Independent Exhibitors Film Bulletin (1952)

,Y#*##".v anil Opinion (Continued fiom Page 6) features arc being planned at an average cost of $1,1()(),(XX). It was noted that during last year the company, in preparation for the divorcement of its theatre holdings on July 13, 1951, retired in full all of its outstanding prior preferred and convertible preferred stocks, requiring about $11,400,000 in cash to reduce the working capital substantially. Capitalization of the corporation now consists solely of 2,769,485 shares of common stock at $35.72 per share. The consolidated funded debt was reduced during the year by approximately $3,300,000, with an additional $3,000,000 expanded for additions to fixed assets. Large Screen TV In All Theatres Seen by TNT's Halpem The stress was on the "T" in SM PTE's 71st semi-annual convention in Chicago during the five days of meetings which ended April 25th after a record-breaking series of 54 addresses heard by the Society of Motion Picture and Television Engineers. It was the most comprehensive view of television in the Society's history. Biggest gun — and the one most vital to the nation's exhibitors — was sounded by Theatre Network Television's Nathan L. Halpern. TNT's president saw the current 75 theatres ecpiipped with large screen TV in 37 cities expanded eventually to embrace every theatre in the country. The comparatively rapid growth in the past year is only the beginning, Halpern said, despite an impressive increase of 600 per cent in seating capacity of TV-equipped theatres. Halpern gave some other interesting figures. Overall average attendance for all theatres on six prize fights for theatre showings by was 87 per cent of capacity. On several of these matches, the number of people turned away exceeded the seating capacity of the houses. The early losses in theatre TV, relatively small compared with experimental years in other fields, Halpern said, could be attributed to three factors: the small number of theatres sharing the cost of big-time attractions; the early tendency of some exhibitors to market their theatre TV attractions as a bonus with the feature movie without increase in admissions, and the lack of a regular year-round flow of program and promotions. He blamed the American Telephone and Telegraph Company for lack of sufficient distribution facilities, calling the "telephone situation a difficult road-block to the rapid growth of theatre television". However, he said the telephone companies have shown "an increasing understanding of theatre TV needs" and anticipated that AT&T would free more facilities for the medium. SMPTE president Peter Mole conducted the meetings. FILM BULLETIN WILLIAM GOLDMAN "/ Hate Bidding" Goldman Asks 'Moratorium On Apathy' By Movie Industry "A moratorium on apathy" was called for by W illiam Goldman, Philadelphia theatreman who has made a bit of industry history in the course of his battles with distribution and the big affiliated circuit powers. Launching an attack on competitive bidding during a testimonial dinner by Philadelphia's Motion Picture Associates to honor branch managers of all the film companies, Goldman lashed out at the practice as "vicious", saying that it offers a field day for the "manipulators". Even the distributors, he said, have decried bidding, but are doing nothing about it. He cited the statement by Adolph Zukor, Paramount board chairman, that competitive bidding has been a bigger factor in the business drop than the impact of television, "and yet Paramount keeps asking for bidding", Goldman declared. The theatrcmen also unleashed a veiled attack on the Warner Bros, chain as he related a biblical parable of 'three brothers" whose fig orchard withered and died because of their failure to nurture it. Having instituted a newspaper ad campaign against advanced admissions on film that he felt do not merit the higher prices at a time when the Warner houses were running such shows, Goldman followed this up with a blast against unsuitable roadshows. Advance admissions on such films are a dominant factor in reducing the public's good will, he said. Reviewers who pan pictures "because the films fail to live up to their long-hair standards", also came in for barbs from thq theatreman. There are few pictures produced, he said, that do not contain some elements of entertainment for a theatre's patrons. He advocated that exhibitors use their own ingenuity in setting up campaigns in order to offset the "uncertainty, monotony and inertia" that has characterized the industry in -the past few years. Heading the large Universal contingent at the alfair, Al half, worldwide sales manager, also took exhibitors t<> task for failure to maintain their theatres properly. Some bouses, In said, are "a disgrace to this industry". William (ichriiig, 20th Century-Fox executive assistant sales manager, appealed for unity ami stress,-, | the importance of an arbitration system that will relieve the industry of lawsuits. Branch managers honored included Lester Wurtele, Columbia; Jack Engel, Lippert; Lou Formato, MGM; Max Gillis. Monogram; Ulric Smith, Paramount; Norman Silverman, Republic; Charles Zagrans, kko; John Turner, United Artists and William Mansell, Warners; Sam Diamond, 20thFox and J OSepfa Leon, Universal, were unable to attend. WB Sets Sales, Promotion When Shooting— Blumenstock Warner advertising-publicity chief Mort Blumenstock, came East to explain why he went W;cst to set up his headquarters. The explanation made good sense for Warner Bros, and the salespeople Blumenstock addressed at the company's divisional meeting in Pittsburgh. Briefly, the answer was long range promotion, according to Blumenstock. "Right now," he said, "we are planning our merchandising of product from the very moment the pictures which you will be distributing go into production." Ad-publicity plans are now in process for all WB pictures currently before the cameras, he added. Today's competitive market, Blumenstock declared, makes it imperative that earlier and more intensive merchandising efforts be expended than ever before. He named "greater stress on exhibitor sales promotion and greater emphasis on consumer information about our forthcoming product" as major factors. Both Blumenstock and Ben Kalmenson, distribution vice-president, went on to Chicago for the Western divisional sales meeting for the last of the regionals. RKO Theatres Nets $1,322,000 In First Year; Grosses Down RKO Theatres Corp. in its first year as an independent circuit earned $1,322,000, despite a nine per cent drop in its gross box office receipts from 1950. Of the 1951 earnings, $1,122,500 was derived from operations of the company's 92 theatres and $199,500 from sales of capital assets. This was revealed in RKO Theatres president Sol A. Schwartz' first annual report to stockholders of the newly divorced corporation. Noting that comparative figures were on an estimated basis, since the previous vear's (Continued on Page 20) 19