Harvard business reports (1930)

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WARNER BROS. PICTURES, INC. 453 Warner Bros. Pictures, Inc., and is borne out by the statement in the case to the effect that the rental charges for Warner trailers were substantially less than for Clarion trailers. The pressure for free trailer service was less severe in 1929 than it had been originally. In the theaters owned by Warner Bros. Pictures, Inc., no question would arise, obviously. In fact, since the Clarion Trailer Corporation, as an individual concern, had charged Warner Bros. Pictures, Inc., for the trailers of its own pictures, some actual saving might result. With other theaters, two conditions had changed since the more general use of percentage pricing had developed. In some cases, provision had been made for free service on all trailers to exhibitors who, buying on a percentage arrangement, agreed also to use the entire production of that producer. There was apparently a trend in the same direction on all trailers for pictures sold on a percentage basis. Producers were adopting this policy on the theory that such trailers furnished real advertising for the pictures in which both distributor and exhibitor were financially interested. From the distributor's viewpoint, moreover, the policy offered an opportunity for bargaining that he was not loath to utilize. Such opportunities did not exist when the trailers were sold by individual trailer companies. April, 1930 H. T. L.