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INTRODUCTION 5
some picture in which the exhibitor claims that other actors or plots have been substituted for the ones which he thought he was to get.
Two other problems of major significance concerning production may be mentioned. One relates to the possible adaptation of particular pictures to specific segments of the market. Up to the present practically nothing has been done in this direction except with the production of distinctly educational or industrial films. Those primarily responsible for production have contended that it is impossible to adapt a picture to the desires of particular groups of people. It is contended further that pictures which are a success in one part of the country of necessity will be successful elsewhere, in spite of repeated experiences to the contrary. The answer to the question as to whether or not pictures should be made with a view to satisfying particular interests of particular groups is dependent not only upon careful analyses of the markets but also upon whether or not the numbers of persons in any group would be great enough to warrant the necessary expenditure. Adequate attention has not been given to this aspect of production.
The other major problem to which particular reference may be made deals with the relationship between the cost of production and the selling price. It is usually contended that a producer cannot tell the value of a picture for exhibition purposes until it has actually been exhibited to the public and that this value bears no relationship to the cost of production. On the other hand, at least one of the cases contained in this volume involves the use of a contract in which the definite assumption is made that a specific relationship between the production cost and the selling price does exist. Furthermore, it should be noted that distributors do actually price a majority of pictures before they are completed when entering into contracts with the exhibitors. It is entirely possible to carry this correlation between costs and selling price1 too far. It must be said, however, that much loose
1 The terms "sale" and "lease" or "rentals," as commonly used in the industry, are somewhat misleading. Actually no film is sold to an exhibitor save in very rare instances. The title to the negative film and to all positives made from it remains permanently with the producer; hence no sale occurs. Strictly speaking, such films are neither rented nor leased. What actually happens is that the distributor who holds a copyright to a picture grants a license to an exhibitor, giving him the right to show that picture, such right being confined to a designated theater "at the location and for the period of time set forth in each license agreement."