Harrison's Reports (1949)

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 Publisher Canada 16 50 New York 20, N. Y. Mexico, Cuba, Spain 16.50 .u^,.,, „ . „ P. S. HARRISON, Editor Great Britain 17 50 n A ™ « Future Rev.ewing Service Australia, New Zealand, ' Devoted Chiefly to the Interests of the Exhibitors Established July 1, 1919 India, Europe, Asia 17.50 T. . , „ ,. . 35c a Copy Editorial Policy: No Problem Too Big for Its Editorial Cirri* 7 4fi?!> lopy Columns, if It is to Benefit the Exhibitor. C 6 7"4622 A REVIEWING SERVICE FREE FROM THE INFLUENCE OF FILM ADVERTISING Vol. XXXI SATURDAY, MAY 14, 1949 No. 2fj THE NEW 20th-FOX SALES POLICY Under the heading, "A Clear Statement of Policy," written as the result of Twentieth Century-Fox's nationwide sales survey, Mr. Spyros P. Skouras, president of the company, has issued the following statement: "In recent years, all branches of the motion picture industry — Production, Distribution and Exhibition — have been caught between a rise in costs and some decline in box-office. Unless steps are taken to resolve this pressing problem, film revenue will no longer sustain the continued production or exhibition of high quality motion pictures. I have sought an answer to this problem based upon three principles, which always have been uppermost in my mind: "That the stability of this industry and its esteem and influence throughout the world must be constantly fought for and advanced; that the prosperity of this industry requires a prosperity in all three of its major branches: Production, Distribution and Exhibition; that progress is safeguarded only by the encouragement of the production and exhibition of quality motion pictures. "This challenge confronting our industry today had to be met by alert, intelligent, straightforward action. Therefore, it was only natural that I should turn for assistance to my old friend, Al Lichtman, for whom I have always had the greatest respect as a genuinely constructive thinker in our industry. His career, as head of distribution for a number of major companies, always has impressed me as having been most creative, with a view to the long range betterment and greater prosperity of all branches of our business. "I turned to him for this task. I felt that he was the one man whose recommendations would be aimed solely at having the exhibitor and our company obtain the best possible returns from our pictures in all types of theatres. "Together with Andy W. Smith, Jr., General Sales Manager, Mr. Lichtman initiated a survey which involved an analysis of the sales operation of all our exchanges, meetings with exhibitors, as well as a careful study of all of our contracts with every theatre. These gentlemen examined the methods of exhibition and exploitation of our films in all types of communities throughout the country. "Charles Einfeld, who heads our advertising, publicity and exploitation also participated in the survey and was most valuable because of his wide knowledge of general industry affairs. "Now, the survey has been completed, the facts analyzed and a number of conclusions have been reached. These conclusions have been thoroughly discussed with every member of our sales organization and with a number of outstanding, representative exhibitors, both large and small. "It is these conclusions which form the basis of the 20th Century-Fox Sales Policy. They indicate that existing conditions do not call for revolutionary plans. But they have revealed to us that it is now possible and desirable to institute certain improvements in distribution methods which will prove beneficial to those playing our product. It is this policy that I now present: "SALES OPERATION "Our policy provides that each Division Head, Branch Manager and Salesman will conduct his business in his own territory as if he were the owner of that business. Specifically: "Under this procedure, our representative is developing a sound, cooperative and firm business relationship with each account through fair dealing and honest representation of product so as to avoid unnecessary bickering on the terms of each picture. As a result of his full responsibility to the situation, the 20th Century-Fox Representative will offer the exhibitor still higher forms of service, such as exploitation ideas, special promotional angles and material and the latest merchandising concepts. This will represent additional direct assistance in attracting the greatest poten-tial audience to the theatre. "Upon receipt of a print, the Division Head, Branch Manager and Salesman will screen it, discuss its value and the conclusion they arrive at will determine the general policy under which that picture will be distributed in that territory. "Under the present conditions of buying and selling, our sales representatives must be able to make quick, binding decisions because the exhibitor needs to know as far in advance as possible the pictures he will play, since his backlog of product is so limited. Therefore, we have given our salesmen the widest latitude so that they will not have to refer their deals to the Home Office for approval. Where we have given responsibility, we have also given authority. "METHODS OF SALE "This company's approach to sales is based upon two precepts: — (a) There can be no arbitrary method of doing business. We seek to do business in the way the customer prefers, consistent with a fair and square deal, (b) Since pictures are not sold on a basis of cost but on their ability to earn, each film investment represents a major risk to the producer. Therefore, every opportunity must be given a good picture to earn its full potential for both the exhibitor and the distributor. "Our survey reveals that where it is practicable and desirable to do business on a percentage basis, the one method of sale that stands out beyond all others as the fairest, most efficient, most progressive and most mutually beneficial is the sliding scale, which was originally conceived and introduced by Al Lichtman. "1. The Sliding Scale. This is the incentive method. There is incentive to promote the picture. There is incentive to book it at the best playing time. Under the Sliding Scale every picture finds its proper level, which encourages the exhibitor to run it as long as profitable. It is this incentive which in turn provides the incentive to the producer to continue in his efforts to make ever finer, stronger, box-office films. "2. Flat Rentals. Many exhibitors throughout the nation, particularly those in small towns and late subsequent runs'. prefer to buy their pictures flat rental. That is how wc shali sell them. We have devised a system of designating flat rentals for the small exhibitor, who is least able to carry the big load imposed by these times. This method will function for him just as fairly as if the sliding scale were in operation in his theatre. (Continued on last page)