Harrison's Reports (1954)

Sintered as second-class matter January 4, 1921, at the post office at New York, New York, under the act of March 3, 1S79, Harrison’S Reports Yearly Subscription Rates: United States $15.00 U. S. Insular Possessions. 16.50 Canada 16.50 Mexico, Cuba, Spain 16.50 Great Britain 17.50 Australia, New Zealand, India, Europe, Asia .... 17.60 35c a Copy 1270 SIXTH AVENUE New York 20, N. Y, Published Weekly by Harrison’s Reports, Inc.. Publisher A Motion Picture Reviewing Service Devoted Chiefly to the Interests of the Exhibitors P. S. HARRISON, Editor Established July 1, 1919 Its Editorial Policy: No Problem Too Big for Its Editorial Columns, if It is to Benefit the Exhibitor. Circle 7-4622 A REVIEWING SERVICE FREE FROM THE INFLUENCE OF FILM ADVERTISING Vol. XXXVI SATURDAY, MAY 15, 1954 No. 20 THE NEW 20TH-FOX CINEMASCOPE SALES POUCY At its Spring meeting in Minneapolis, prior to the opening of the North Central Allied Convention on Monday of this week, National Allied’s board of directors authorized Ben Marcus, president of the organization, and Abram F. Myers, general counsel and chairman of the board, to send the following telegram to Spyros P. Skouras, president of 20th Centry'Fox : “The board of directors of Allied States Asso' ciation of Motion Picture Exhibitors is gratified by your company’s decision to make its CinemaScope pictures available in the following forms: first, with four-track sound, as at present; second, with onetrack magnetic sound; third, beginning July 1 with one-track optical sound; and fourth, standard 2-D prints with one-track optical sound. The board takes this occasion to express its appreciation to you and your company for your contributions to the new processes and methods which have reawakened public interest in the movie business and make for a brighter future. Most important of all, the board records its congratulations and thanks to you and your company for proclaiming, practicing and holding to the principle that when an exhibitor shows a motion picture, he is entitled to and must have a profit in order to remain in business and make his contribution to the prosperity, good will and progress of our industry.” In a reply to this telegram, A1 Lichtman, 20thFox’s director of distribution, wired the following message to Messrs. Marcus and Myers: “Mr. Skouras referred to me your gracious telegram dated May eighth also his reply and asked me to clarify to you or present sales policy. “Originally, as an inducement to exhibitors to expend the necessary sums for equipment to enable them to show CinemaScope with stereophonic sound we did make the statement and pursued the policy of guaranteeing a profit to any exhibitor that installed the system and played our CinemaScope pictures. “However, since this policy has been altered in the manner now well known to you, we also had to revise our sales policy to some extent. That is originally the first picture ‘The Robe’ was sold seventythirty with a guarantee of 10% of the gross as profit to each exhibitor. This was self-adjusting and worked out very satisfactorily. Feeling our way with a new process, we made all subsequent pictures in most instances fifty-fifty with condition we would review results and if 5 0% of the gross was not justified same would be adjusted down to the point where exhibitor would have a reasonable profit. Many adjustments have been made on this basis. “Last Friday I had a meeting with my branch and division managers and instructed them we do not see our way clear to have a uniform system. All film rental terms will have to be based on exhibitor’s ability to pay and I would prefer to do away with reviewing every engagement and renegotiating every contract after the engagement as this entails tremendous amount of accounting and physical work. “Therefore, I have instructed my men as follows: “1. To keep our promise to all those who have been sold on old basis of a profit and to readjust such contracts where present terms did not result that way. “2. All new deals to be made on basis of what our experience with each account justifies with protection afforded both exhibitor and ourselves. The basic principle of our policy is that we must have successful exhibition if we are to have successful production and distribution business. Of course, you gentlemen know there are theatres, even if we paid them to run our pictures, still would not show a profit. Exhibitors or ourselves could not have control over this any more than exhibition could guarantee us a profit on every picture regardless of what we spent. “I explained to Mr. Marcus my basic thinking in this respect and he seemed highly satisfied. “I also wish to refer you to the many years of fine relationship we have enjoyed with thousands of exhibitors throughout the nation and I do not see that it will be any different in future. “In this business we have to give and take and help one another. Sometimes we are in trouble and we ask for favors and often many exhibitors are in trouble and we must try to help them.” It is to be noted that the Allied telegram to Mr. Skouras contends that 20th-Fox has decided also to make its CinemaScope pictures available in “standard 2-D prints with one-track optical sound.” The film company denies this and a number of the Allied leaders now accuse 20th-Fox of “back-tracking.” Harrison’s Reports cannot go along with the Allied contention. It is true that, at the exhibitor forum sponsored by 2 0thFox, Mr. Lichtman, in addition to offering the exhibitors the choice of playing Cine■maScope pictures with or without stereophonic sound, offered them also the choice of playing such pictures in 2-D, but he pointed out that, in his opinion, “it would be retrogression and the biggest mistake in the world not to show CinemaScope pictures in the anamorphic system.” The exhibitors at the forum apparently heeded his advice, for there was no further discussion of this particular offer. Moreover, the resolution adopted unanimously by the exhibitors and on which 20th-Fox set its new policy was worded as follows: (Continued on bac\ page)