Year book of motion pictures (1926)

Sascha Filmindustrie A. G., VII. Siebensterngasse 31. "Oefa" Films Co., G. m. b. H., VII. Mariahilferstrasse 88a. "Exzelsior" Filmvertriebs-und Verleibges. m. b. H., VII. Siebensterngasse 39. Hugo Engel (Emelkakonzern in Munich) VII, Neubaugasse 28. The two first mentioned firms (Filmindustrie and Sascha) are said to supply nearly 70 per cent of the Austrian consumption. Several other foreign film companies have representatives here, among others the firms of Gaumont and Pa the Freres. Until recently film distributors were in the habit of sending purchasing agents to London and Paris but owing to the unfavorable economic situation prevailing in Austria during 1924 and consequent losses to the film business such trips have been abandoned for the most part and distributors are now buying films that are offered them on the spot. Positives are usually prepared in Berlin, because the production price there is cheaper than in London. In addition to purchases of films, the distributors take over a number of films on a commission plan. The Vienna film trade maintains a dominating position for several countries, chiefly Yugoslavia, Bulgaria, Rumania, Hungary and Poland, for which reason Vienna film dstributing companies have to consider the tastes of their clientele in the Succession States when making their selections. The 1923-24 consumption of films is estimated at approximately 500 plays. For purposes of comparison, we would point out, that according to the estimate of the local trade Czechoslovakia and Poland are believed to consume 300 films each. Yugoslavia 200 and Hungary 500 annually, of which the greater part are purchased via Vienna. In 1924 the Austrian film consumption dropped considerably owing to the unsound position of the film industry and general unfavorable economic conditions in Austria. As a consequence, less money can be made by films and the distributors were unwilling to pay the high purchase prices of the previous year. American Films At the present time American film products dominate the market (60 to 70 per cent) but this state of affairs is not considered sound by persons in the trade. On the one hand many American films now circulating in Austria have outlived their usefulness at home and are not high class. On the other hand many of the American films fail to meet Austrian tastes and are not liked by the public because they are either too sentimental and unreal or else the rowdy scenes, boxing and fighting make them appear exaggerated. Most of the newer American stars (Pickford, Fairbanks, Tom Mix, Chaplin, Coogan) and comic films (Fatty, Harold Lloyd. Dods and others) find continued appreciation. Extensive business was done with this type of films but the profits were largely swallowed up by losses caused by films that failed to interest the local public. It is believed, however, that there will be no change in the near future in the position American films now occupy, particularly as the Succession States cover their needs through Vienna, are much in favor of American films, and it is necessary for business reasons to consider them. The film business in Austria is on an unsound basis inasmuch as a disproportionately large number of persons own motion picture theaters or act as film distributors, and carry on business with little knowledge and small funds. In 1923 business conditions in Austria were still favor able and huge stock exchange earnings made it possible to conduct business easily. A full house could be counted upon with an unpretentious audience. That was the time when Austrian dis tributors were able to pay high prices for American films. Since economic conditions have be come so unfavorable in Austria the situation has been materially changed. A sharp competition of foreign film producers set in on the Austrian market and contributed to make prices worse. At the present time, the producer or rather the film distributor has much trouble in placing films and the prices that can be offered are unfavorable. No marked improvement of the situation is expected for the near future. As a consequence the market is flooded and the film distributors run a considerable risk when purchasing films, for their profits are swallowed up by the prevailing high rates of interest (40 to 50 per cent per aimum and over) if the films lie idle even for a short time. The fact that Austrian film distributors are compelled to buy American films via London with the help of two or three middlemen is an additional disadvantage. It is therefore desired by the Austrian trade that American film manufacturers seeking to acquire the Central and Eastern European markets, establish direct agencies in Vienna, as was done before the war in order to eliminate the expen sive and unnecessary middleman. The economy thus effected may be illustrated by the case of the "Kid" film. The original price was $3,000 but by the time the film had come into the hands of the Austrian distributor $5,000 had to be paid down. Wherever conveniently possible it might be well to appoint reliable and trustworthy firms in the film industry as agents in order to save the high expenses incurred by the establishment of a branch concern especially at a time of economic depression when it is difficult to cover the outlay. On the other hand by maintaining branches it is possible to make a wise choice of subjects and to earn more money with fewer but better chosen films. In answer to special question suggested by the Bureau. No new restrictions are in view, but the Ministry of Commerce would like to bring some pressure to bear upon importers of foreign films by making import permits dependent upon the purchase of local films whereby the Austrian film industry would be stimulated. In the trade it is considered improbable that this plan could be put into practice and representatives of American films feel no apprehension about it. Censorship works no hardship. One of the small tiresome details is the difficulty placed in the way of films in which the authorities (policemen for example) are ridiculed and this applies to an even greater extent to the Succession States. A combine of film distributors or theater owners is not expected because the interests are too divergent and because in many instances they indulge in petty animosities. No new theaters are being built, although a need is felt for a really good theater for the better class audience. Attempts have been made in this direction but they have hitherto failed, owing to the apprehension of the municipal authorities that it might jeopardize the welfare of existing theaters and the difficulties encountered in raising the large amount of capital required. The erection of such a theater would be most advantageous to American films. (By William Ford Upson American Commercial Attache) Vienna, January 14, 1925 There are approximately 580 motion picture theaters in Austria, of which 186 are located in Vienna and the rest (approximately 400), distributed throughout the provinces. The Vienna theaters are by far the n lost important film consumers, since they give three to four performances daily while the majority of the provincial theaters in the larger towns are limited to one or two performances daily and in small towns to two performances per week. The Austrian film production is not important. At the present time there are /two film manufacturers in Vienna, the Sascha Film A. G. and the Pan Film A. G. producing together from 12 to 15 films annually. A third company, the Vita Film GescllBchaft A. G., has recently suspended film production. Consumption is consequently almost entirely limited to imported films of which roughly 20% 855