Harrison's Reports (1945)

140 HARRISON'S REPORTS September 1, 1945 16MM "JACK-RABBIT" SHOWS Arthur M. Locw, president of Loew's International Corporation, announced recently that his company would organize a special division for the distribution in foreign markets of MGM features and short subjects in 16mm film. Mr. Loew said that the 16mm prints would supple ment rather than supplant the foreign markets now served with 35mm prints, the purpose of the new division being to open up a new field by bringing film entertainment to people who live in isolated communities or in towns that are too small to support a regular theatre. He made it clear, however, that the new division would confine its activities to foreign markets, and that the distribution of 16mm prints was not contemplated by MGM in cither the United States or Canada. Mr. Locw stated also that the distribution of 16mm prints in foreign markets would in no way compete with the territories now being served with 35mm prints. "For several years," said Mr. Loew, "I have observed and studied the increasing use of 16mm film. The war has given tremendous impetus to the improvement of 16mm projectors, sound, and film, and today narrow-guage film approaches 35mm quality when projected before audiences of less than 1,000. "I do not believe that 35mm will be discarded in favor of 16mm; far from it. What will happen, in my opinion, is that 16mm will open up a new audience for pictures that 35mm has cither never reached or barely touched. . . . "Mobile projector units will be used, similar to the mobile units that have followed our soldiers wherever they have gone. By this means no location on the face of the earth is too remote to be reached by 16mm film." According to present plans, Mr. Loew expects to have every current MGM picture reduced to 16mm, with prints available for release in foreign markets by January 1. MGM's entrance into the 16mm distribution field makes it the first of the large motion picture companies to take this step. That some of the other companies will soon follow MGM into this field is almost a foregone conclusion, for there is apparently a tremendous audience potential in territories throughout the world that can now be reached by mobile 16mm projection units. Although MGM has given assurances that, insofar as entertainment films are concerned, it will confine its 16mm activities to foreign fields, the question arises as to whether or not the other companies, in the event that they should enter 16mm distribution, will give similar assurances. Just how lucrative will be the new markets accessible by mobile projection units remains to be seen, but, assuming that these markets turn out highly profitable, there is a possibility that some of the companies may decide to establish mobile units to service rural areas within the United States and Canada. Then the 16mm business would indeed become a threat to theatre exhibition. It might not be entirely objectionable if the mobile units confined their showings to purely rural districts that do not have ready access to established theatres. And in that case, care would have to be exercised to keep the mobile units out of small towns, even though they have no theatres,, but from which many exhibitors draw patronage. No one can say at this time just how intensified the use of 16mm entertainment films will become as re gards their exhibition by mobile units. No one can deny, however, that it poses a serious competitive threat to the established exhibitor. The exhibitors can expect little if any protection from mobile units exhibiting entertainment films that arc produced by independent people exclusively for the 16mm market. But when it comes to entertainment films produced for established theatres in 35mm, and then reduced to 16mm for what is known in the trade as "jack-rabbit" shows, then the exhibitors can and should take steps to protect their interests. In the first place, they should demand of the different distributors an expression of their plans and intentions regarding 16mm films. Then, again, they should insist upon the inclusion in their film contracts of a clause to the effect that the pictures they license for exhibition will not be furnished to others in 16mm prints for exhibition within the area serviced by their theatres. TWO IMPORTANT EXHIBITOR MEETINGS On August 21, 22 and 23, the Conference of Independent Exhibitors and the Board of Directors of Allied States Association met in session, separately, in Pittsburgh, to discuss current as well as post-war problems affecting independent exhibition. Because the C LE. and National Allied reflect the opinions of truly independent exhibitors, Harrison's Reports believes that a summary of the business transacted and the decisions made at both meetings will be of interest to its subscribers. The following is a report on the meeting of the CLE.: Present were representatives of the Independent Exhibitors of New England; Allied Theatres of Conn.; Allied Theatre Owners of New Jersey; Motion Picture Theatre Owners of Maryland; Allied Ind. Theatre Owners of Eastern Pa.; Allied Motion Picture Owners of Western Pa.; ITO of Ohio; Allied Theatres of Michigan ; ITO Protective Association of Wisconsin and Upper Michigan; Allied Theatre Owners of Texas; Associated Theatre Owners of Indiana; Allied Theatre Owners of Illinois; Unaffiliated Independent Exhibitors of New York City; AlliedIndependent Theatre Owners of Iowa-Nebraska; North Central Allied Independent Theatres; and the Pacific Coast Conference, which is comprised of the ITO of Northern California and Nebraska, ITO of Southern California and Arizona, ITO of Washington, Northern Idaho, and Alaska, and the ITO of Oregon. Abram F. Myers, Allied's General Counsel, reported on the status of the Government's anti-trust suit against the major companies, the investigations carried on by the Department of Justice in the field, and the procedure to be followed at the trial. A resolution addressed to the Attorney General was adopted by the conference expressing confidence in and appreciation of the manner in which the suit has been and is being handled, and pledging the Conference's continued cooperation and support. The delegates expressed the unanimous view that the Conference should be continued at least until a final decree had been entered. Mr. Myers was appointed General Counsel of the Conference, and he was authorized to associate himself with counsel rep(Continued on inside page)