Harrison's Reports (1945)

Entered aa second-class matter January 4, 1921, at the post office at New York, New York, under the act of March 3, 1879. Harrison's Reports Yearly Subscription Rates: 1270 SIXTH AVENUE Published Weekly by United States ?15.00 Rrw»in1R12 Harrison's Reports, Inc., U. S. Insular Possessions. 16.50 ivuom iou Publisher Canada 16.50 New York 20, N. Y. P. S. HARRISON, Editor n?^rCt*bn ' SPain A Motion Picture Reviewing Service Australia New ' Zealand' Devoted Chiefly to the Interests of the Exhibitors Established July 1, 1919 India, Europe, Asia .... 17.50 Ug Editoria, Policy: No Problem Too Big for Its Editorial Circle 7-4622 65c a copy Columns, if It is to Benefit the Exhibitor. A REVIEWING SERVICE FREE FROM THE INFLUENCE OF FILM ADVERTISING Vol. XXVII SATURDAY, JULY 28, 1945 No. 30 MGM POINTS THE WAY! Around this time of each year, when the sales forces of the different distributors convene to formulate sales policies in preparation for the new selling season, each of them invariably hands out glowing statements that stress the good will existing between the company and its customers, and, in most cases, the statements contain also some reference to the company's willingness to recognize the hardships of deserving exhibitors and to make adjustments if the facts warrant such action. Few of these statements mean anything, for most of them are cloaked in ambiguous language, such as might be used in addressing naive persons and infants, to whom promises can be made with the hope that they may be either overlooked or forgotten. Rarely do these companies outline clearly, either their policy, or the rules of conduct by which their sales forces are to carry out the policy. Unhampered by any specific rules' of conduct, the salesmen in the field, seeking to improve their records, disregard their company's an' nounced "live-and-let-live" policy, extracting from the exhibitors all that the traffic will bear. And the home office executives, pleased with the increased revenues, are hardly inclined to take disciplinary action against a subordinate who violated a policy that was announced with a tongue-incheek attitude to begin with. In other words, most announced sales policies prior to a new selling season are just so many soap bubbles blown at the exhibitors. It is, therefore, like a breath of fresh air when one company comes forth with an announcement of policy that neither minces words nor resorts to ambiguities. That company is Metro-Goldwyn-Mayer. The MGM policy, which was drawn up by William F. Rodgers, vice-president and general sales manager, and presented to his district and division managers at a meeting held in Chicago two weeks ago, is based upon a forthright, clearly defined 19-point program, which leaves no doubt as to how MGM intends to deal with its customers, and as to what it expects in return. While the policy is no cure-all for the exhibitor-distributor disputes that have kept the industry in a turmoil, it is an honest, sincere effort to recognize the exhibitors' problems and to do something about them. The policy is a great step forward toward a more amicable relationship between buyer and seller, for it is based on principles that allow for flexibility in the treatment of customers in accordance with their specific problems. It is a policy that recognizes the importance of customer good will, which, as defined by Mr. Rodgers, "is the evidence of confidence, one in the other, and based on the performance of both. It is not a one way passage, or a fair weather experience, but a reciprocal understanding applicable to good and bad conditions alike and can only be lasting where the sincerity of purpose is an accepted fact." For the enlightenment of its subscribers, Harrison's Reports is herewith reproducing the MGM 19-point program in its entirety: "1. If we make a mistake in designating a picture in a bracket higher than justified by results, it is not necessary or expected that our customer be required to ask for an adjustment in terms, but when called to our attention with the supporting facts, and they must be facts, we will reclassify the picture in the bracket where it rightfully belongs. "2. There is no policy in our company that prevents one of our top bracket pictures being reclassified even to the balance or lower bracket, if that is the proper classification based on results at that theatre. "3. We intend to retain our right of designation as there is no other means we know of to intelligently price our merchandise. "4. We intend to continue to sell on the sliding scale; that this basis is considered by us and by thousands of our customers as being a fair method of dealing. "5. We will, where justified, change the unit figure if results of record disclose a hardship, and by hardship I mean either a loss, or a minimum profit to the theatre on pictures of ours played on this basis. "6. We recognize the effect because of shifting populations, industrial inactivity and other reasons, in some small localities, on some of the subsequent runs, and I mean later runs in cities and small towns, and are prepared in such situations to adjust our terms to meet present-day business levels. In such situations we are prepared to forego so-called preferred time in exchange for what our managers consider its equivalent in the way of mid-week playing time. In such instances it can be incorporated in the contract with our customers as optional. "7. This is a matter of negotiation between our representatives and our customers and in our desire to help in specific situations which need help, it is not to be considered that we are going to forego entirely preferred time, because, to the contrary, we expect to continue to seek and we hope to get our pictures played under the most favorable circumstances. But we do want to do everything in our power to assist deserving cases. "8. We deplore the thought that exhibitors must come, as they cite it, with 'hat in hand' looking for an adjustment. That is very definitely contrary to our policy, and the sliding scale was devised to automatically take care of an adjustment. So far as flat rentals are concerned, we can have no knowledge of the results unless we are informed, and we are prepared to rectify any unintentional error made by reclassifying the picture immediately when authentic facts justifying it are presented. "9. Our branch and district managers have authority to adjudicate what appear to be unintentional errors; they can when justified adjudicate any business contracts. "10. We do not want, much less expect, any unfair terms or advantages. "11. Our policy of fair dealing will be carried out in the future as in the past. "12. We do not exact as a policy, home office approval of re-classification or adjustment in terms when presented with facts. "13. It is not necessary for our customers to come or write to New York for relief, but if it is not granted where absolutely justified they arc invited to lay their case before us for consideration and attention. "14. For some time we have been cognizant of the problems of what we term the sub-subsequent runs. Our definition of this type of operation is a theatre following the key runs in a zone located generally within the corporate limits of a metropolitan city, not necessarily the second run in a city but those which follow the key or first runs in individual zones. Hence, lor this type of run and for this type only, we will offer the pictures sold in a group on a basis whereby those who desire can lease such pictures in the top (Continued on last page)