Harvard business reports (1930)

452 HARVARD BUSINESS REPORTS but a fairer summary of the picture can be given. Moreover, and of paramount importance, a real interest in the trailer itself can be developed. When actual entertainment value is given to the picture itself, closer attention is devoted to it by the audience. Instead, therefore, of merely being tolerated, it becomes a real part of the program. Consequently, the audience is better pleased with the performance it is attending, and it is more likely to look forward with keen anticipation to the coming attractions to which its attention has been directed. The second major consideration relates to the policy of Warner Bros. Pictures, Inc., in undertaking to produce and distribute its own trailers. There are several potent arguments against such a policy. First, it appears that the Clarion Trailer Corporation had had long experience in the trailer business. Secondly, the Clarion Trailer Corporation had apparently been successful, as is indicated both by its steady growth and by the number of substantial accounts it had. Again, a general motion picture producer might fail to give the same attention to the quality and service of a trailer business as would the Clarion Trailer Corporation, whose entire experience and income was involved with this one type of product. Finally, the case indicates that, at least earlier in the development of the industry, motion picture companies had produced their own trailers and had given up the practice, apparently because of increasing pressure from exhibitors who sought to obtain trailer service gratis. All these arguments have real weight. For such companies as Warner Bros. Pictures, Inc., however, it does not appear that these conditions should prevail. For one thing, there wTas no inherent reason why the advertising department of this company should not give just as serious and as intelligent attention to the production of effective trailers as should any independent company. In fact, since the scenarists, casts, and directors were all under the company's immediate control, trailers of really superior quality should be more probable, particularly if fashioned along the lines indicated in this commentary. Again, the cost of distribution should be less. Warner Bros. Pictures, Inc., had a completely organized and functioning distributive organization, including distribution centers, salesmen, and bookers, presumably rendering satisfactory service to the exhibitor. WTith the Clarion Trailer Corporation the entire organization functioned from 3 exchanges, whereas Warner Bros. Pictures, Inc., had 35. It must be recalled, moreover, that with the Clarion Trailer Corporation the trailer business was compelled to bear the entire cost, whereas with Warner Bros. Pictures, Inc., the cost could be borne jointly by trailers and other films. This fact is of significance even though the trailer business of the Clarion Trailer Corporation was substantially larger in total than the volume of the trailer business of