Boxoffice (Jul-Sep 1939)

COLUMBIA RAPS BOOKING, BUYING COMBINES; SAYS MUST UEAL WITH THEM OR FACE LOSSES ^Hollywood, the Honeyed Land? Noi at All, It's Exhibition Hands of Combines New York — Weekly salaries in four and five figures and all the rest of it notwithstanding, it isn't Hollywood that is the golden land of opportunity and profits in this business. Not at all. It is exhibition with its 48-state spread. At least, Columbia believes so and, believing it to be, tells the government about it in its answer to the all-industry suit. To wit and as follows: "The motion picture exhibitors throughout the country, large and small members of the exhibitor combinations and non-members of combinations, have made tremendous sums of money on their investment. During the past seven years of depression, very few exhibitors were forced out of business, but on the contrary their business has increased and their properties have enhanced in value. While the producers of pictures take all the risk and hazard (in recent years several producers have been forced into bankruptcy), the exhibitors take little or no risk." Sells No Exclusive 1st Runs, Distributor Tells Gov't. New York — When there are two first run theatres and each desires a split of Columbia’s product on an equal basis, the distributor sells this way whether the exhibitors be affiliated or independent or independent circuits, it is revealed in a further study of the company’s answer to the government’s bill of complaint. “The fact is no exhibitor contracts for Columbia exclusively, nor is he compelled to. Further, no exhibitor is forced to take every picture produced by the company.’’ This, of course, refers to the ten per cent concellation in contracts. Columbia insists it has never forced an exhibitor, whether independent, an independent or affiliated circuit to take short subjects. Admission is made, however, that this type of product is sold together with the balance of its season’s program. “If Columbia were unable to license its short subjects at the commencement of the season at the same time it licenses its features and westerns, it would have to give up the business of producing short subjects. This would seriously curtail its Lists 5A00 Closed Cities in U. S, New York — There are over 5,400 cities in the country, each with less than eight theatres where the situation is closed and where all of the houses are owned either by an individual or a corporation. Columbia cites this in its answer to the government suit, in emphasizing the number of accounts it is unable to sell competitively. business and would restrict rather than encourage competition in the field of production of motion pictures.” As to arbitrary designation of playdates, the distributor has this comment to make: “Much as the defendant would like to have its pictures exhibited on a percentage basis Saturday, Sunday and holidays, it has had little success in inducing exhibitors to accept such arrangements.” An explanation for granting protection is that “competition is so keen in the distribution of motion pictures that if Columbia should refuse to give the necessary clearance to first run exhibitors, whether they be independent, independent combinations or affiliated exhibitors they would refuse to take the product of Columbia and Columbia could no longer carry on its business successfully, because its main revenue is derived from first run exhibitors. “The practice of granting protection to first run exhibitors is not one that Columbia insists upon, but rather that the exhibitor insists upon and which Columbia believes he is entitled to.” Independent exhibitors are not compelled to pay arbitrary, unconscionable or discriminatory film rentals in order to procure Columbia product second run in competitive areas the company claims. “There is no such discrimination and the prices paid are not arbitrary or unconscionable.” The distributor then goes on to tell how boxoffices are checked, adding “even with that right, producers have often been defrauded of large sums of money by reason of false boxoffice reports.” No exhibitor was ever forced to shut down his theatre because of rental fees, (Continued on page 20) New York — Columbia takes a rap at exhibitor combinations, buying and booking combines which, it declares in its answer in the government suit, has put the company in a position of either dealing with them or being left out in the cold. “In many instances in the past few years,” the answer states, “Columbia has actually been boycotted in certain territories by the local exhibitor combinations.” In the past ten years these combinations have grown in number and strength, the distributor adds. “For example, in New York City, there are a number of such exhibitor combinations, each controlling more than a score of theatres.” Then citing how the booking and buying combines seek to use their power by demanding low rentals, the answer states, “If Columbia refuses to deal with such exhibitor combinations upon their terms, it is threatened with a boycott. As a consequence of this practice, Columbia has been compelled to license its pictures to these exhibitor combinations upon terms very harsh and inequitable to it, and such exhibitor combinations have obtained Columbia product for far less than a fair rental value.” Other instances where exhibitors virtually dictate terms are cited. Foreign Producers More "Competition" Now New York — Competition from foreign producers is rapidly and steadily increasing. For the first six months of 1938, French studios produced 55 films and 64 additional now are in production, Columbia states in its answer to the government all-industry suit. Improving the quality of French production, Columbia says, is the influx from (Continued on page 20) Asserts Cant Stop Overbuying New York — It knows no method of putting an end to overbuying because this would jeopardize its business if salesmen insisted upon knowing what product the exhibitor had bought. So argues Columbia in its formal reply to the government in the all-industry suit. "If this practice be unlawful, the culprits are the exhibitors and not the answering defendants," is charged. BOXOFFICE :: August 26, 1939 17