Year book of motion pictures (1926)

The Outlook By the editor of THE FILM DAILY CHANGES of marked and vital importance will characterize 1926 within the Motion Picture Industry. Internationalization of motion pictures through the medium of American production will find a very definite progress throughout the world which will have resultant objections and perhaps in some places tariff and other restrictions in the form of "Kontignen's" etc. While conditions within the United States will be materially affected they will be of no less importance than those changes which will mark a new era all around the world — wherever American pictures have been and are being shown. In America the theater acquisition movement on the part of large producing and distributing corporations will continue with more activity than during the last six months of 1925 when this movement reached almost a climax with one large corporation following closely on the heels of the other to acquire theaters not only in key cities but even in smaller communities. That the movement of theater buying by distributing and producing corporations has but barely begun, is admitted by practically every important thinker in the business. It is confidently anticipated that by the end of 1927 if not before, Publix Theaters will have at least 800 houses under its management. (Publix is the corporate title of the organization formed by Balaban & Katz and Famous Players when they merged their theater activities in the Fall of 1925.) With this development in theater operations in all probability there will come a change in the production and distribution situation. Those who have contended that chain buying was the greatest aid to reducing distribution costs are stronger in their arguments than ever. Obviously, if one buyer can book product over an entire territory there is little need for an expensive and extensive selling organization. And practically each of the thirty or more key cities of America have from fifteen to twentyfive exchanges, while theater chain buyers have maintained steadfastly that practically 709c of these distributing agencies were unnecessary. The fact that distribution costs are far in excess of what constitutes profitable business operations lends aid to their argument. The same economic problem holds forth with regard to production. Statistics show that during 1925, 578 pictures were released. A figure far in excess of the quantity necessary for the profitable operation of theaters. Excess production always leads to price cutting with resultant losses to producers. The fact that unquestionably many of these productions had little or no value from a quality standpoint only aggravates an otherwise serious situation. It is to be expected, however, that with the increased theater activities of the larger corporations that there will follow radical changes with regard to distribution and production. And these changes will affect not only the larger but doubtless the smaller producer as well. Indeed, one of the most difficult problems facing the industry is with regard to what is known as the "independent" producer and distributor. Not that there will be lack of room for the "independents." for there will always be room for good pictures, and if such productions come from this "independent" market, playing dates will also come. It is to be hoped that a finer and better reciprocal attitude develops on the part of the larger American distributing corporations toward foreign-made productions during the coming year.