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INTRODUCTION 7
to certain theaters the privilege of exhibiting a picture prior to its exhibition by any other theater in the same competitive zone and of guaranteeing it a protection in terms of both time and distance from any competitive theater. Since the date of release for many pictures is unknown and since the actual first-run exhibition date even on many released films has not been determined, subsequent-run exhibitors are placed under the necessity of having their play dates left undetermined for a considerable time to come.
Prices for films may be determined upon a flat rental basis, in terms of a percentage of box office receipts, or upon a basis of some combination of these two methods. The use of percentage pricing has become increasingly common since the advent of sound pictures, but it involves some rather difficult problems particularly as related to the checking of box office returns. Whether determined upon one basis or the other, the financial terms are likely to be the result of much bargaining. A one-price policy is unknown in this industry.
The problem of selling pictures by distributors to exhibitors in blocks, as distinguished from selling individual pictures upon individual terms, is one that has caused many disputes. There it much to be said, at least in theory, for the sale of individual pictures, each upon its own merits. Aside from any legal question which may be involved, it is urged that block booking results in an exhibitor's being forced to accept many pictures which he does not desire to exhibit for any one of a number of reasons. On the other hand, distributors maintain that in many instances the local exhibitor would not exercise such superior judgment as would result in a more satisfactory selection of pictures even if given an opportunity. It is further contended that to sell pictures on an individual basis would so increase the cost of distribution as to make such a policy prohibitive for a vast majority of exhibitors.
The problem of the sale of American pictures to foreign countries is a difficult one. American producers do produce by far the largest percentage of pictures offered today in any country. Nationalistic pride and the aspirations of foreign producing companies, combined with a fear of the consequences of continuous showing of American pictures in their nation, have led to various attempts, legal and otherwise, to restrict the number of American films shown abroad. Up to the present the American interests