Harrison's Reports (1954)

8 January 9, 1954 HARRISON’S REPORTS “It is obvious that the Crest decision has given to distributors, acting independently, the privilege of restricting first run showings to downtown theatres. This addition to the already tremendous discretionary powers in distribution can be a dangerous instrument, and it behooves the distributors to watch carefully that this additional discretion is not abused. The Crest decision is no green light to distribution to indulge in discriminatory tactics. Nor should this decision be taken by distribution as an indirect suggestion that competitive bidding between theatres for first run is either permissible or advisable. There is no more oc' casion now than there was before the Crest case for distnbution to use compulsory competitive bidding except in those rare instances where particular distri' butors sincerely and honestly feel that only through the use of competitive bidding can an actual threat of litigation be dispelled. “The Crest decision strengthens the distributors’ position at a time when theatres in general are pathetic victims of a sellers’ market. It also widens the ‘no man’s land’ area that has been developing rapidly between the first run and subsequent run operations. “Distribution policies over the past few years have resulted in the subsequent run operator slowly be' coming ‘the forgotten man’ of the industry. The cumu' lative effect of unenlightened and uneconomic dis' tnbutor practices is taking its toll, and chaos may well result unless distribution alerts itself to the plight of the subsequent run theatre owner and unless distribu' tion makes its primary objective a change in its poli' cies to insure the subsequent run theatre owner a fair and reasonable opportunity to exist. Distribution’s determination and almost inflexible apphcation of na' tional sales poHcies without regard to the potential of the individual theatre, the decrease in the number of pictures produced and released, and the ever in' creasing rentals for the fewer and fewer pictures released must injure first run operation, and may well destroy subsequent run operation. Distribution should become conscious of these self 'evident facts, and now. before any relief that may be granted will come too httle and too late.” Both Mr. Myers and Mr. Levy have given the dis' tributors sound and constructive adviceT Jit is to hoped that they ndl) wisdom of heedipg ilu. A THOUGHr-PROVOKING RES^tJTlON The board of directors of the Allied Theatre Own' ers of Indiana, at its regular monthly meeting held last Tuesday, passed the following resolution: “WHEREAS, all producing companies have adopted a ruinous policy of ‘fewer pictures playing in fewer theatres,’ and “WHEREAS, approximately only two hundred and forty pictures will be released during the coming year; and “WHEREAS, of that two hundred and forty, some fifty pictures will be released in CinemaScope, leaving only one hundred and ninety in the regular medium; and “WHEREAS, towns with more than one theatre and subsequent runs in cities need approximately three hundred and twelve pictures a year, and are now fac' ing the greatest crisis in the history of the motion picture industry; “NOW THEREFORE BE IT RESOLVED: By the Board of Directors of Alhed Theatre Owners, meeting on this 5th day of January, 1954, that the only solution to the product shortage is for exhibition to enter production. This must be accomphshed by taking over the studio facilities and control of an existing producing company by exhibition acquiring stock and voting proxies of the company. To this end the Indiana Board of Directors urges that Allied States Association, at its Board of Directors’ meeting, to be held in Cincinnati on February 4th and 5th, take the following steps: “1. Make an immediate survey of the number of shares of film producing companies’ stock now held by exhibitors and pledge to turn over voting rights on stock held. “2. To secure exhibitor guarantees of play dates at commensurate prices from exhibitors for pictures released by the company in which exhibitors will gain control. “3. To secure from the Security Exchange Com' mission a list of the present stockholders of each prO' ducing company. “4. Pledge of exhibitors to contact stockholders in their communities whose names are furnished by the Committee from its S.E.C. list for the purpose of obtaining their proxies. “5. To urge the Theatre Owners of America to also take the steps listed heretofore. And upon com' pletion of the Allied and T.O.A. survey, form a joint committee to determine what company should be selected for exhibitor control. “6. Immediately contact heads of all Hollywood Guilds whose members are suffering from the greatest unemployment in the history of the industry, request' ing their disposition toward entering into profit'shar' ing production of pictures.” This resolution is an extension of the proposal made by Trueman T. Rembusch, the Indiana Allied leader, in his keynote speech to the National Allied Conven' tion, held in Boston last October. At that time the Convention delegates greeted the proposal with en' thusiasm and voted unariim,ou4y Ubty oE the idea. A committee was appointed to study the proposal a^d to report its reeom©eD^^orwJ^^ Allied board. ' k Ra? already Teen said in these cc^umns, the idea is indeed novel and provocative. And ill vi^ bT the fact that the product shortage problem is becom' ing worse instead of better, exhibitor interest in the proposal may become intensified. MAN OF THE YEAR Spyros P. Skouras, 20th Century'Fox’s dynamic president, has received the annual “Exhibitorating Award” of the Independent Film Journal as the man who did “the most to further the best interests of the motion picture industry during 1953.” Harrison’s Reports is heartily in accord with the Independent Film Journal’s selection of Mr. Skouras as “Man of the Year.” It is an honor he richly deserves because of his courage, progressiveness and farsighted' ness in bringing about the development of Cinema' Scope.