Boxoffice (Oct-Dec 1962)

BEN MARCUS KEYNOTES ALLIED CONVENTION Calls for New Leadership^ Peaceful Coexistence ourselves to the revolution taking place in motion picture distribution than we can, as Americans, blind ourselves to the Castro revolution in Cuba,” Redstone said in conclusion. “And while some may feel that the Castro revolution in Cuba may fail, we can agree on one thing: things will never be the same in Cuba and we can agree on another— things will never be the same in motion picture exhibition.” In stating that exhibitors had a legal right to refuse product from a distributor who sold to pay TV, Stuart Aarons of Stanley Warner told the convention that similarly every exhibitor had a right to demand reasonable clearance from every distributor over a toll TV station and that clearance should be in the terms of multiples of months, not in terms of days or weeks. The Stanley Warner counsel said that such action should not be construed as being illegal. He said the fact that “all exhibitors, reacting to the same stimulus, take the same action is not equivalent of conspiratorial action.” He contended that the distributor had a legal right to refuse to sell pictures to toll TV and that no agency of the government had the legal right to force him to sell since the distribution of films was not a public utility. Aarons said exhibitors should not be frightened as to what they could do, but “to think in tenns of what you can do,” adding that “each one of you beset with the identical problem has obviously the right to take the same steps to arrive at a solution. The fact that the solution is the same does not make it conspiratorial or improper.” MGM '62 Net Declines, But Dividend Is Kept NEW YORK— Metro-Goldwyn-Mayer reports earnings of $2,589,000, or $1.01 per share, for the fiscal year ended Aug. 31, 1962, compared with the 15-year record high set in 1961, which had earnings of $12,677,000, or $5.02 per share. Despite the fact that the 1962 earnings reflected a greater decline in film production-distribution earnings than had been anticipated, according to Joseph R. Vogel, president, the board of directors voted the regular quarterly dividend of 50 cents per share, payable Jan. 15, 1963, to stockholders of record Dec. 21. 1962. He noted that, in accordance with regular accounting policy, all anticipated losses on films released in fiscal 1961, as well as all losses anticipated on releases after the fiscal year’s end, had been written off. Vogel noted, however, that prospects for 1963, in consideration of features either ready for distribution or currently being completed indicated an upswing in earnings which, he predicted, would continue in 1964, He mentioned that two of the biggest productions ever undertaken by MGM are just beginning their release as roadshow attractions, namely “Mutiny on the Bounty,” which has opened in New York and will open in 25 other cities, including London, before the end of 1962, and “How the West Was Won,” the Cinerama feature, which has just had its world premiere in London, both of which represent “potential grosses ranking among the highest in the history of the industry.” He said that “The Wonderful World of the Brothers Grimm” will become increasingly popular when it opens overseas. DETROIT — “Our future lies in the development of a more youthful and visionary leadership in all phases of our industry.” This is the challenge being presented by Ben Mai’cus, board chairman, as a keynote thought for the National Allied convention December 3-5 at the Sheraton-Cleveland Hotel in Cleveland. The statement is the gemi of a thought-provoking article imder the title of “Now Is the Time for New Leadership and Peaceful Coexistence,” which will be published in the Allied Merchandising Manual distributed at the convention. “The trend for this type of leadership is already moving ahead in production and distribution,” Marcus noted, citing as examples, the Mirisch brothers. Rube Jackter, Abe Schneider, Robert Benjamin, Stanley Kramer, Max Youngstein, Arthur Klrim, Sol Schwartz “and others like them.” UPHOLDS PRESENT OFFICERS As for National Allied, he said: “Ever since a new, young and vigorous leadership came into National Allied, a distinct change has taken place in our relationship with distribution. Where bickering, mistrust and confusion foimerly prevailed, this new leadership has created an atmosphere of serenity in our relations with distribution in the hope that on this groundwork, a sound basis would be built for mutual understanding and cooperation. “Progress must not be stymied by old hatreds, outmoded methods, and worn-out ideas. If our industry is to prosper, we must cast aside these derelictions and keep in step with our fast-moving civilization and adopt fresh and modern methods and ideas in all facets of our industry, be it production, distribution, exhibition or organization.” Marcus presented a three-point program to implement this line of progress: 1. Switch of production thinking toward more good boxoffice, but not high-priced, pictures and less concentration on the super-specials. 2. Research and development in both film presentation and merchandising. 3. A general program of theatre modernization by exhibitors. FOR GENERAL FILMS BUILDUP Elaborating on these points, Marcus said that production had concentrated on too many blockbusters with astronomical costs. Agreeing that the industry does need such pictures, he asked, however, that more thought and vision be given to planning the rest of the annual releasing schedules, with the aim for more product, and he called for the development of fresh new screen personalities. He urged that the industry embark upon a program of research and development of new mediums of film presentation as well as new methods of selling and merchandising motion pictures. “Much facelifting and complete modernization is needed in the nation’s motion pic ture theatres if they are to compete with other businesses and activities for the public’s leisure time,” Marcus said. “We are living in an era of sophistication and glamor and the theatres should excel over others in providing an atmosphere conducive to these characteristics.” Theatres, he added, must be encoui’aged to modernize “and this encouragement can only come through intelligent leadership in providing a steady flow of good product, sensible sales policies, a new and more effective approach in advertising and merchandising methods and, finally, a harmonious and cooperative effort by all divisions of the motion picture business.” National Allied president Marshall H. Fine, who doubles as convention chairman, said the Wednesday morning session (Dec. 5) will be conducted by Dr. G. Herbert True, recognized authority on merchandising motivation. Fine said Dr. True and his staff of six research, statistical, art and idea people had worked up a special presentation. Allied Artists Announces Three Production Deals HOLLYWOOD — Steve Broidy, president of Allied Artists, addressing the annual stockholders meeting here Wednesday (14) disclosed three deals for upcoming production projects. He announced that an understanding has been reached with Philip Yordan whereby AA will release in the Western Hemisphere and Japan Yordan’s production of “The 'Thin Red Line,” from James Jones’ widely hailed novel. Broidy also revealed that “Streets of Montmartre,” the story of artist Utrillo and Suzanne Valadon, his mother, the artists’ model who became a great painter in her own right, would be filmed starting in the summer of 1963 in color and widescreen, with John Huston producing and directing. Audie Murphy will be signed, Broidy continued, to star in a big color western, “The Great Gunfighters,” which producer Ben Schwalb will put before the cameras in about a month. “These three projects tied in with the upcoming (June, 1963) Blake Edwards production of ‘Soldier in the Rain’ starring Jackie Gleason and Steve McQueen, plus the deal with Leon Fromkess to make five pictures for Allied Artists during 1963; the current filming of ‘The Black Zoo’ in color and Panavision by Herman Cohen, and the Polan Banks-George Marshall production of Banks’ novel, ‘Maharajah,’ to be made in Pakistan in late 1963, are evidence of this company’s implementing of its production blueprint of the future,” Broidy said. All directors were re-elected. They are Broidy, George D. Burrows, Sherrill Corwin, Claude A. Giroux, Roger W. Hurlock, W. Ray Johnston, Edward Morey, Paul Porzelt and Herman Rifkin. BOXOFFICE :: November 19, 1962 5