Harvard business reports (1930)

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RKO Productions, Incorporated PRODUCER — MOTION PICTURES Merchandise Adaptation — Motion Pictures Supplied with Both Disc and Film Methods oj Sound Reproduction. Previous to 1929 a company producing motion pictures had recorded its sound pictures by the soundon-film method only, rather than by sound on disc. Although it was to the interest of the group of companies to which this producer belonged to encourage the sale of sound-on-film equipment and although disc recording would increase the company's production and distribution costs, the company decided to supply discs as well as sound on film for the reproduction of its 1929-1930 product, since the trend of the industry was toward supplying both mediums. (1929) In planning its program for the 1 929-1 930 season, RKO Productions, Incorporated, found it necessary to determine its policy relative to supplying discs for the reproduction of sound pictures. During the previous season, the company had recorded its sound pictures by the sound-on-film method exclusively. In April, 1929, the vice president in charge of distribution believed that market developments necessitated a careful reconsideration of the existing practice. RKO Productions, Incorporated, was incorporated late in 1928 as a subsidiary of the Radio Corporation of America to take over the assets and business of FBO Productions, Incorporated, and its distributing subsidiaries, which included FBO Pictures Corporation, FBO Pictures Corporation of Canada, Ltd., and FBO Export Corporation. These subsidiaries later became RKO Distributing Corporation, RKO Distributing Corporation of Canada, Ltd., and RKO Export Corporation, subsidiaries of RKO Productions, Incorporated. The latter company was one of the largest companies in the industry, producing and distributing all types of pictures, except newsreels, including specials, features, "westerns," comedies, and short subjects. Branch exchanges were maintained in 34 cities of the United States and Canada, and in the larger cities in foreign countries, with approximately $11,000,000 in sales in 1928. 144