Film year book (1948)

The particular independent producers whose features have been distributed by RKO have varied from time to time. In the nine seasons ending 1943-44. 19.8 per cent of the features distributed by RKO were independently produced, and 28.4 per cent of RKO's gross receipts from domestic licenses of features was derived from such independently produced features. 102. It would be financially impossible for RKO to operate its theatres on features distributed by RKO alone. 103. Twentieth Century-Fox produced less than 9 per cent of the total number of features nationally distributed in the United States during each year between 1936-37 and 1944-45. 104. Universal has customarily produced at its studios at Universal City. California, during each theatrical year (commencing on or about September 1st) between 45 and 50 feature-length motion picture photoplays, seven so-called Westerns, four serials. 15 two-reel subjects, 30 singlereel subjects and 104 newsreels. 105. Said motion pictures were distributed by Universal and licensed for exhibition by motion picture theaters throughout the United States by means of a system of 31 exchanges located in various States in the United States, from the East Coast to the West Coast and from Canada to the Southern boundary. Universal also maintained a home office in the City of New York. Pix Credits Offered 106. In marketing its motion pictures. Universale usual and customary practice was to offer a license to exhibitors, by title and description as aforesaid, its entire line of pictures, consisting of feature-length motion picture photoplays. Westerns, short-subjects (consisting of serials and tworeel and one-reel pictures) and newsreels. In this way approximately 60 feature-length motion picture photoplays, a group of Westerns, short-subjects, two so-called "Special" photoplays, three features produced by independent producers, and newsreels. were offered to exhibitors by Universal each year. 106A. During recent years, in excess of 600 feature-length motion picture photoplays were released each year in the United States, exclusive of foreign-made films. Universal releases of feature-length photoplays, including Westerns and so-called Marquee pictures, during said period, equalled approximately 8 per cent of the total number of feature-length photoplays released in the United States each year. 107. During the period in question. United Artists Corporation distributed between 20 to 26 pictures a year when the corporation had a good year and has handled as low as 4 in distribution in a releasing season. 108. At no time during the period in question did United Artists distribute more than 5 per cent of the feature photoplays American made and distributed in the United States of America and generally distributed less than 5 per cent of : nch releases. 109. That in each distribution agreement with each producer using the facilities of United Artists for distribution among other things there appears substantially the following language: UA Sales Contract "United agrees to devote its best efforts to the proper marketing and disposition of the motion pictures delivered hereunder in all the territories licensed hereunder wherein it customarily markets motion pictures, and to make such marketing as complete and efficient as practicable, so that the gross returns from the marketing of the product hereunder shall be as large as possible and at the same time consistent with the sound business policy of United. "United will use its best efforts to procure prices, license fees and rentals in a fair and open market reasonably satisfactory to the Producer. "Exhibition Contracts: The exhibition contracts for each of such motion pictures delivered hereunder shall be made separate and apart from the exhibition contract of any other motion picture marketed by United, with the exception that in territories other than the United States where it is customary to include more than one motion picture on a contract, the Producer authorizes United to market its product in accordance with that custom. In no event, however, shall anj motion picture of the Producer be used to enforce the licensing, leasing or other disposition of any other motion picture marketed by United, and in such territory where it is the custom to include on one contract more than one motion picture United shall set out the respective license fees for each motion picture after the name oi such motion picture. "United agrees upon the written direction of Producer that United shall market wherever permissible the motion pictures designated by the Producer or its agent as a unit, and in such case such unit shall be licensed separate and apart from any other motion picture marketed by United, with the exception that in those countries whei;it is the custom to market all of the motion pictures on one contract. United shall adhere to the prevailing custom. "The Producer shall have the right to designate a representative for the territories hereinafter specified. The Producer shall bear all the expenses of such repres'.i.iative. Such representative must have an office in the central location of such trritory, and if so United shall submit to such representative for his approval or rejection all proposed written contracts with exhibitors for that territory. The territories and their central location are as follows: Central Territory Location United States and Canada New York British Isles London Australia Sydney "Producer agrees that such submission shall not be necessary if made impractical by conditions beyond the control of United, such as conditions arising out of war. "If the producer has designated such a representative for any such territory. United shall submit for his approval or rejection each proposed written contract for the distributing, exhibiting or marketing of such Producer's motion pictures or any of them in the territory in which such representative is acting. No such contract shall be accepted by United if within three (3) succeeding business days following the date on which said proposed written contract has been received by the Producer or its representative the Producer or its representative shall return such proposed contract to United with its rejection noted thereon or appended thereto. UA Option Open "Should the Producer or its representative reject any such proposed contract the Producer or its representative shall have fourteen (14) days from the date of rejection in which to obtain a more favorable contract. Should the Producer or its representative fail so to do the original contract shall ipso facto be deemed approved unless the Producer or its representative shall have designated its original rejection as final. No proposed contract on which the rejection has been designated as final shall be entered into by United. "Should the Producer or its representative at any time agree in advance with United upon the rental terms or license fees for the distribution, exhibition or marketing of any motion picture in any specified theater or situation, United shall not be obligated to submit the contract containing the terms so agreed upon to the Producer or its representative for approval." 110. Various contract provisions by which discriminations against small independent exhibitors and in favor of the large affiliated and unaffiliated circuits were accomplished are: suspending the terms of a given con 981