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Wednesday, July 1, 1936
Page Three
THEATRE-OWNING PRODUCERS AND FILM COMPANIES !
The letter we received early this week from an exhibitor who prefers to be known merely by the signature "R" puts these two questions to us:
"Isn't the selection of two theatremen, E. V. Richards and Barney Balaban, to the new Paramount Board an ominous warning that this company is again preparing to go on a theatre-buying spree? What can we independent theatre owners do, within the limits I am aware of, to protect our futures in the film industry?"
There can be little doubt that the answer to the first it "yes." For some time now, Paramount has been giving the trade many indications that it plans to plunge into the theatre field even more heavily than in the past. The Zukor regime is back on the throne and it should be recalled that Adolph the Ambitious was the original instigator of producer-affiliated theatre chains. Make no mistake about it, Paramount is on the march again — not in the production of better product, mind you — in the acquisition of exhibitors' theatres!
To the second question, Mr. "R," we shall answer with the repetition of an editorial, which appeared in FILM BULLETIN several months ago. Unless, then, you are prepared to join in an aggressive movement, like that planned by Allied, to drive the producers from theatre business by legal and legislative means, the following is our reply:
"BUY FROM THE PRODUCER
WHO ISN'T YOUR COMPETITOR!
"There are numerous indications that, with the return of a certain degree of prosperity the big five prod ucer-exihitors 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 someivhat 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, tvhich 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 fixed 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 potver to destroy the independent.
"United Artists, Columbia, Universal, Republic, G-B, the new Pathe company and every independent descries 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 tvhich an exhibitor may choose between one of the producer-competitors and one of the non-theatre operating producers, it u ill be a u he choice, for the future security of that exhibitor, to buy tin product of the latter. That is, unless he doesn't care bow long he is to be permitted to remain in business.
MO WAX."