Independent Exhibitors Film Bulletin (1957)

THE SINDLINGEB REPORT ( Continued from Page 7) Most theatres compare dollars this ueek with dollars the same week last year. Most distributors compare dollars this picture with another picture a year or so ago. Today, such a comparison can fool you. Very few showmen compare attendance. It might be a good idea to do so this year — to compare your attendance this year with last year. The attendance figures on the previous page are all national, including drive-in and four-wall theatre attendance. Therefore, there will be sectional differences, such as: the drive-ins in the South are off more than those in the Midwest; four-wall theatres at first run in the South are better off than those in the Midwest; etc. But, the point to be remembered is this: The attendance figures shown in the chart and the gross figures (that follow) refer to the national picture — and distribution — the source of product — is national. There's a joker holding up the net gross. As previously shown, average weekly paid adult attendance in June 195^ was ahead of last year — but July ran behind by 11.8%. Despite this situation, net theatre gross is actually up 11.7%. Thus, there is a joker holding up the net gross. Most theatres, except those charging less than 50 cents, had a different Federal tax rate this summer than last, as the current tax rate went into effect on September 1, 1956. This is the joker. Here is how admission prices have changed: THIS YEAR LAST YEAR Ju'y 1957 July 1956 $•533 NET TO THEATRES $.421 ■021 FEDERAL TAX .084 $•554 TOTAL PUBLIC PAID $.505 and, here is how average weekly income from admissions compares: THIS YEAR LAST YEAR Ju|y !957 Ju|y 1956 $26,436,000 NET TO THEATRES $23,670,000 1,041,000 FEDERAL TAX 4,723,000 $27,477,000 $28,393,000 Thus, while July's attendance this year was 11.8% behind July last year, the public spent only 3.3% less than last year— because of the increase in the cost of the average ticket at the box-office. During the average week in July last year, theatres paid Uncle Sam nearly $5-million — whereas, this year, it was onlv $ i -million. In other words — at today's admission prices — had attendance in July this year held up to the same level as last year — net theatre gross would be up 20+%. The urgency of the problem is: the attendance decline in July — which appears to be a trend — has almost eaten up the Federal tax savings. Theatre operators and distribution heads who compare this year with last will be in for a shock in September— for up to that time, gross comparisons were not comparable because of the change in tax rate. WHAT HOPE IS THERE? Should attendance continue at a level of 10 percent behind last year. All Federal tax savings would be wiped out in September—and theatres would be right back where they were before Federal Admissions Tax relief. 10,000 theatres would be insolvent— even with their current concession sales. Such a situ ation would make production insolvent to service the remaining 8,000 theatres. What hope is there? Raise admission prices? Current indications are that movie admission prices are reaching saturation — particularly at the first-run level. In addition, the public is now beginning to expect to see current features on television — either free or household for SI. 00. Thus, further increase in gross through higher admission prices is unlikely for the time being. Attempt a nation-wide, organized business building campaign? To attempt a nation-wide business building campaign at this time— without knowing the real problem in detail — would be like spitting in the ocean to raise the tide. What alternative is there then? The attendance decline will be arrested only if those within the Industry have a thorough knowledge of the problem, face it realistically, and take practical action. As stated above, to attempt a nation-wide business building campaign at this time — without knowing the real problem in detail — would be like spitting in the ocean to raise the tide. A slogan won't do it. The first step in analyzing any ailing business is to first take a look at the potential. WHAT IS THE POTENTIAL? This is the question that Sindlinger & Company analysts keep uppermost in mind in their analyses concerning motion pictures, for, if there is no potential, there can be no solution. It is the opinion of Sindlinger & Company that the best indication of the potential for motion picture theatre attendance is derived from the daily measurement of: (a) the number of people who consider going; (b) the number of people who go — and what they say about what they see; and (c) the number of people who consider but don't go — and why they don't If the facts indicated that there was a downward trend in the number that consider going each week, Sindlinger & Company would not spend its time even preparing this report. Rather, it would simply advise its clients that the future of the motion picture theatre was hopeless. But facts do not indicate a downward trend. They do indicate that the potential is actually increasing. This is why, as is well-known, that Sindinger & Company has taken an optimistic view in all public statements concerning the movie potential. The optimistic statements that Sindlinger & Company has made at various exhibitor conventions have not been made just to say something. They have been based on facts. CONSIDERED GOING OUT TO THE MOVIES ' ' Z & ADMISSIONS i ACTUALLY PURCHASED _ : " CHART NO. 2 Page 10 Film BULLETIN October 28, 1957