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Wednesday, April 8, 1936
Page Three
BUY FROM THE PRODUCER
WHO ISNT YOUR COMPETITOR !
There are numerous indications that, with the return of a certain degree of prosperity the big five producer-exhibitors are avidly eyeing the theatre field with the view of spreading their tentacles further into exhibition.
Today, those five companies are competing with thousands of independent theatre owners and we witness the somewhat insane situation wherein those exhibitors do their share to fill the coffers of the producer-exhibitors by buying their films, only to have that very money used to purchase theatres in competition with them.
Paramount, still quivering like a fish out of receivership and jittery about the poor quality of its product, is deep in negotiations to regain its whole vast chain of houses, which it so shrewdly kept out of the bankruptcy proceedings. Metro and Warner Brothers and Fox, too, are "feeling their oats" and casting about for spots in which to spend some of their fat bankrolls and grab a firmer hold on the industry. Only RKO, beset by a multitude of howls from exhibitors about their awful product, has no time to increase its theatre holdings. But one good season will correct that!
These five companies must be regarded as competitors by every independent exhibitor. While, today, one of their affiliated theatres may not be in your neighborhood, their policy stands as a constant threat against the existence of independents everywhere, a threat which they do
not hesitate to use when an exhibitor declines to accept whatever terms they fix for their films.
There are a number of producing companies which confine their part in the industry to the job of producing films and leave exhibition to their customers. It is vitally important that the independent exhibitors of this country keep in mind, during the approaching selling season, that those producers who only produce should be supported before a five cent piece is added to the wealth of those who do not hesitate to acquire or build theatres and use their power to destroy the independent.
United Artists, Columbia, Universal, Republic, G-B, the new Pathe company and every independent deserves the fullest cooperation of exhibitors in every case where there is a free choice between one of the big five and these producers. Undoubtedly, there are situations in which, for competitive reasons, exhibitors are obliged to do business with the producer-exhibitors. Also there are situations in which, for whatever reasons, it is more advantageous to buy their products. But, in the cases in which an exhibitor may choose between one of the producer-competitors and one of the non-theatre operating producers, it will be a wise choice, for the future security of that exhibitor, to buy the product of the latter. That is, unless he doesn't care how long he is to be permitted to remain in business.
MO WAX.