & Hammerstein Productions in making “South Pacific” in Todd-AO and CinemaScope, along with 20th Century-Fox, which is also investing in this film, Mr. Skouras told the stockholders meeting. “South Pacific” is scheduled to go into production next year according to present plans. Cites Installations Mr. Skouras told the stockholders that at present there are 30 theatres equipped for Todd-AO in the U.S. and Canada and that American Broadcasting-Paramount Theatres will install Todd-AO equipment in five more theatres shortly for the engagements of “Around the World in 80 Days.” He added that there should be about 50 installations by the time “South Pacific” is released. He also briefed stockholders on the agreement with 20th-Fox and RKO concerning domestic and foreign distribution of the CinemaScope version of “Oklahoma!” He added that the domestic deal with 20th-Fox, in which Magna will receive $2,500,000 by next March, will enable the company to pay off its debentures and bonds at that time. Mr. Skouras also explained the Magna tieup with Todd-AO Corp. and the com Internationalization of film industries to expand the potential markets for each country is the logical hope for the revitalizing of lagging production around the world, according to Dr. Gofredo Lombardo, president and owner of Titanus Films of Rome. Dr. Lombardo is in this country to negotiate with several major studios for joint productions. Increased co-production among various nations, in his view, is the first step toward internationalizing the film making industry. In New York this week, he reported that discussions over six such projects had reached the “definite” plans stage with “more than one” American company. “We have decided to invest $5,000,000 to $6,000,000 in American coproductions this year,” he announced. “This includes one picture to be made here in this country.” Titanus, the largest motion picture studio in Continental Europe, is also a major distributor of American product in that area. Dr. Lombardo explained that the increased cost of making a picture in the U. S. would be offset by the acquisition and distribution of the film in Europe through its own organization. Dr. Lombardo, 36, assumed the presidency of Titanus in 1951, succeeding his father, Gustavo. One of his principal pany’s nickel royalty provision on every admission ticket sold. He said this contract provision “would be one revenue source which would bolster our business in the next year.” The Magna stockholders approved a management proposal for a five-year contract for Mr. Skouras, effective September 17, 1956. By a vote of 2,012,485 to 8,526, stockholders approved the $500 per week contract, which also provides for achievements in the Italian picture industry lies in the fact that he was the first to sign actors, writers and directors to exclusive term contracts. This was a unique move in Italy, resulting in greater continuity and uniformity of production and insuring greater stability in the operations of the company. The assets of Titanus, which was founded in 1928 by Dr. Lombardo’s father, include two large production studios, two dubbing studios, two cutting and editing laboratories and a graphic arts plant. In addition, Titanus has 11 foreign exchanges and a chain of theatres in Italy. Currently, the company is producing three specific types of motion pictures, he said. He classed them “Italian,” “European” and “American” films. Each type was made for a specific market, he explained, but was also offered to the others. “Thus making it possible to amortize the product in many markets.” A European union of film producers is needed to bolster the industry by eliminating current tariff and customs barriers and permitting production units to cross freely from one country to another. Films made under such an arrangement would, in effect, be the property of all the countries. This would give each film a potential audience of 280,000,000, he said. Mr. Skouras to have a stock option up to 50,000 shares at $2.34 per share. Elected as directors of Magna Theatre Corp. were Mr. Bollengier, Oscar Hammerstein II, Herbert P. Jacoby, James M. Landis, Charles B. McCabe, Richard Rodgers, Edward H. Rowley, Joseph A. Seider, Mr. Skouras, Raymond V. Wemple, James F. Burns, Jr., and Frederick M. Warburg, the latter two representing debenture holders. MOTION PICTURE HERALD, NOVEMBER 3, 1956 25