Independent Exhibitors Film Bulletin (1963)

Balaban Sees Profit In Lower Film Costs Faced with the necessity of explaining a decline of $9 million in gross income from 1961 to 1962, and a loss last year of $3,410,000 compared to the profit of $5,668,000 in '61, president Barney Balaban told Paramount stockholders last Tuesday (4th) that he is counting on a reduction in production costs to help put the company back in the black in '63. The annual meeting was sparked by the appearance of Joseph E. Levine, who plugged the three productions he has committed to Paramount release within the next year — "Zulu", "The Carpetbaggers" and "Nevada Smith". Paramount showed a profit of $275,000 in the first quarter of the current year, a sharp drop from the prior year, and Balaban warned the shareholders: "Indications are the second quarter will not be favorable either." But, he declared, hopefully: "We look forward to improvement during the third quarter." Cost-cutting in production, he revealed, has enabled the company to bring in several pictures on budgets that afford it "an excellent opportunity to emerge with a profit." When Balaban mentioned a possible studio merger to keep down costs, a stockholder inquired why Paramount was not included in the proposed consolidation of studio facilities by Fox, Metro and Columbia. He replied that Paramount was invited into the deal, but had made no decision. Balaban indicated that Paramount is embarking on a period of de-diversification. The shareholders were informed that about two-thirds of the company's Ampex holdings and "virtually all" of its shares in Fairchild Camera have been disposed of. Balaban also admitted that Paramount is having trouble getting its Chromatron color-TV tube on the market. He has been touting this item to stockholders for a number of years as a bright income prospect. BALABAN Page 4 Film BULLETIN June 10. 1963 CAST & CREDITS Report on the Industry's PEOPLE and EVENTS I I More Acreage Sought For Studio Project Plans continue afoot for setting up the joint MGM-Fox-Columbia production center on the site of 20th-Fox's Malibu ranch. Last week it was reported that the latter company was on the verge of closing a deal to add between 70 and 80 acres to its present 2500 acres at Malibu. This move, if consumated, would appear to confirm the belief that the three companies have entered into a firm commitment to go ahead with the project. Insiders calculate that the joint studio will be in operation by late 1964 or early '65. Meanwhile, negotiations are being conducted quietly by all three companies for the disposal of their present valuable studio holdings. 'Horn' Blasted One of the pictures on which Paramount is counting heavily to boost its sagging income, president Barney Balaban told the stockholders, is "Come Blow Your Horn". Also regarded hopefully by many theatremen as a boxoffice attraction for the summer season, the film was accorded a resounding blast by two of New York's foremost newspaper critics. Bosley Crowther, of the Times: "The dismal fact is that the producers and Frank Sinatra have really butchered the play in their garish screen version . . . The worst thing about this picture is the dullness with which it is played — the lack of pace in (Bud) Yorkin's direction complements the clumsy performances." Judith Crist, Herald Tribune: "Loaded with gaseous gags, banal situations and scenic digressions, 'Come Blow Your Horn' is the latest victim of (Hollywood) over-expansion. On stage this tired little family tract on youth's prematurity fling was one of those trivial corn-filled, slickly performed comedies that kept you laughing in spite of itself * * * >n the super-screen it's as tiring as it is tired." Reade Tells 'Holders: WR-S Is on the Rise Growth was the theme of the statement made by Walter Reade, Jr., board chairman of Walter Reade-Sterling, Inc. at a special stockholders meeting last Thursday (6th). Gross revenue in 1963, he estimated, will be better than Sll million, representing 25 cents per share, against the gross of $9,406,181 (14 cents) for 1962. The burgeoning WR-S theatre circuit has been increased by 15 houses so far this year, including The Community, in Cherry Hill, N. J., which opened Thursday evening, The 34th Street East, in New York, is due to open mid-July. Reade described business in the first quarter as "extremely good", but said that a lack of quality films would result in a "soft" second quarter. The third quarter, the board chairman predicted, would be "the best" the company has experienced thus far. The Continental Distributing division is doing fine, he told the stockholders. Three of its current releases — "David and Lisa," "The Balcony" and "The Wrong of the Law" — are important grossers. He said Continental presently has sufficient product to give it a steady release schedule through mid1964. Reade's optimistic prognosis for future earnings was predicated on "internal leverage factors." WR-S is integrating its Sterling Television arm into the parent operation, developing 16mm distribution, and preparing to enter the music publishing field. It also plans to enlarge its films-to-TV distribution. Re-elected board members: Reade, Saul J. Turrell, Edwin Gage, Allan D. Emil, William H. McElnea, Jr. and Joseph D'Addario. 20th To Give 'Day' Break Big Campaign "Cleopatra" is the big news these days, no doubt. But 20th Century-Fox is determined that the Queen of the Nile will not overshadow the general release launching on June 26 of Darrvl (Continued on Page 19)