Boxoffice (Jan-Mar 1941)

Theatre Attendance Down Five Million (>' ft Introduce Anti-Decree Bill * >j St. Paul, Minn. — Sponsored by Northwest Allied, a bill compelling distributors to license a full season’s product and granting exhibitors a 20 per cent cancellation clause has been introduced in the legislature. The first of its kind, the text follows: New York — Approximate weekly theatre attendance during 1940 dropped for the first time since 1937 to 80,000,000, or 5,000,000 less per week than had been estimated for the prior three years, according to Film Facts, annual statistical compilation issued by the MPPDA. Approximate annual payrolls are estimated at $406,560,000, of which $250,000,000 represents payrolls for theatres, $129,000,000 for production, and $27,560,000 for distribution. The 1940 figures compare with an aggregate annual payroll in 1939 of $370,060,000, of which $250,500,000 went to theatres, $27,560,000 went to distribution, and $92,000,000 for production — a difference and increase in the latter category of $37,000,000 during 1940. Feature films approved in 1940 by the Production Code Administration totaled 523, which included 44 of foreign origin. The PCA also approved seven reissues and 707 short subjects. This compares with 1939 figures of PCA seals given 596 features and 715 shorts. Drop in Employment Employment in exhibition and production dropped during the year in the tabulation that shows: exhibition, 241,000 compared with 245,500 in 1939; production, 28,500 compared with 29,500 last year. Distribution employment remained at the same level of 12,500. Grand total for 1940 is 282,000; with 287,500 for 1939. Estimated capital investment is unchanged at $2,050,000,000. Broken down, it is estimated at $1,900,000,000 in theatres; $125,000,000 in studios and $25,000,000 in distribution. Among the new facts brought out in the compilation are that there are 10,031 theatres showing double feature programs, while 6,972 show single bills. In percentage equation it means that duals are shown in approximately 59 per cent of all theatres — 30 per cent every day, 29 per cent part of the time. Average Admission Is 23 Cents Estimated average theatre admission is given as 23 cents. A further explanation in respect to attendance states the average theatre is open for business about 10 hours a day and takes in 60 to 85 per cent of its daily receipts in one hour, usually between 7:30 and 8:30 p. m. Daily average attendance is estimated as follows: Monday, 10 per cent; Tuesday, 10 per cent; Wednesday, 10 per cent; Thursday, 10 per cent; Friday, 15 per cent, Saturday, 20 per cent; Sunday, 25 per cent. As has been the case in the last few years, 35 per cent of every dollar received at a theatre goes for film rental, with the remaining 65 per cent left for local theatre expense. Stage plays, as a trend, passed through their peak year in 1940 as a production source, when 51 films of this type were made as compared with 34 in 1939. Other statistics reveal short stories receded from 59 in 1939 to 21 last year; biographies dropped from 17 to eight; novels decreased from 127 to 109 and original screen stories Whereas, the motion picture industry is made up of three branches, namely, production, distribution and exhibition; and Whereas, the production and distribution branches are dominated and controlled by eight major companies with great economic power and exhibition is accomplished through two classes of theatre owners, namely, those wholly owned or affiliated with the producer-distributors and the independent exhibitors; and Whereas, the major producer-distributors lease and distribute substantially all of the feature motion pictures exhibited in the state of Minnesota and the other states of the union; and the needs of the independent exhibitor require that he license or lease feature motion pictures from substantially all the major-producer-distributors; and Whereas, by reason of arbitrary terms and conditions imposed by the producerdistributors, the independent exhibitor has been: (a) compelled, as a condition precedent to licensing feature motion pictures, also to license short subjects, newsreels, trailers, serials, re-issues, foreign and western pictures far in excess of his needs or requirements; (b) unable to cancel feature motion pictures injurious and damaging to his business, and therefore compelled to play pictures undesirable and harmful to the public and Whereas, the long established trade practice of licensing feature motion pictures for a full season (one year) is essential to the best interests of the producer-distributors, exhibitors, and the public; but the above conditions imposed by the producer-distributors have subjected the independent exhibitors to unfair disadvantages, preventing him from responding to the community and local public influences and preferences with respect to the selection of desirable feature motion picture films and are inimicable to public welfare and against public policy, now therefore, were at 323, four less than 1939. Titles registered during 1940 were 3,124, bringing the number in the release index up to 42,866, the latter figure representing the title of pictures released since the industry records have been maintained. The 1940 record of the Advertising Advisory Council is represented as follows: Out of 98,333 stills submitted, 1,217 were discarded or retouched to meet code standards. Of 9,011 exploitation ideas, only eight were unsuitable. Out of 1,759 posters submitted, but 25 were changed and there were but six revisions in 1,027 trailers. Of 11,256 advertisements, only 240 were rejected or revised. No revisions were necessary in the 10,646 publicity stories submitted. A total of 4,796 miscellaneous advertising accessories cleared through the council with changes in only 16. Be it enacted by the legislature of the state of Minnesota: section 1. — Definitions, for the purpose of this act. Section 2. — No distributor shall license feature motion picture films to an exhibitor in this state unless the license provider: (a) that all the feature motion picture films, which such distributor will license during the exhibition season or the unexpired portion thereof shall be included; (b) that the exhibitor shall have the right to cancel a minimum of 20 per cent of the total number of feature motion pictures included in such license. Such cancellation shall be made proportionately among the several price brackets, if there be such price brackets in the license agreement. Any number of cancellations to which an exhibitor is entitled may be made from the lowest price bracket at the exhibitor’s option. The right to cancellation shall not be effective unless the exhibitor exercises such right by giving noace thereof, to the distributor, within 15 days after being notified of the availability of a feature motion picture. The right to cancellation may be waived by the exhibitor before or after the making of a license agreement, but such waiver shall be in writing. Section 3. — No distributor shall license feature motion picture films to an exhibitor in this state upon the condition that the exhibitor must also license short subjects, newsreels, trailers, serials, re-issues, foreign and western motion picture films. Section 4. — Any provision of any license which is contrary to any of the provisions of this act is hereby declared to be against public policy and void. Section 5. — Every person violating any provisions of this act or assisting in such violation, shall be guilty of a gross misdemeanor, and upon conviction thereof shall be punished by a fine not exceeding $1,000 or by imprisonment in the state prison for not more than one year, or both. In the case of a corporation, the violation of this act shall be deemed to be also that of the individual directors, officers or agents of such corporation who have assisted in such violation, or who have authorized, ordered or done the acts or omissions constituting in whole or in part such violation, and upon conviction thereof, any such directors, officers or agents shall be punished by fine or imprisonment, or both, as in this section provided. Section 6. — If any provision of this act is declared unconstitutional or the applicability thereof to any person or circumstances is held invalid, the validity of the remainder of the act and the applicability of such provision to other persons and circumstances shall not be affected thereby. The term “exhibition season” shall mean a period of 12 months as may be selected by the producer-distributor; provided, however, that there shall be no lapse of time between the termination of one season and the beginning of the next. G BOXOFFICE :: February 22, 1941