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SNARLED ON BLOCK BOOKING RIDDLE, SEVERAL MAJORS PONDER PLAYDATE, NOT FILM, SALES
Seeking to Alter the System Instead of Revamping The Structure
New York — Intensive sparring about in the effort to surmount the block booking situation while, at the same time, it is, in effect, maintained, is inducing distributors to consider the sale of product on a playdate, rather than a straight picture, basis.
Before blood pressures rise or the arguments began to pop, it is the fact to report that this is merely an idea, which like others, is being talked over and torn apart in the desire, induced by what is viewed as the necessity, for remedial action of some nature quieting public and exhibitor protests over block booking by altering the system without revamping the entire modern structure of the business.
Furthermore, there is nothing on the horizon to indicate this idea, or any other idea, yet faces ultimate adoption. The significance in the consideration given to playdate selling rests largely in the fact that it conclusively evidences a wholesale desire on the part of the majors to arrive at some sort of a reasonable and rational solution to the block booking riddle.
The scheme, as suggested and as discussed for situations beyond the major circuits, would allow the buyer to contract from a given company an agreed upon number of playdates, the total as far as each distributor is concerned being computed generally on a breakdown of the product the theatreman purchased in his last year under the current system. A hypothetical case would be this:
If a theatre bought 52 from Paramount at an average price of $40 a picture at a total price of $2,080, a deal might be struck for the same number of pictures at $50 a date to a total of $2,600, or an increase of $520 on the deal. The uppage, however, would be viewed either as a direct increase or a premium for vesting in the exhibitor the right of playing whatever Paramount attraction he elected, at
He Figures Gov't Must Mean It
New York — Writes John Chapman in the Daily News:
"Ernie Holst thinks he overheard two movie magnates discussing the government's trust-busting suit against Hollywood. 'Do you think the government is serious?' queried one. 'Serious,' wailed the other. ’I got it direct from Washington— either we do as they say or they'll stop lending us the navy'-''
Tacit Pact on Theatre Halt Is Already Working Quietly
New York — The tacit agreement between major companies and the government precluding further theatre expansion moves until the current anti-trust suit is wiped off the federal court calendars has already been put into force. Boxoffice learns.
With the unwritten arrangement less than two weeks old, at least two affiliated circuits have turned down deals for new sites, abiding by recommendations of counsel not to broaden their activities “until we know where we stand in the government suit.”
One of the first instances is an offer made Loew’s by an independent exhibitor to pool his interests with the major circuit in a small town. The exhibitor approached circuit executives and espoused the benefits of such an arrangement. Under ordinary circumstances, Loew’s would have considered the proposition to its advantage, but, wary of the understanding reached with the government, declined to negotiate.
A second instance was that of a prominent independent circuit in the east and affiliated with Paramount in several towns. A site had been offered the independent group in a city where Paramount has one or two houses pooled. The independents circuit seriously considered the offer and then sounded out Paramount to join in building a new house. Paramount executives reminded the independent of the
Arnold and Films Once Touched
New York — Thurman Arnold, special assistant attorney general of the U. S. and in charge of the government's anti-trust suit against the major companies, their affiliates, officers and executives, had a brief — very brief — experience with the problems of the film industry back in the days of the NRA.
Elected to sit as alternate for Professor Wesley Sturges as impartial member representing t h e government, Sturges was sitting on the New Haven grievance board when word came from Washington that the U. S. supreme court had declared the NRA illegal. Sturges could not sit at the time, having been sent to the Philippines by President Roosevelt.
tacit agreement and tabooed the deal.
Counsel for major circuits have been aware of the government’s intentions of filing a special motion for a temporary injunction to stop further expansion. Rather than have another suit coupled with the one launched July 20, it has been agreed to lay off. However, where pooling deals come up for renewal there is no hesitancy in continuing them, if profitable.
the same juncture giving to him the right to ditch any he may so elect.
In the case of percentage pictures, it has been suggested the number set up might be split, the distributor designating half of the group and the exhibitor the other half. Deals of the same general ilk would be duplicated with other distributors until the exhibitor completed his buy on the basis of the total number of days of his yearly operation.
It is argued that, while it is true the exhibitor would sidetrack some product it is likewise held to be true that he would gladly give extended playing time to attractions either demonstrated to have clicked elsewhere or those that will, in the opinion of the man operating the theatre.
Since the total volume of combined distributors gross cannot vary and since the playdates must be filled with some company’s product, the theory further goes that no less in aggregate revenue will follow since mathematically it cannot. It is admitted some distributors in some situations will suffer a shrinkage, but it is
countered with rebuttal which sets forth they will gain additional revenue on extended playing time not calculated.
The biggest point involved in the whole setup, however, is the presumed stifling of complaints from any source that the exhibitor must play what the distributor gives him under the block booking buy.
There are many “bugs” in the scheme. Producers, for instance, argue pictures in which they have considerable investment thereby would have no guarantee of playing time; that the smaller pictures, popularly viewed now by all studios, as testing grounds for new players would not be accorded the widespread distribution out of which such talent might be developed. There is also a knotty something to conjure with in the matter of designated playdates and difficulty, likewise, is foreseen in setting up a workable system under such a system for percentage attractions.
Nothing may come of it. Nevertheless, the plan is being talked about in several high councils and the job of exploration into whatever its weaknesses may turn out to be is under way.
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BOXOFFICE :: August 13, 1933