Broadcasting Telecasting (Oct-Dec 1957)

FILM CONTINUED for future motion picture ventures or even whole tv series unto themselves." Asked whether "prior commitments" — to networks or possibly to pay-tv — by UA producers would prevent them from partaking in the Playhouse venture, Mr. Youngstein said, "We do not have an exclusive contract with anyone, and it's a good thing, too, for the producers do not feel obligated to us as they would under terms of exclusivity." UA will underwrite the series in exactly the same way it now backs motion pictures for theatrical release: 100% financing in exchange for all distribution rights and box office gross, with individual producers sharing in the profits. During the news conference it was brought out that UA-TV, in an effort to keep the commercial quality on par with the expected dramatic quality, may sell an advertiser on fully-integrated commercials — announcements produced "with the same consummate skill" as the programs they are interrupting. Since UA has no studio facilities it can call its own, the question then was asked of Mr. Youngstein: Will UA purchase a studio? The answer: "No comment." He did say, however, that "in all likelihood" the producers responsible for their scheduled segments probably would do their own commercials. He also said UA does not intend to establish a "family operation" in the commercial production field such as it now maintains in the area of entertainment films — that is, a loosely-knit federation of small, independent tv production firms specializing in video commercials. Mr. Eells stressed that these films "will not be mere pilots," but "beautifully showcased" so they can be put on the air almost immediately upon client approval of a series. He flies to California this week to begin laying the production groundwork for the series. Meanwhile, in New York, Herbert L. Golden, who leaves Bankers Trust Co. Dec. 31 to head UA-TV Inc. effective Jan. 1, was understood to have initiated discussions with several large ad LAST WEEK'S announcement that United Artists is going to underwrite tv production was made by Max E. Youngstein (1), vice president of United Artists Corp., and Bruce G. Eells, executive vice president of the subsidiary United Artists Television Inc., which until now has confined itself to distribution of feature film. vertising agencies. At Bankers Trust, Mr. Golden, a vice president, headed the bank's activities in the realm of "entertainment capital investments" [Film, Dec. 16]. The UA-TV officials promised further "progress reports" as plans jell. UA-TV's plans for entering production were first revealed in an exclusive Broadcasting interview with UA President Arthur B. Krim and Tv Sales Manager John Leo [Film, June 10]. EXHIBITORS SEEK PARAMOUNT BACKLOG • Theatre men bidding — Raibourn • But he sees 1958 tv activity Paramount Pictures Corp., which has kept its tv plans bottled longer than any other major studio, is about to pull the plug. [Film, June 10]. That was the indication given by Paramount's President Barney Balaban to the company's stockholders six months ago. At that time, Mr. Balaban gave the impression that Paramount would decide what to do about its pre1948 feature library (about 700 films) by the end of this year. In general, this still seems to be the case (though Paramount may not be holding to the end-of-the-year deadline) with one big exception: a new wrinkle in the bidding, namely motion picture exhibitors who have entered negotiations with Paramount in an attempt to lure the feature backlog out for theatrical circuits while blocking release of the pictures to television. In the meantime, Paramount last week announced the appointment of former advertising agency executive James A. Schulke "to assist in the development of Paramount's television activities." Mr. Schulke, also active in the talent field, was with the James L. Saphier Agency. In advertising, Mr. Schulke had been manager of account planning for radio and tv at Young & Rubicam. Acknowledged Paramount's Vice President Paul Raibourn: "1958 at Paramount will see a lot of things [in television]." It is conceded in the film field that Paramount has been consistently seeking the "right price" — now pegged in the vicinity of $40 million — for its backlog. According to Mr. Balaban, Paramount is negotiating with a number of people "of substance" for the sale of the pictures. He also said some theatre exhibitors have entered the bidding. Asked for amplification last week, Mr. Raibourn confirmed that "certain theatre exhibitors are very much in it." It is reported that a group of exhibitors, apparently representing big theatre interests, is considering the possibility of setting up a company. This firm would attempt to line up theatre owners throughout the U. S. which would pledge playing of the top features in the library as reissues. Once this assurance was final, the group then would dicker with Paramount for an outright purchase or lease of the features on a sevenyear term basis. Theatre men, it was said, would agree to pay Paramount 50% above normal reissue rights and possibly a quota system would be set up (minimum number of reissues to be played per year). The chief aim of the exhibitors: keep the features away from television. These theatre owners also believe they eventually could hold a trump card because after the seven-year period, they could release a limited number of the Paramount features to television but retain control. Exhibitors hope to block all studios from releasing post1948 features to tv. Mr. Balaban says Paramount has no plans to let its recent-vintage features go to tv. There has been no industry-wide movement to unload post1948 features. Paramount is moving ahead on another front, too. Officials fully expect the Lawrence tube (single gun, color tube) to go into production. Allen B. DuMont Labs, of which 26.6% of the common stock is owned by Paramount, has been working on the tube's development for more than a year and probably would be the manufacturer to produce it. The tube originally had been under development by Paramount's whollyowned subsidiary. Chromatic Television Labs. Chromatic has an agreement with DuMont. Paramount has claimed for some time that use of the Lawrence tube would reduce substantially the price of a color set. In an industry ill once more — movie receipts have fallen sharply again and still additional movie houses have closed since the first of the year — Paramount perhaps is one of the more immune, so far. The main pick-me-up for Paramount is its revenue-reaping "Ten Commandments," which cost the company $13.5 million. This picture alone is expected to bring in about $18 million in film rentals from November 1956 through the end of this year. Theatre receipts for this film are placed at about $26.5 million at present with expectations the gross can go to a record $45 million in three years ("Gone With the Wind" has the record now — $33.5 million). Some officials have even talked about grosses above this. FILM CLIPS SALES ABC Film Syndication reports sale of five half-hour tv film series — 26 Men, Code 3, Douglas Fairbanks Jr. Presents, Racket Squad and Kieran's Kaleidoscope — to ZBMTV Bermuda, which is scheduled to go on air in mid-January. Company also reports four more sales of 26 Men half-hour tv film series, increasing total markets sold to 150. Latest sales were to Drewry's beer for WMT-TV Cedar Rapids, Iowa, and to WEWS (TV) Cleveland, KWTV (TV) WACO, Tex., and ZBM-TV Bermuda. National Telefilm Assoc., N. Y., has announced sale of its Spanish-dubbed Sheriff of Cochise half-hour tv film series in Puerto Rico, Cuba, Mexico, Guatemala, El Salvador, Panama, Venezuela, Argentina, Peru and Bermuda. Other NTA sales reported: cartoons from NTA's short subject library in Puerto Rico, Venezuela, Bermuda, Mexico and Peru and 20th Century Fox package of 52 movies in Puerto Rico and Cuba. Page 54 • December 23, 1957 Broadcasting