Harrison's Reports (1946)

Entered as 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 AVENUE OF THE AMERICAS Published Weekly by United States $15.00 (Formerly Sixth Avenue) Harrison's Reports. Inc., U. S. Insular Possessions. 16.50 M v .,.„« Publisher Canada 16.50 Wew Iorl£ zv' n »• P. S. HARRISON, Editor Mexico, Cuba, Spain 16.50 A Motion Picture Reviewing Service Great Britain 15.75 Devoted Chiefly to the Interests of the Exhibitors Established July 1 1919 Australia, New Zealand, India, Europe, Asia .... 17.50 Jtg Editorial p0iicy: No Problem Too Big for Its Editorial Circle 7-4622 35c a Copy Columns, if It is to Benefit the Exhibitor. A REVIEWING SERVICE FREE FROM THE INFLUENCE OF FILM ADVERTISING Vol. XXVIII SATURDAY, FEBRUARY 16, 1946 No. 7 THE INEQUITIES OF SHIFTING SALES POLICIES In recent weeks there has been a rising tide of exhibitor resentment against Paramount and Twentieth Century-Fox because of the alleged shifting sales policies both have adopted in regard to "The Lost Weekend" and "Leave Her to Heaven." " It seems that both companies believe that they had underestimated the grossing power of their respective pictures and had concluded deals with exhibitors upon terms that, in their opinion, are not commensurate with the pictures' value. Accordingly, each company has set out on a campaign to obtain revised terms from those to whom the picture had already been sold, and, in instances where deals were not concluded, each is demanding terms that are higher than those originally designated, including preferred and extended playing time. In the case of Twentieth Century-Fox's "Leave Her to Heaven," a protest meeting was held by the independent exhibitor members of Allied Theatre Owners of New Jersey, on February 4, at which time the following resolution was adopted unanimously : "WHEREAS, independent exhibitors of New Jersey have negotiated with 20th Century-Fox Film Corp. for the feature 'Leave Her to Heaven' and conducted such negotiations with the authorized representatives of the Fox Corporation; district manager, sales supervisors, and the salesmen in the New York exchange; and "WHEREAS, the percentage terms offered by the Fox Corporation at the first conference were accepted by these exhibitors but were subsequently withdrawn by the Fox Corporation who demanded in addition that the feature be given preferred playing time designated by the Fox Corporation, which amended offer was again accepted by said exhibitors; and "WHEREAS, this second offer was then also withdrawn by the Fox Corporation who demanded a higher percentage, which was also granted by the said exhibitors, but this offer too was withdrawn by the Fox Corporation, who then demanded in addition extra playing time, which demand was also granted by the said exhibitors and finally this fourth offer was also withdrawn by the Fox Corporation who then demanded a still higher percentage; and "WHEREAS, in several instances the dates from several exhibitors were accepted and confirmed by the Fox Corporation who nevertheless refused to deliver the picture under the terms agreed to at that time and made said additional demands several days before play date, and in one instance tried to impose a split figure after the picture had played on straight percentage terms, stating that the exhibitor had made too much money; now therefore be it "RESOLVED, that the independent exhibitors of New Jersey here assembled, declare their condemnation of the methods used by the 20th Century-Fox Film Corp. in selling the feature 'Leave Her to Heaven' and herewith record their protest against the shifting policies of this company and its bad faith in dealing with the independent exhibitors of New Jersey." Tom Connors, distribution head of Twentieth CenturyFox, has disclaimed knowledge of the aforementioned allegations, and he has asserted that he would investigate the matter. At this writing, he has not yet reported on his findings. In the case of Paramount's "The Lost Weekend," that company's position is explained in the following letter from Charles Reagan, its distribution head, to Mo Wax, editor and publisher of the Film Bulletin : "February 1, 1946 "Dear Mr. Wax : "In response to the request contained in your letter of the 29th, I am glad to advise you of our position on the sale of 'The Lost Weekend' so that your readers may be thoroughly informed on the subject. "It is true that we are now selling 'The Lost Weekend' at a higher sales classification than was originally designated for it. "With the amazing box-office results of the first showings, it was unquestionably plain that we had grossly underestimated the public enthusiasm for the picture. Succeeding engagements clearly proved the error of our pre-release designation and we then knew that a reconsideration of its classification was not only justifiable by its abnormal strength but was to be expected. "Our customers have been the first to recognize that the box-office performance is a reliable guide to its general price level when comparative grosses* are so sensationally established as to defy reasonable question. "Therefore, since the grossing certainty of 'The Lost Weekend' is widely accepted, we have corrected our mistake in instances where deals were not concluded. In such cases we are now selling the picture at its proper terms. Where contracts have been approved we are asking our customers to recognize voluntarily the unusual development on 'The Lost Weekend' and to agree to a revised deal in keeping with its performance. In those cases where this appeal is disregarded the picture will certainly be delivered under the terms of the contract already approved, and we hope there is no misunderstanding on this point. "On sustained results, from situations of all types and sizes, 'The Lost Weekend' continues to surpass the highest grossing releases of the season, and I feel confident that your readers will fully understand our position." Mo Wax's editorial comments regarding Mr. Reagan's explanation, which appeared in his Film Bulletin's February 4 issue, are so meaningful, and the questions he asks are so pertinent, that Harrison's Reports takes the liberty of reproducing them, in part, for the benefit of its readers: "There can be no argument with the claim that 'The Lost Weekend' is a box-office success, at least in the early runs . . . But there are vital points not covered in Mr. Reagan's otherwise candid letter which require clarification. "Recognizing the desire of every distributor to obtain the highest possible returns for his product, it is yet pertinent to observe that this desire must be compatible with equity and respect for the customer's rights. "That leads directly to a question of the ethics of withholding approval of contracts on a block of pictures for an abnormal period to await box-office results on one of the group. What of the fact that such a procedure impinges the exhibitor squarely upon the horns of an unhappy dilcmna: either accept the increased terms asked by the distributor, (Continued on last page)