Independent Exhibitors Film Bulletin (1958)

WHAT SKDUHAS TGLD ALLIED above condition which has resulted in tremendous prices for material. 4. Exorbitant salary demands by stars, directors, writers and technicians, with high guarantees against a percentage of the gross receipts or the profits, whichever is greater. (Give example of eight hundred thousand dollar fee to each of two stars in a single picture, plus percentage participation.) 5. Urgency of developing new stars and the reluctant cooperation on this score. 6. Indifference of the industry to technical improvements. Lot of the Advertising Man: Gets No Credit, Ail the Blame Problems of Advertising The advertising man's lot is the worst of any of the four industry departments. 1. If a picture is successful the exhibitor, the distributor, and the producer take the credit. 2. If a picture is a failure the exhibitor absolves himself of any blame; the distributor abdicates his responsibility; and the producer, of course, refuses his share entirely, and they all point the finger of blame at the advertising department. 3. The continuous complaints from stars, directors, writers and executives that they do not get sufficient attention. 4. The impossible problem of creating a campaign that will satisfy the producer, the distributor and the exhibitor. 5. The failure of the exhibitor to share in the cost of advertising or to use advertising material available. For example only a few hundred 24 sheets are used in the entire United States on top pictures. 6. Everincreasing advertising rates. Prior to the war, advertising was largely handled by the exhibitor who personally exploited his theatre s program. Since 1944 the exhibitor has practically stopped spending money on advertising and the distributor has assumed all this expense. 7. The advertising dollar today is being stretched to cover more and more media. Originally motion picture advertising was confined to newspaper and billboards. Later on magazines were used for advertising, and still later radio and then television were put on the advertisnig budget. Now today even lobby displays are on the distributors' advertising budget. I am sure that you will agree what I have just covered represents all of the principal problems that confront the exhibitor, producers, distributor and advertiser today. We have created most of these problems ourselves and it is in an effort to correct these problems by ourselves that I am here today under the urgency of finding some workable solution to our diflSculties. And from here I intend to go to the TOA convention in Miami for the same reason. You men together with the producers have the greatest investments in this business. The properties and theatres these investments represent are in serious jeopardy. I have come to this meeting at your invitation. In 1945 I came self-invited to a similar meeting in Columbus, Ohio, immediately after the end of the second war. At that time the motion picture exhibitor was more prosperous than the small businessman of any other industry in the United States — and this also applied throughout the world. You were told then that your in\estments were on the brink of danger and your prosperity would be short-lived. I appealed to you at that time to avoid divestiture of the theatres by the producing companies because this would interrupt the steady flow of product. It was only logical that if the producers lost their theatres, there would be no necessity for them to produce as many pictures. Therefore, production would be curtailed, creating a shortage which would hurt all exhibitors, large and small alike. You were also told that this situation was complicated by another threat — the approach of television which was also the common enemy of the big and small theatre operator. You were warned that television — charging no admission — would devastate us, as it did, in providing gratis entertainment conveniently in the home, just in the same way that low-priced movie entertainment devastated expensive live shows, because of admissions — that when declining attendance and lower grosses became evident to the producers they would, in an attempt to show some profit, begin selling their backlogs to television— thereby creating greater competition for your theatres. When I said these things in 1945, I was laughed at and ridiculed. Speeches were made against me in this very forum — accusing me of using unrealistic threats to frighten you about the competition of television and — by intimidation — prevent you from seeking divestiture. I regret more than words can say that these terrible predictions came true. In fact the results were even more devastating than I had envisioned. This hurt me, deeply and personally, because many of my old friends became the victims of this overwhelming competition. Many of these men lost their theatres and their investments. It was heartbreaking to read letters from close associates of bygone years telling of their economic flight. I come before you today — for the same reason that I came before you in 1945 — to plead for the survival of our industry. This is a time of even greater anxiety because our industry faces a greater crisis — and today we are not as fortified to ride out the storm as we were in 1945. Asks Government Support With Federal Loans for Modernization Because of the importance of the motion picture to the country— and because of the great threat that production may cease and all our theatres may close — we must appeal to our government for help. The United States has a long history of support to those businesses that are vital or necessary to our nation's welfare, such as agriculture, oil, the railroads, shipping, airlines and many other essential industries which need support, when in trouble. We must appeal for governmental help in the form of federal loans to modernize our theatres. We must revive the luxury and comfort of theatre hospitality which was responsible for the motion picture's popularity in the old days — and these improvements should be financed by long-term loans carrying low interest rates. The present clearance system, which is a liability to all of us, (Continued on Page 12) Hlm BULLETIN October 27, 1958 Page 11