Motion Picture Theater Management (1927)

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THE INDUSTRY AND THE THEATER 27 During the year 1926, approximately 749 feature motion pictures were produced and distributed. The future will bring reciprocal arrangements between American and foreign distributors, which will carry to every country the best of foreign-made productions. The distribution described herein is in reference to feature motion pictures : the same practice applies to those organizations that distribute short subjects. Motion pictures, either features or short subjects, are rented to exhibitors for the specific period in which they are used at each theater. Rentals vary in accordance with the size of the city or community, as well as with the type and size of the theater, and also in accordance with the run — first, second, third, etc. In most instances, the rental is a flat sum, which is based on the possible box-office receipts. These are scheduled by experts who are familiar with the film rental possibilities of the theater, and that figure is gauged against the national quota established for the picture to be sold. Each exchange center has some percentage against a national quota, established in accordance with its theater possibilities. In turn, each theater to be served has some part of the exchange center portion of the quota. In this way distribution organizations establish quotas which may be depended upon, and the sales possibilities tend to decide the amount of money that can be put into certain types of production. Box office possibilities of each type of production vary, and values are determined only through expert knowledge by both distributors and exhibitors. The latter buy pictures in groups, and frequently give preference to the organization which releases what they consider the best type of product. They then fill up the remaining, or open dates, with the next best product. Block buying is of great advantage to the exhibitor, because it guarantees his theater a definite supply of pictures of an established quality. Although pictures may be bought in groups, the price of each picture is contracted for specially. In some instances distributors receive a percentage of the receipts in lieu of a flat rental, and in other instances a guarantee as well as a percentage, depending on the local situation.