Independent Exhibitors Film Bulletin (1960)

A HOPEFUL NEW DECADE New Faces, Toll-TV Among Big Issues for '00 (Continued from Page 3) to build a new galaxy of boxoffice names to replace the aging stars who still predominate. The fifties was an inflationary decade. The exhibitor, who had to deal with the ultimate consumer, was caught in a squeeze between higher film rentals and a shrunken market. He had to work a lot harder for every buck. DECADES OF GROWTH But probably the most interesting aspect of the 1950's was the way the decade ended. Fifty years before, when 1910 dawned, the movies was an infant industry which everybody agreed was bound to grow. In 1920, it was already a colossus. In 1930, on the wings of sound, it had the youthful vigor to face up to depression, financial reorganization and a renewed campaign for censorship. In 1940, with war in the wings, it stood unchallenged as the most complete medium of mass communication and inspiration. In 1950, it was confronted by another communications prodigy, television, but it was a rich and knowledgeable industry, convinced of its own destiny, even in the face of the necessity for conforming to restrictive consent decrees. What is its posture in I960? What does the next decade hold for the industry which has emerged from the cauldron of the furious fifties? It is beyond question that a system for the regular development of new personalities must be maintained. Otherwise, the demands of established stars will continue to push cost spiral up and up until it will wreck the economic foundations of the industry. And, meanwhile, the fund of established talent will be drying up inexorably. It is also beyond question that while one or two companies can continue to operate successfully like United Artists, without producing their own pictures or maintaining their own studios, this is possible only when the other major companies function as studio operations. There simply is not sufficient topgrade talent available to provide an ample flow of independent product for all the companies. If any reasonable balance is to be maintained between supply and demand — and if a destructive war for the available marquee talent is to be averted — the majority of the studios will have to produce their own pictures and develop a new reservoir of personalities. It is also obvious that, despite the revenues accruing to various production companies from their manufacture of television programs, these companies derive their main profits from theatrical exhibition, and they must therefore maintain a flow of product to keep the theatrical outlets in business in order to cash in on the boxoffice value of their stars. Walt Disney uses television to help sell movies at the theatres. Warner Bros, has developed, through its television shows, new personalities who can mean money when featured on the theatre marquee. SCHISM LOOMS Thus it is possible to say, in this one area of the movie-television relationship, that a balance can and must be achieved. But this will be true only if the film companies recognize the wisdom of keeping the average motion picture theatre supplied with product. This raises a profound question for the sixties. We are seeing today the emergence of a great schism in the motion picture industry, a split between the old concept of mass marketing and the newer, limited run technique. In the sixties there are two possibilities. One is that the schism will be deepened so that, in effect, there will be two distinct motion picture divisions, one for roadshows and the other for grind houses. The other possibility is that many more subsequent run houses will be washed down the drain. This is a grim possibility; but consider these elements. Two major threats to the smaller subsequent run loom today. One is the possibility that the sale of post1948 pictures to television will ruin such theatres. Corollary to this is the possibility that a long strike over union demands in connection with the sale of post 1948-pictures, even if the pictures themselves are not shown on video, will result in a protracted work stoppage in Hollywood, thus ruinously reducing the supply of films for theatrical distribution. The second major possibility is toll television. This can be even more ruinous than the free medium. So far, television on a free basis and the motion picture theatre have been able to live together. If post-'48 films went on video thousands of theatres would suffer, but these would at least be pictures already seen in the subsequent run houses. How much worse it would be if toll television substituted the cash box in the parlor for the neighborhood theatre! And, as suggested by the various plans for feevee, it would be the subsequent run theatre which would be competing most directly with toll TV, for the bill of goods being peddled by the tollsters, particularly on the so-called sure-fire films, calls for a high-priced first run engagement, followed by a later booking on the pay video home circuit. How can this threat be met? Obviously, as long as toll television is not permitted, ultimate disaster can be averted. As far as free television is concerned, the exhibitor is on the horns of a dilemma. POST-"48 LIBRARIES Realistically, no one can expect the exhibitors of the United States to be able to offer the same kind of purchase price for blocks of post1948 films as will be offered by television stations. It has been estimated that the national yield of the major company backlogs for TV rights to post1948 films might well average out to half a million dollars per film, spread over several hundred television stations. Therefore, it hardly seems likely that exhibitors can raise a sufficient kitty to outbid video. We must assume two facts. One is that, despite Hollywood's cavalier attitude toward the subsequent run market, this market is still important in determining the ultimate profits of the picture companies. The second assumption is that the sale of films to television finds the price largely determined by the previous theatrical success of the pictures themselves. This means that theatrical showcasing is important for later sales to television. The maintenance of the film theatre as a major element of the American motion picture community depends on many things in addition to video competition. It depends, as we have noted, upon the availability of sufficient product at the right price and upon the ability of exhibitors to stand together and speak with a united voice. If exhibition has any chance to withstand the (Continued on Page >5) Page 6 Film BULLETIN January 4, 1940