Harrison's Reports (1958)

136 HARRISON'S REPORTS August 23, 1958 "In answer to an industry appeal to create a more orderly release of quality product, the heads of the film companies pledged their utmost efforts in that direction and statements were emanating from New York by one distributor after the other that the coming year would witness the orderly release of some of the finest motion picture entertainment ever produced. Granted that the quality of pictures this past year has been of the highest calibre, but where does the average subsequent-run theatre fit into the scheme of things? By the time one of the so-called 'blockbusters' gets around to him, he is not around to play it. This industry was built on the premise that only through reaching a mass audience could it prosper and profit. This theory has been all but discarded today when one considers the fact that the theatres are catering to a fraction of the audiences which they once enjoyed, and while television is a contributing factor, a good portion of this decline can be directly attributed to the fact that many outstanding pictures, because of both extended runs and terms, are not being seen by as many people as would normally see them if they were given wider distribution. "While I would like to be more optimistic in this report, the fact of the matter is that there is no room for optimism, in spite of all the high-sounding and optimistic statements being made by the heads of distribution. From my vantage point it wouldn't be an exaggeration to say that exhibition is thoroughly fed up with the attitude of distribution and as a matter of self-defense it wouldn't surprise me if theatremen the nation over will undertake some form of retaliation against the offending companies, feeling that it is far better to go down fighting than being buried alive without a struggle. Consequently, there is going to have to be some radical changes made in distribution and it will have to come about quickly if many of the theatres, which are finding themselves in serious difficulty because of the present state of affairs, are to survive." On arbitration, Kirsch had this to say: "On this subject it is regrettable to report that the prospects for working out an arbitration system for the industry are very remote. In view of the radically changed pattern of film selling and distribution today, it is very unlikely that any system of arbitration can be agreed upon which would offer exhibitors any measure of relief from one of the most perplexing problems plaguing subsequent-run and small-town theatres and that is the matter of availabilities. The exhibitor members of the arbitration committee have been trying to get the distributors to agree to arbitrate waiting time, but distribution has refused to consider this. "It is indeed unfortunate that our industry cannot get together on a project that would help avoid costly litigation and much of the blame for this can be placed squarely on distribution." Undoubtedly, there are some top men in distribution who will treat Kirsch's warning of exhibitor retaliation with a shrug of their shoulders, but in doing so they will underestimate, not only the gravity of the situation, but also the present militant mood of thousands of exhibitors who either have been or are being forced to the wall. There is nothing imaginary about their hardships, and many of them have reached the limit of human and economic endurance in coping with unsound sales policies that tend to aggravate these hardships. These struggling exhibitors are asking for no more than a reasonable opportunity to remain in the business they helped to build. Such opportunity is being denied to them, and when men find themselves being driven to financial failure, it is only natural for them to resort to drastic action as a matter of self preservation. Unless the distributors soon see the wisdom of effecting necessary reforms voluntarily so that common sense will prevail in their sales policies, the road ahead is going to be chaotic for all concerned. THE INDIFFERENT PRODUCERS Almost two months ago, Walter Reade, Jr., the New Jersey circuit operator, proposed a six-month moratorium on the sale of all post1948 films to television and, during the hiatus, suggested that a meeting of all interested parties be set up immediately to evolve a method of "logical and economic" distribution of films to television. He suggested also that consideration be given to his own plan, which called for the establishment of an autonomous non-profit organisation, constituted on a basis quite similar to ASCAP, to which all producers would license their complete TV rights. In effect, Reade proposed a sales control plan whereby theatrical films would be made available to TV in a manner that would least affect theatrical attendance while each producer who assigned his TV rights would be remunerated in direct proportion to his film's total domestic gross, regardless of whether his film was ever sold to TV or not, in direct proportion to the overall melon cut up each year by the non-profit organization that would handle the sales to TV. Reade announced this week that he is abandoning the plan because of the "lack of interest or enthusiasm" on the part of the producers. He disclosed that, on July 15, he wrote letters to 74 major and independent producers inviting their reactions to his plan and asking whether they would be willing to attend the proposed meeting. To date, he has received only 1 5 replies, two of which were from executives of major producing companies, with both indicating that they would not participate in such a meeting. Without a thorough analytical study, it is impossible to say whether or not Reade's plan would have been practicable. There is no question, however, that it merited close study and was a move in the right direction, particularly since the indiscriminate sale of theatrical films to television has had a proved devastating effect on theatre attendance. It is, therefore, most discouraging to note that the vast majoriy of producers contacted by Reade did not feel that such an important industry matter warranted their thoughtful consideration.