Boxoffice (Jan-Mar 1962)

Standard & Poor See To Appeal Court Decision On Hartford Toll TV Test Big Gain for Films NEW YORK — Increased theatre attendance and motion picture grosses were predicted for 1962 in the Standard & Poor analysis of leading amusement stocks, which noted that receipts for 1961 were the highest since 1948. The survey predicted that increased admission prices and more film releases would contribute to the gains in 1962, but it pointed out that despite increased gross receipts, earnings of major producers-distributors varied widely in 1961. Income from production and lease of older features for TV supplied a large portion of earnings for a number of companies, the survey pointed out, adding, however, that those firms that showed higher earnings did so largely as a result of improved theatrical output. “While public attendance at movies is showing a promising trend,” the survey continued, “following a sharp drop-off in the year's of television ascendancy, the production of a greater number of quality films remains the most important single factor in maintaining a consistent record of profitable operations.” The outlook for ’62 was viewed as especially favorable for such companies as Decoa Records, Universal Pictures and Columbia Pictures, while “results of MetroGoldwyn-Mayer and Walt Disney Productions should hold in the area of their respective record 1961 levels.” The survey saw American BroadcastingParamount Theatres network revenues as having shown the strongest growth in the industry in recent years and predicted further gains in 1962. It pi'edicted a return to profitable operation for 20th Century-Fox, and a sharp improvement from last year’s break-even level for Columbia. A.C.E. Films, Inc., Sets Up New York Headquarters NEW YORK— A.C.E. Films, Inc., newly formed production-financing organization sponsored by the American Congress of Exhibitors, has established headquarters in the Fisk Bldg, on West 57th St., between Seventh and Eighth Aves. The company now is occupying temporary offices in the building but will move to larger quarters on the 12th floor when remodeling is completed in about two weeks. Sidney Markley has just completed his first week as president of the new company, having resigned officially a week earlier as a vice-president of American Broadcasting-Paramount Theatres. He will be spending the next few weeks in traveling around the country in the interest of the new project. Hassanein Now Exec. V-P Of UA Theatre Circuit NEW YORK — Salah M. Hassanein was elected executive vice-president of United Artists Theati'e Circuit, Inc., by the company's board of directors March 7, according to George P. Skouras, president of the circuit. Hassanein was appointed vicepresident of United Artists Theatre Circuit, Inc. in September 1959. Previously he served as film buyer. NEW YORK — An appeal to the U.S. Supreme Court from a decision by a Court of Appeals which upheld the right of the Federal Communications Commission to license pay television on an experimental basis will be taken by the Joint Committee Against Pay TV. The Court of Appeals ruling gave a green light to the RKOPhonevision test in Hartford, Conn. Commenting on the court action, Louis A. Novins, president of International Telemeter, said that the decision was another judicial confirmation of his company’s conviction that pay television could not be stopped, adding that the decision “strengthens the traditional American way of trying new ideas, test them in the market place and let the public decide.” Philip Harling, chairman of the Joint Committee, said one of the principal points in exhibition’s writ of certiorari to the Supreme Court would be to seek to determine whether the FCC had the right to order a test of pay TV. He said the district court had affirmed the FCC’s stand on that point, but that exhibition felt that Section 303G of the Communications Act of 1934, which provided that the FCC had the right to authorize an experiment only insofar as the experiment was technically feasible, did not contemplate a pay TV experiment and that it never was the intention of Congress to have it do so. Harling said he was heartened by the decision that Phonevision would be held strictly accountable for the programming it promised at hearings in 1960 on the proposed Hartford test. “Phonevision will be required to fulfill all the rash promises and the pie-in-thesky programming claims it made to the FCC,” Harling said. “They are committed by the court decision to present ‘legitimate MPAA to Name Successor To Montague at COMPO NEW YORK — A successor to the late A. Montague as the Motion Picture Ass’n of America’s representative on the governing board of the Council of Motion Picture Organizations may be named on March 26. The quarterly meeting of the MPAA board of directors is scheduled for that date and it is reported that the COMPO appointment will be one of the topics on the agenda. Ben Marcus and Sam Pinanski are the two other members of the triumvirate and were appointed by their respective organizations, Marcus by Allied States Ass’n and Pinanski by Theatre Owners of America. Distributors Set for Lloyd Film HOLLYWOOD — Columbia Pictures will distribute “Harold Lloyd’s World of Comedy,” a feature consisting of highlights from the comedian’s films, in the foreign market. Continental Distributing is handling release in the United States. plays, ballets, operas, concerts, children’s films, art films, educational features and sports.’ This is the type of programming which is now available on free television and which appeals to such a small minority that the commercial success of pay TV must be jeopardized.” Harling said the requirement for close accountability of programming would dash the hopes of pay TV proponents for the free hand that they had anticipated in their programming. He said that if and when the experiment actually begins, Phonevision would meet the same fate of financial losses which, he said, were being suffered by Telemeter in Canada. Connecticut Exhibitors Show Cautious Optimism for Test HARTFORD — Initial reaction by the Connecticut motion pioture theatre interests to Washington disclosure of the “GoAhead” sign for WHCT-TB’s pay TV experiment here has been marked by an atmosphere of cautious optimism. Bernard Menschell, president of Outdoor Theatres Corp. of Connecticut, and chairman of the Anti-Toll TV Committee of Connecticut — his fellow members are Maurice Bailey of the Bailey Theatres and Max Hoffman, Connecticut Theatres Corp. — reminded Boxoffice that he has discussed the theatrical side of pay TV to interested groups, on a voluntary basis, and is thoroughly willing and prepared to speak further. He underscored the obvious fact that even when pay TV becomes an actuality in Connecticut’s capital city, the project will be conducted strictly on an experimental basis — not necessarily designed for full market impact or commercial gain. Bernard Levy Replaces Sid Markley at AB-PT NEW YORK — Bernard Levy has been appointed executive liaison officer for the southern theatres of the American Broadcasting-Paramount Theatres circuit. Levy will assume the duties formerly handled by Sidney M. Markley, who recently resigned from AB-PT to become president of A.C.E. Films, Inc. Levy was in private law practice in New York before joining the legal staff of Paramount Pictures in 1946. Since January 1961, he has been executive assistant to Edward L. Hyman, vice-president of ABPT in charge of theatre administration, north. A graduate of Brooklyn Law School, Levy also attended Long Island University. Meanwhile, Everett H. Erlick, vice-president and general counsel of AB-PT, has been elected a member of the board of directors. Erlick joined AB-PT last year after ten years with Young & Rubicam, advertising agency. BOXOFFICE :: March 19, 1962 9