Boxoffice (Apr-Jun 1939)

20TH-FOX SALES POLICY REMAINS FLEXIBLE; CALLS FOR BETTER TERMS RIGHT DOWN LINE Kent and Wobber Tell What Chicago — In brief, 20th Century-Fox on its sales procedure and policies for 1939-40, as outlined by Sidney R. Kent and Herman Wobber to the convention here, included these highlights: Flexible sales setup, but with definite veer toward higher rental and 40 per cent asking on top bracket films, number of which is to be increased by two over this year. No controversial pictures to be made, the company feeling it is "definitely in the entertainment business." No 16mm reductions of any pictures, in order to thwart non-theatrical competition. Continued fight to keep stars off the radio. No forcing of shorts and news with features. To seek more money for the Sol Wurtzel group, including Chans, Withers, Jones Family and others. The men were instructed to sell these in series. There will be no "chiseling" on any final trade practice agreements and 20th Century-Fox "will follow the rules." Foreign Markets Worry Kent; Says U. S. Must Fill the Gap Fitting Terms to the Situation Instead of Formula Plan Chicago — Twentieth Century-Fox will continue its flexible sales policy again for 1939-40, following along the lines it has used the last few selling years. Definite instructions as to the flexibility of the brackets and percentages were given the district and branch managers at a last-day meeting that concluded the convention held here. It is understood allocation of brackets will follow closely that of this year’s setup. However, on top pictures such as “Tire Rains Came,” “Stanley and Livingstone,” “Brigham Young,” and others, tentative plans are to step up the highest percentage group from this year’s four and six, depending upon territories, to six and eight respectively for 1939-40. Present plans call for no special productions to be made that will necessitate separate contracts. Top percentage sought will be 40 per cent on the upper bracket product. Follow Current Setup While the top bracket group will be flexible, the other groups will more or less follow the setup used this year of 10, 16 and 16, designated in each section; but still with percentage figures based upon the possibilities of each situation. “Fitting the terms to the situation and not the situation to a set formula,” is one manner in which the company’s policy has been termed. At the same time, Herman Wobber, general sales manager, made it clear not only to the managers, but also to the salesmen in general convention sessions, that the company will definitely seek larger film rentals. Then entire confab was given over to the general theme that 20th Century-Fox performance for this year bespeaks higher rentals on the top pictures for 1939-40. Every district in the U. S. and Canada has been priced, he said, and: “ ... we want the goodwill of exhibitors but we cannot accept it through price concessions for our product. We are entitled to Budget Tips Scale At $38,000,000 Chicago — While no production budget was discussed here at the 20th Century-Fox convention, it is understood that prior to the meetings here, studio confabs among Sidney Kent, Darryl Zanuck and Herman Wobber set the final figure at approximately $36,000,000. This figure includes the five top films promised at $2,000,000 each. asking prices based on our past performance for the great product we delivered this year. Go out with confidence that yours is the greatest product there is,” were his final instructions as the men left Chicago for their offices. Confident of coming through for the sales force in a big way, Darryl F. Zanuck, in a telephone address to the convention said “neither business depressions nor war scares will stop us. Mr. Kent has given us all the money we need and nothing will lick us. “You can have all the stars, the trick titles and trick showmanship there is, but if you haven’t got story properties, you haven’t got a thing,” he said. “But, we certainly do have story properties, and I am sure no company ever opened its new season with such a list of properties as we have. There isn’t one company, believe me, in the industry that wouldn’t give all they’ve got to own our list of properties.” Expands Newsreel Area and Service Chicago — With the establishment of trans-Atlantic flying service by PanAmerican Airlines this summer, Fox Movietone News is planning to inaugurate 36-hour news coverage on all European events of importance to U. S. theatre accounts for the 1939-40 season, it was revealed at the 20th Century-Fox convention here. The same service will be offered English and continental European accounts on American news events. The newsreel is planning to expand its sectional and local news coverage. Such events will be scored by sectionally wellknown radio commentators and released in that territory the day the story breaks. Chicago — Definite indication that the major companies fear still more shrinkage in foreign revenue during the 1939-40 season and will seek to make this up by getting every possible dollar out of domestic rentals was emphasized by Sidney R. Kent, president of 20th Century-Fox, at the company’s convention here. Only a few weeks ago, A1 Lichtman, assistant to Nicholas M. Schenck, told the Metro convention the same thing here. Kent, referring to this problem “entailed in setting the budget for the forthcoming year,” remarked: “Shrinkage of foreign exchange is indeed a problem. If the same business done from January 1 this year was done last year abroad, your company would have earned $100,000 more per week in the overseas market. The foreign department is doing as big a volume, and bigger in many cases, than it did last year, but the shrinkage and other matters have been cutting into its revenue to the extent of $100,000 per week — and that means the threat of a loss of $6,000,000 in revenue for the year. Cites “Make-Up” Need “Thus in deciding on the budget we did, we placed a tremendous responsibility on your shoulders.” He then reiterated that the men must make up as much of this loss in foreign revenue as possible by getting the best possible deals in every situation in the United States and Canada. Speaking further on production costs as based upon expected returns in rentals, Kent said: “I believe money spent on production is limited by what can be earned. And I don’t think that we have reached the ceiling in our business.” The 20th Century-Fox president pointed out, too, that the film business is the only < Continued on page 22) 10 BOXOFFICE :: April 8, 1939