Variety (Jan 1949)

Wednesday, January 5, 1949 Forty-third J^^fSIEfTT Anniversary PICTUliES SS Documentary Ads—A Piivh For Some Realism By ALAN HYIND Why don't th? hucksters get I the ads are of unfailing good hu- hep and introduce realism into | mor. Repairmen who come to the Mild 10% Dip In '48 Grosses Shows Pix Still Pack a Mass Wallop; That 40% Net I^ve Needs Fixing By IRA WIT The big fact iii the profits picture iOF 1948 *ais ---r- - . , „^„„ rivi„„v I i-.«niQ ir, fh« „A „ 1,1 * c .that distribution emerged from the 12 months just, magazine and newspaper adver-1 home in the ad world to fix some-, „t without overworking the black-ink bottle. The tisements? In other ^j, : thing and | selling end of the major companies made little or ^nnilJn 1 hortv pt/r riuLS "° ^oin, aftcr expenses and amortization of films was havedpcumen- body ever discovered by a talent i „„ armin^f imccoc Tnfl=,HAr, o wnnis. tary ads, as we have documen- tary films? The field for the documen- tary ad, I should think, is even broad scout, Ever notice how quickiy a laxa- tive fixes up the people in tlie ads? They can wake up bushed, hung- over, pooped, gaseoiis, dyspeptic and getierally disagi'eeabie after a night or a week on thfe tbwn. Then, presto!—a laxative and in er than, the I an hour or so they're ready to fiieldof thedoc-l start all over. It never takes any- umentary pici i body more than an hour to com- chalked up against grosses. Inflation and a weak- ening at the boxoffice really hit film peddling in '48. Distribs' grosses were ofl! some 10% for the year, not enough in itself to explain the 40% or more dive in net returns. But the 10% came off the top, With percentage rentals on big films a uniform prac^ tice, the dip made all the difference. Those addi- tional revenues would have been almost simon-pure gravy. The slide did not hit exhibition too, hard. When business is off, the first casualty is the staying power enthetlzed number indicates company's position in '47). 1948 $26,000,000 13,000,000 1. (1) Paramount:. , 2. ■ (2) Warner Bros. 3. (3) 20th-Fox ... 4. (4) Metro 5. (6) Columbia .. 6. (51 RKO 7. (7) Universal .. 12,500,000 6,500,000 565,000 500,000 2,000,000* 1947 $31,668,709 22,094,000 14,003,640 10,532,690 3,706,541 5,085,847 3,230,01T Alan Hynd beam the chasm between actuality and the World' of the ads is far wider* and deeper than that sep- arating life and its alleged re- flection a la Hollywood. Take the ad that features those Unless I am Lpietely emerge from a hangover 1 of films, Succinctly, this means a rapid turnover of far off the I in the world of ads. ■ ^. | product, which, in turn, spells higher amortization r I of films to be absorbed by distribution. The theatres i I were biibyed by the frequent program cliangeovers. And Where's the TV Set? In beer ads localed in barrooms I But it boded no good for distribution why 'not inject realism by insert- ing a quarrelsome, disheveled lush into: the group of gentlemen drinkers? Why don't the three- Narrowing down to the majors, their exhibition activities still poured respectable chunks of money into corporate coffers. BecaUlie -of this, net profits of the theatre-owning companies held up fairly * Loss • .In sizing the financial picture; both past and pros- pective, almost equally significant to the net earn- ings of the companies and the total grosses corralled through rental of films and boxoffice performancea of affiliated theatres. One of the $64 questions is ) how much actual loss of revenues have been suf- fered. Costs are subject to some tightening inter- nally but if the public has lost its interest in films as its primary mass source of entertainment, th« ailment becomes far more serious. two guys in the washroom, going . . „„, ,,,:„„ ^„ (v,. "'c mcumr-uvMiuiB cumiJcuiiea iimu uy lamy hysterical over the fact that their ';,?f ^"^f S% i,nn enter., a i'^"^'^ ^'"^'^ ^^''^ly Production-distrlbutioli outfits eJLployer has-just installed paper ^^^^ ,males a circle ! f,^!!^«,„l™f" I^^'^..^: 'J^^^}'^ towels. Not that the average guy i , , i f f.^^^^^^^^^ doesn't use and aPP'^^^^i.t ^ P^P^^ I mistakes him fir a deaf-mute in- towel. But would he make a paper towel the subject of an ecstatic conversation, with a fellow worker who happened in to wash up? I don't think so. I thing he would take the paper towel for granted and be jnore likely to concern him- self with what, if anything, his co- worker had in the fifth race, or his chances of putting the bite on the other guy for five until Friday. The ad, as is, just doesn't impress me as bearing the slightest resem- .blance to life. ,1 am intrigued by that folksy, middle-aged couple in the ads who, thanks to the wife's foresight years ago, now get a couple of hundred bucks a month for life from an in- surance company. Take a good stead of a man with speech being cute. The railroads would :get more of my busines.s if they showed me a picture of an occupied coach as is, not as they would like it to be. 1 would at least know that I was getting documentary honesty if an ad featured the interior of a day coach populated with dirty, mean- looking brats and seat hogs who occupied space for from two to four passengers. Why doesn't a truck company show one of their products driven by a sadistic s.o.b; with an ex- planation that the opinions of other drivers expressed by t h e driver of their truck do not neces- j the integrated companies were derived from ex- l.hibition. i Inflation—which played the heavy in '47r^encored as a menace in '48. However, the double^pronged . squeeze on the industry last year which cut down the amusement dollar and tilted production co.sts was partly met. Spartan efforts in Hollywood finally blunted one point of the fork. Therfigures bear out that the studios managed to cut production outlays - some 30%. But the rising HCL continued to grind down the ready cash which the public can dole out for its own entertainment. J Gross Off Not Too" S harply ] With this in mind,, a study, of the figures available at the'close of the year is reassuring if not entirely bright. No major company went into a real spin on gross revenues. The dip, in all cases, was noticeabla but not sliarply emphasized. Listed below are a comparison of grosses. Included is a pereentage ,of conversion of gross income into net. Co. Est. '48 Gross '"7 Gross % Par $171,000,000 $189,025,600 WB 151,415,000 164,643,000 20th ' Metro Col RKO U Conversion J15% 8% 8% ' 4% 1560,000,000 Vs. $96,000,000 look at them. They're off for some I sarily meet with their approval, happy-happy, never-never vacation I Airplanes in'the ads never en- land. They dress well. Judging I counter heavy weather, as they do from his chin and her waistline, ^ in actuality. And they are always they eat well. They have a good | filled, or nearly so. Why doesn't car, which presumably uses gas and ] a smart airplane company face oil and needs normal repairs. They the facts of life and show a crash must have a home of some kind to maintain while they are constant- ly traveling, for I have not seen a . trailer in the ads. I have seen the man from tiinei to time with ex- pensive-looking fishing tackle. ■ What I" am getting at is 'Tiow they do all this on $200 a month. Suppo,slng clothes and gas and oil and doctors and dentists and drugs • and everything but board and lodg- in an ad over the caption: "This happens, but not often." I honestly think that the likker people could do worse than show a guy in a D.T, ward over the cap- Net profits for all the majors; except United Artists,, will come to slightly less than $60,000,000 for the fiscal year when all the returns are in. Last year's big- score was $96,000,000, second highest in the history of the industry; Subtracted: from the;, 1948 total are losses reported by Universal. Peculiarly, the decline in the foreign marketrr-- predicted as the greatest threat posed for '48-^ played only a minor role in the retreating profits;'; Actually, foreign remittances held to within a per- centage point or two of last year. American distribs garnered $95,000,000 from across the borders for two years running. Against this, the estimate is $45,000,000 in '49, or half of what it has heen in the past 12 months. The Anglo-American film pact went Into effect, in mid-y^ar. During the first six months, this primary market was good for as much revenue as in the equivalent period of 1947. Overseas figures w;ere fattened by dollar remittances from several' coun- 162,000,000 186,267,8(80 180,000,000 183,948,900 Undisclosed 48,832,201 115,000,000 123,109,047 0.3% 41,000,000 47,000,000 0% Obviously, the theatre-owning companies have, by far, the greatest conversion of gross revenues into net. This factor, which became apparent to a lesser degree in 1947, indicates that costs remained better in hand in exhibition. Rentals on theatres and car- rying cliarges tilted only, slightly during the year while wages climbed somewhat more. On the' other hand, production was still saddled with expensive productions made during the peak cost period. All Reducing Debts tion: "He did not drink in modera- ; tries, including Italy and France; both had failed to tion I think that those ads that show a pretty girl getting wolfish over a fellow jitst, because he shaves or combs his hair or has his pants ing at some nice vacation-spot were pi-esscd are something less than free. The problem would still re-] tj-^g to life. May I suggest an ad in which the lady's eyes are aglow With promise just after she , has riffled through the geffttlemari's well-packed wallet? : I certainly can't subscribe to those ads; 'where the housewife, I looking ' extremely chic along main: Where can you vacation for less than $25 a week per person, room and board? Now if I were shooting an ad about two people living on $200 a month in these days I certainly wouldn't have a healthy, unwor- ried, well-dressed couple setting out In a shiny car filled-with ex- pensive - looking luggage. More likely I'd call for a setup showing a harassed, poorly-nourished pair, with her heels run down and his pants patched, standing on a highway somewhere, with knap- sacks on tlupir backs, trying to promote a lift. kick in for many years past. These factors kept the total to that of '47. Breaking down the total for the year by comr panics, it is again apparent that Paramount will be far ahead of the parade. Par's distrib wing turned in a small profit. Its main income again comes from, the company's tremendous theatre interests. Inter- esting feature of this year's derby is a very tight race for place position between 20th-Fox and Warner Bros. Latter is slightly ahead on th<e'basis of nine- month reports. ■ ■' . Estimated Net Profits about five in the afternoon, is mugging ■vvith joy over a pie she; has just taken from the oven. , At that tihie of day, the average housewife would be more authen- | tically pictured xasting a wo j giapee at the clock, obvipusiy w ' dering (1) whether hubby was bringing c oim p a n y, home (2) whether hubby would show up sober, or (3) whether hubby would Why is it that two out of three i sliow up period, fellows, in ads carry pipes? It Have you ever wondered about Estimated net (in all instances but Columbia which has reported its final total) are listed below.. For Universal, the estimate is for a loss. (Par- —— . ;..',•.,'•-...-, — ',, ■ , ' ■ —^—-f ' ■ ■ ' ' '• Survey of the fiscal year would be incomplet* without a quick look at the comparative bank obli- gations of the various majors. In this, the basically sound Condition of the film industry is nicely spot-* lighted. None of^ the companies has increased its obligations during the year while most have reduced them. , ■ ■ • ■,,.■;.,■■■■; ;>■,■.,, Warners, for instance, has continued pre-paying , its bank notes although its ; installment obligations do not actually begin until May 1, 1949. It has brought; indebtednesses, down to approximately _$15,000,000. Columbia has whittled its production loan to some $8,000,000 and Universal to $9,000,000. Paramount is an outstanding case. Originally obli- gated for: $10,000,000 on available credits of $25,- 000,000, Company owes only $5,500,000 which should be retire"d within a few months. RKO's indebtedness is $9,000,000: drawn from revolving credits, Funded debt of 20th-Fox is $5,000,000—only sum picked up fi'om available loans of $25,000,000., IVIetro has long- term loans but no current obligations to meet. Impetus of the war years, is still cushioning th» difl'icult postwar period. What the story will-be in 1949 must, in the final analysis; rest with Hollywood. If it turns out the right sort of pix at the right price, the demand is broad enough to give the industry a good return on its investment. Those Pipes! WALD TO MAKE 10 PIX FOR WARNERS IN 1949 Eric Johnston doesn't matter where they are-^ Jn . the;, bedroom in their undeiv wear, in a drawing room or just standing on a mythical pinnacle. staring confidently into the future, | the lights on the ads for beds, blankets; and other items related to sound sleep? I have. I wonder why the people in the ads always sleep with all Hollywood. I Heaviest production lineup ever, essayed by an individual producer i at; Warners is on Jerry Wald's; continued ;f rom page S -they usually have pipes. I didn't say they smoked pipes. Most of the pipes I see in the ads are not only Unlit, but they don't even contain tobacco, nor do they show any in- dication of ever having been filled^ 1 have nothing against pipes. I just don't think that the great ma- jority of men smoke them, that's reviewed! That Argentine steer would get a fbiir-bellow ratlhg; th« Iowa corn-fed job a one-bellow brushoff. Nothing cows our critics, and I'm sure Chicago couldn't. One of schedule for 1949 He' has ^lat^d , them would be sure to do a daily column about the amours of Armour, 10 films ^two more than his 1948 ^""^ "'^ could positively anticipate a smashing challenge to Swift & Co. ovstput ' j to change its.name because swift is too racy for family consumption. ScriDtinff on -spveral of the 10 ' ^""^ ^'^'"'^ ^^^^ ^ S'"'''"* ^''clu.sive stoiy it would, be when ahS has been comnleted wfth a ""^ ^"^'^ ^" ''^ ^he wrong pen. Sowing dedsfon'^dtie'^n 'the'lnu'anef as ^^^^ ""^ <="tics would have a good time at Tire dexterity of the ad folks i soon as casting is ironed out. Prop the stockyards who pour coffee or light cigarets ] erties include' "Case History," "A ' But I repeat, I love our critics, I admire their consistency. They fascinates me. When I light a cigaret for Somebody, I have to look at what I am doing. I just can't seem to make contact be- tween flame and cigaret tip while looking at and talking to someone behind me. And when pouring cof- Musical Comedy, " "Women With- never get'discouraged. They haye an absolute and utter'faith in out Men," "Storm Center," "Rebel i themselves which ought to serve us more mundane and crass and all. Why not, for the sake of va- fee or anything else I can never riety, have a dude in an ad spat-1 seem to avoid spilling the liquid tering the facade of a fashionable i all over the'place if I am, at one Sutton Place lean-to with a well-1 and the same time, pouring and aimed cheekful of cut-plug juice? j looking the other way. But the Have; you ever noticed how po-, I people in the, ads do it all the lite people are in the ads? Kids ! time. I've yet to see one who is in the day coaches of trains never looking at the vessel receiving the Du'ow orange peels at the , adult paissengers, or pour soft drinks down their necks. Everybody is well-bred, handsome, faultlessly turned out and well-behaved. , Truckdrivers In the ads are kind- ly, apparently soft-spoken., fellows liquid; Without a Cause," "Serenade,' "Safe Harbor," "Will Rogers," "The Thief of Broadway" and two untitled pix. His 1948 films were "Key Largo," "Johnny Belinda," "Adventures of Don Juan," "One Sunday Afternoon." "Flamingo Road," "Happy Times" and "Task Force," latter still lensing. 'Benny's* June Start Hollywood. George Auerhach has set June 1 A word of caution to anyone i as the starting date for "St.- Benny who takes up my suggestions for documentary ads. Watch your cast-, ing. In selecting a man to play a millionaire hanker, don't pick; bow. the Dip," in which legit star Mar- lon Brando, currently in "Streets- car Named Desire," makes his film some poor Old fellow who unmis- Who love not only their jobs but i takably i-eflects the truth that in all drivers of vehicles smaller' private life he's scratching for the . than theirs. Traffic policemen in' rent in Bego, Park, , It's Auerbach's Initial indie; pro- duction. He's due here around Jan. 10 to line up a director and rest of the cast. earthy people an example. Just think of it—^year in and year out, our critics hail the masterpiece motion pictures from abroad, and the American public stays away from them in droves; over in Europe, the counterparts of our critics condemn the tasteless, Crude and cheap pictures we make, and the European customers queue up for blocks at the boxofflces. One of the worst things about us in the motion picture business is the way we distort the Ainerican scene. We all know it. We're guilty of misrepresentation and we're doing more harm to our Gountry than we are good. How do we know that? Why, the critics tcU us so. So it must be true. They know the American scene better than anybody. Andwe know that must ,be so, because they say s6 tliemselves. Now you take a man like Harry Truman. He told me just the other day that he thought our pictures were ambassadors of good will and ha hoped we would be able to show more and more of them all around the world, I rather gathered that the President doesn't think our pic- tures are unrealistic and unfaithful to the American scene. But then he probably doesn't know the American scene and what the American, people are thinking. The pollsters and the critics were the only one* who knew what was going to happen on Nov. 2! Despite what some of our critics are saytag I feel, in my feeble littl» way, that our pictures might just happen to Contribute to a better wttrM I than the one in which we live.