Boxoffice (Oct-Dec 1962)

EXHIBITION FUTURE IS BRIGHT, MILTON H. LONDON EMPHASIZES COMPO Probing Extent U. S. Tax On Tickets Affects Theatres Allied Executive Director Sees New Opportunities In Population Shifts DETROIT — “The very same population shifts which have brought disaster to many big city and small towm theatres also open up new opportunities in the areas to which people have moved,” a factually based and hard-hitting, but essentially optimistic, report by Milton H. London, executive director of Allied States Ass’n, was to tell exhibitors Monday (3) at the opening session of the Allied convention in Cleveland. IT’S ENTERTAINMENT BUSINESS Reviewing current problems and future prospects, London emphasized: “We are not in the movie business, we are in the entertainment business,” and titled his talk with the key theme, “There Will Always Be a Profitable Market for Entertainment.” The full text of London’s talk follows: Theatre business represents one of the world’s great industries. Boxoffice grosses this year in the United States will approximate $1,500,000,000. One and a half billion dollars. Almost all of the permanent investment in this industry is by exhibition. There are two-and-a-half billion dollars invested in motion picture theatres as against a negligible investment in motion picture production and distribution. The 13,000 conventional theatres and 5,000 drive-in theatres in the nation provide an annual market of over $500,000,000 for confections and soft drinks. Yet theatre business is far from profitable and most exhibitors have been frozen into despair and inactivity by the frustrations of serious problems arising from forces over which we have no control : 1. Motion picture production in the United States is at an all-time low. There is an acute shortage of motion pictures for theatre exhibition. 2. The seller’s market which results is brutal in its effect upon the exhibitor. Negotiation for motion picture product has practically disappeared. The film companies often arbitrarily demand terms and conditions which preclude a profit and guarantee a loss to the theatre owner. ATTACKS ROADSHOW POLICY 3. Any big picture which has the potential to bring people out to the theatre is declared by the film companies to be a “roadshow.” It is then restricted to a limited number of theatres in the larger metropolitan areas and not made available to the mass market until customer demand has diminished. 4. The few other pictures which have a merchandising potential are scheduled only for holiday release. At each holiday period, major attractions compete against one another for the movie customer’s dollar. Between the holidays, there are huge voids when no picture of any consequence is made available. This “feast or famine” NEW YORK — A survey to determine how many theatres are affected by the admission tax on tickets selling for more than $1 will be undertaken immediately by the tax committee of the Council of Motion Picture Organizations, "rhis was determined November 28 by the committee at a meeting in COMPO headquarters here. The committee decided that this information was needed in order to properly place exhibition’s position before members of Congress when, and if, a campaign to eliminate the tax got under way. At present, there are no statistics as to the number of theatres involved nor the amounts system of release is a calamity for the industry. The film companies have long been urged to adopt some system of “orderly release.” All effort has been futile. The problem grows more acute. 5. There are more, better and newer motion picture features on free television this season than at any time since the advent of television. Major motion picture productions now take up most of the prime TV time on Saturday and Sunday evenings. The film companies continue to sell newer and newer releases to television in spite of the fact that this is serious and unfair competition to their own current theatre releases. 6. Many theatres have lost their patrons in the exodus of population from small towns to the metropolitan areas and from the core of the big cities to the suburbs. Yet, it would be folly for exhibitors to dwell exclusively on these problems, serious as they are, and fail to concentrate time, effort and enthusiasm on the opportunities for profit which do exist and the brighter future which does lie ahead. We are naturally more aware of our own problems, but all businesses and all industries have equally serious problems and continue to operate and prosper in spite of them. So must we. The very same population shifts which have brought disaster to many big city and small town theatres also open up new opportunities in the areas to which people have moved. A boom in the construction of indoor theatres is well under way in the suburbs of the metropolitan areas and in large shopping centers. There are many new areas certain to increase in population during the coming years which will welcome and support an attractive, comfortable, modern theatre. Someone will profit by fulfilling the need. Will it be you? Theatre business holds no future for the exhibitor who insists upon living in the past. Mankind has entered the space age. The paid out from the admission tax. Meanwhile, however, COMPO will go ahead immediately on the organization of exhibitor committees in the 435 Congressional districts in the 50 states. Charles E. McCarthy, COMPO executive vice-president, said literature would be prepared in regard to the campaign so that COMPO will be ready to move when Congress reconvenes in January. Inasmuch as the Kennedy administration has been eyeing tax reductions, the possibilities are that the admission tax would be included and COMPO will act accordingly. entire world is engulfed in a fantastic and frightening era of change. We have broken all barriers of speed, time and distance. We have unlimited power at our command. The norms, standards and routines by which we previously patterned our lives are forever gone. No man, no business, no industry will remain unaffected. Humanity lives in the fearful shadow of self-destruction; but man is reaching for the stars. The very same changes which are destroying our security are also presenting us with unlimited opportunity. Success can only be achieved by looking ahead and planning for the future. A worldly and sophisticated public accepts as commonplace this year’s miracles of planetary probes, space exploration, mazers and simultaneous, worldwide entertainment by Telstar. Theatres just cannot expect to compete for attention with the same old equipment and the same old showmanship that we have been using for the past decade or longer. Technological innovation and scientific merchandising are as necessary to theatre business as they are to all other businesses. Theatremen must be adaptable, dynamic and enthusiastic. We must re-establish communication with our potential audience. We must update and upgrade the public image of the theatre. This is why Allied is undertaking an extensive and comprehensive program of market research. It is necessary that we learn the psychology of patron motivation so that theatres can gain a much larger share of the entertainment market. Let us take off our blinders. We are not in the movie business. We never were. We are in the ENTERTAINMENT business. There will always be a profitable market for entertainment. The need for entertainment is as basic as the need for food. The demand for entertainment is not diminishing— it is expanding with the population explosion, the rising standai-d of living and the increase in leisure time. 6 BOXOFFICE :: December 3, 1962