We use Optical Character Recognition (OCR) during our scanning and processing workflow to make the content of each page searchable. You can view the automatically generated text below as well as copy and paste individual pieces of text to quote in your own work.
Text recognition is never 100% accurate. Many parts of the scanned page may not be reflected in the OCR text output, including: images, page layout, certain fonts or handwriting.
SIDLEY PICTURES CORPORATION 335
and it cannot, therefore, be urged that percentage pricing would reveal any great amount of information not already in the possession of the distributor. Furthermore, the factors of uncertainty in the situation already enumerated were so substantial that it is probable that greater fairness would result to both distributor and exhibitor if some form of percentage pricing were resorted to. Many instances exist where exhibitors who had consistently refused to buy silent pictures on a percentage basis were quite willing to buy sound pictures in this manner. In addition, the percentage schedule could be so arranged that the guaranty might be such as to place the distributor in effect in a position where he would share in the losses. It would, therefore, appear that percentage pricing was a justifiable move under the circumstances.
A final issue is that of determining the differential between sound and silent pictures. This was not an issue except when a sound version and a silent version of the same picture were produced. In such cases various methods of determining the differential were possible. One was to establish an arbitrary percentage of differential dependent somewhat upon the size of the house. This might be objected to upon the ground, first, that it would be based on mere precedent rather than on cost or receipt figures, and secondly, that it still left an undue opportunity for bargaining. A second possibility was that of basing the differential on the relation of film rental to gross receipts. An objection to this plan was that the exhibitors were inclined to be negligent in promotional work and to rely upon the name of the picture or of the star, or upon the advertising of the distributor to sell the picture. Another possibility was that of determining by test rather than merely by an expression of judgment, the potential difference in box office receipts. This was open to the objection that receipts would vary widely as between different theaters. A final possibility was to establish a somewhat arbitrary percentage as a result of bargaining between distributor and exhibitor. In effect this was usually the method pursued. Actually, until sound pictures had been tested by exhibition and the total costs as compared with those of silent pictures were known, any differential would necessarily be an expression of judgment.
It must, of course, be apparent that a mere change from flat rentals to percentage pricing would not necessarily affect the prices paid by exhibitors. The character of the guaranty demanded and the manner in which the split was operative would determine the actual amount paid by exhibitors. November, 1929 H. T. L.