Boxoffice (Oct-Dec 1939)

SELF-SUFFICIENCY IN HOME MARKET NOW AN OBJECTIVE; A WAY TO DO IT BEING SOUGHT Ever Tightening Situation Theatre Busiziess ill England Abroad Reason; Count tt i i rrr Out Foreign Income Holds tO 70 % of NoTHlIClI New York — Confronted by an evertightening situation abroad and more or less resigned to a lower freezing point cn remittances from Great Britain, serious thought is being turned toward a selfsufficiency program for the industry. At least one major company, Boxoffice learns authoritatively, now is re-shaping its entire structure in reaching for a goal two months off when it proposes conducting its operations on the basis of domestic income. This organization, it is understood, is thoroughly aware of the difficult course it has charted for itself and realizes the huge task of readjustment which it has undertaken. Nevertheless, it is proceeding towards its objective on the theory its economic future rests most solidly on self-sufficiency in the home market. No Sales Effort Letup The plan does not provide for any abatement of sales efforts in foreign markets. This' still important end of the enterprise will continue and. in fact, will be stepped up in those overseas areas not affected by the European war. While there is nothing in the calculations to indicate foreign returns will be reduced to anything approximating a vanishing point, the plan is to view such returns as contributors toward whatever gravy train may come out. Several domestic sales managers, voicing their opinions privately, reflect an identical point of view. Tliey are, at the same time, aware of the added problem this would wrap around their shoulders, but appear confident self-containment is possible provided Hollywood does its share by delivering attractions of outstanding merit turned out at a cost which would make possible a return of the negative charge, plus a profit, from the United States and Canada. $1,000,000 Budgets Termed Safe A re-check by Boxoffice substantiates again the conviction on the part of responsible distribution executives that pictures up to $1,000,000 are safe and comfortable investments for Hollywood to undertake. Anything above that figure is regarded as an out-and-out gamble which they, as the men in charge of sales, are loathe to underwrite. A current concern which mars any movement toward self-sufficiency in the domestic market is Canada. Executive! here are frankly worried by two factors. One is the future status of theatre business in the Dominion as the war grows older. Second, is the ever-present problem presented by embargoes on money and fluctuating exchange. Universal Cultivating Domestic Mart New York — In view of shriveling returns from foreign markets. Universal has decided to base future operations within the income of the domestic market, William A. Scully, general sales manager, informed division and district managers at a weekend meeting here. Waste is to be eliminated and economies are to be made without impairing salaries or disturbing present personnel. With 8,500 accounts sold last season, division and district heads are now after a goal of 10,000 for the new season. The sales force will stress added playing time and getting the most out of each picture. Univ. Breaks Away From Saenger Chain New York — Universal has broken with the Saenger circuit in New Orleans and is selling away to independents. Reports of the break are confirmed by William A. Scully, general sales manager, who stated “we could not get the money we wanted for our product.” Frank J. A. McCarthy, who has been in Dallas closing the Griffith circuit deal, has returned to New York. William Heineman, western division manager, also is back from a western trip. Both division heads attended a weekend session here with A. J. O’Keefe. Los Angeles: E. T. Gomersall. Chicago; Pete Dana, Kansas City; Harry D. Graham, Atlanta; Dave Miller, Cleveland, and A. J. Herman, New York, district managers, who saw the new uncensored version of "The Road Back.” Scully, presiding, pointed out new product and discussed conditions as they are in various parts of the country. Preliminary reports from San Francisco and Portland, Ore., on “All Quiet on the Western Front” show very good results, according to Scully. Frank Thomas Murray, home office statistician, has been promoted to manager of branch operations, and O. C. Binder is now manager of exchange maintenance. Scully planned to leave over the weekend for Dallas. New York — Theatre business in England maintained a 70 per cent of normal level at the close of the fourth week of the war, home office foreign executives, in constant contact with conditions abroad, report. Outstanding pictures show above average takes in the theatres, it is stated, and there is very little likelihood of British grosses returning to complete normalcy during the fracas. Efforts are being continued to stagger West End closings. Eventually, it is hoped, all theatres in the zone will be permitted to close at 10 p. m. Tension among pedestrians at night is easing up with blackouts, while still taken seriously, are regarded generally as routine. Theatres are fairly well patronized at night but afternoon attendance still lags. Home office executives are growing more optimistic, but with fingers crossed, as the weeks pass, about conditions in England and France. Shipments are continuing on American vessels and there have been no broad currency restrictions. However, it is expected there may be limitations imposed on monetary shipments in the near future. Delays in film and remittances from the other side at this time are expected in view of the general conditions prevailing. Optimism is tinged with more than a slight apprehension should something occur to disrupt the comparatively normal flow of operations, it appears. This stems from the observation that theatres are being permitted to remain open, under restrictions, in England and France on the presumption that as long as there are no air raids from enemy bombers there is no reason to deprive patrons of film entertainment. “However,” one foreign sales head points «ut, “the whole situation can be disrupted overnight and we stand a good chance of being thrown for a substantial loss if England should suddenly experience an air raid. Even a few false alarms in widely scattered regions can do much to wipe out the confidence that exists there at present. Theatres will close and then take plenty of time before reopening.” May Teach French Women To Operate Projectors Paris — Shortage of jirojectionists is a major concern among French exhibitors. All theatres in France are open with the exception of those which find it difficult to secure operators. The dearth is bringing about a move to open a school and teach women the art of the projection machine and to fill in where men have been called to arms. 4 BOXOFFICE ; : October 7, 1939