Boxoffice (Oct-Dec 1962)

AMERICAN INTERNATIONAL SETS 24 FEATURES FOR 1963 RELEASE Long-range production and distribution plans for American International were outlined by James H. Nicholson, president, at a press luncheon November 20 at the Tower Suite’s Hemisphere Club in New York. In the photo are AIP executives, left to right: George Waldman, New York, Buffalo and Albany franchise holder; Ed Heiber, regional manager; Nicholson, and Howard Mahler, New York, Buffalo and Albany franchises. Will Double Company's Schedule for 1962; New IBM System NEW YORK — American International will make great strides in 1963, both in a total number of releases which will double the company’s schedule, and by installing a complete IBM system of digital computers which will reduce the company’s releasing operation overhead, according to James H. Nicholson, president. AIP’s 1963 release schedule will include 24 features, double the number released in 1962, mainly by handling the U.S. distribution of all forthcoming Filmgroup product. The deal was made by Nicholson and Samuel Z. Arkoff of AIP with Roger Gorman and Harvey Jacobson, president and executive vice-president, respectively, of Filmgroup. ‘BATTLE’ WILL BE FIRST The new distribution agreement will start with Filmgroup’s “Battle Beyond the Sun,” a science-fiction thriller in color and VistaScope, while the second production will be “The Teri'or,” in color and VistaScope, starring Boris Karloff, now being produced in Hollywood. Corman and Jacobson plan to produuce 15 features, budgeted at a total of $12,000,000, over the next two years with 12 of these to be made in Hollywood. Among the titles slated for Filmgroup production are “The Man Who Sold the Earth,” “Robert E. Lee,” “Women in War,” “Haunted Dream” and “Juliet.” Corman produced the first film for AIP release, “The Fast and the Furious,” eight years ago. His current film for AIP release is Edgar Allan Poe’s “The Raven,” which will be released in January 1963, following “Tales of Terror,” which he produced for AIP for release in July 1962. “In order to cope with our expanded release schedule, we are installing this new IBM system, which will revolutionize branch operations as we know it today,” Nicholson said. “This will not only insure independent producers of a minimum of releasing overhead to cut down their pi'ofits but will also take care of the branch managers’ eternal cry: ‘We are not bookkeepers, we are supposed to sell film.’ This will reduce each branch’s overhead from almost 45 per cent to 20 per cent of its gross revenue. We expect that the complete installation of the system will take five years to function completely automatically.” PILOT COMPANY FOR SYSTEM Nicholson mentioned that the new system is just being installed and will not be able to show the effect in savings until late in 1963 or early 1964. AIP is the pilot company for this new system of IBM digital computers but it is expected the other releasing companies will eventually embrace it also, he said. Nicholson, who made the two AIP announcements at a luncheon at the Tower Suite’s Hemisphere Club Tuesday (20), then introduced David J. Melamed, financial vice-president of the company, who explained the new AIP digital computer system in detail. “We are installing two digital computer systems, one, the 1401, which will work at the home office, and, two, the 1440, which will extend into national branch operations. This will give us a complete record of bookings and extend into the physical operation of making certain a print is serviced to the branches, including the typing of the label for the print can. It will technically approve and disapprove contracts,” Melamed said. AIP’s five-year plan shapes up like this, according to Melamed. “1963 — the installation of the basic operation into the home office, which means the feeding of all records into the machine so that, at a moment’s notice, we can learn exactly what product has played where, how long and at what terms; 1964 — we expect to be able to hook up departments at the home office into the 1401 computer so that all print traffic information, contract infonnation, accounting information, etc., is fed into the machine from the particular department instead of releasing it into the computer typist in the sales operation office. The machine will be able to completely control print traffic. At a moment’s notice, we will know how many prints are in a branch, for how long and what their next destination is. The machine will be its own follow-up, typing shipping labels and invoices for the particular engagement,” Melamed pointed out. By 1965, Melamed said, “We hope to have all of our exchanges in the field hooked up directly to the machine in Hollywood. This will eliminate all record-keeping on a local level. The branch manager will devote all his time to selling and will need one secretary in order to feed information into the digital machine, instead of filing and entering facts into various ledgers and sales control sheets and cards. A local manager will be able to get any information he needs, instantly, by feeding the question into the machine.” Melamed concluded his remarks by stressing: “This will not necessitate laying off of any personnel. This will mean a reduction in office space but not in shipping space. We will still require a shipping room. Our machine does not have arms and legs — just a super brain.” Questioned as to whether the new system will help production and exhibition, Melamed said he believes that the old distribution systems are dedicated to the principle that producers “are being saddled with an excessive cost at current distribution rates” and that “the most successful general audience pictures derive 80 per cent or more of their revenue from the top accounts, numbering about 3,000.” According to Melamed, “Can any producer or distributor afford to forego 20 per cent of his potential?” and “what happens to the unfortunate producer whose picture does not get a 100 per cent distribution effort in 100 per cent of the market?” He mentioned that 12,000 theatres throughout the country are dependent on a steady and orderly release of product in order to help maintain and increase our audience for motion pictures. Melamed believes that producers should plan as to cost, cast, subject matter and script his package to maximize the “want to see” and that distributors should offer the producer a schedule of distribution fees (Continued on page 8) BOXOFFICE ;; November 26, 1962 5