Harvard business reports (1930)

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464 HARVARD BUSINESS REPORTS required a careful analysis of many factors in the situation, among which might be included: (i) the status of the French industry and the opportunity for the development of the French market; (2) the effect of the development of sound pictures; (3) the relative satisfaction given by the form of legislative restriction to the various interests; and (4) the possibility of international control. It should be realized that the factors discussed do not include those questions of public welfare that are inseparably linked to the economic aspects of the problem. An examination of the status of the French industry shows that, in comparison to the United States and in relation to other leading film countries in Europe, France was considerably behind in the matter of modern motion picture exhibition. Of the 4,000 theaters8 in France, most were privately owned and operated and few circuits or first-run theaters were available for effective exploitation of picture values. Less than 40% operated daily and only 900 had a capacity of 750 seats or over.9 Only 5% or 6%10 of the French public, as compared with 25% of the American public were regular patrons of the moving pictures. Total realty investment in theaters in 1927 was estimated at $30,000,000. The reason for the undeveloped status of the exhibition phase of the industry was said to be the relatively exorbitant entertainment tax collected by the government. The total of state, municipal, and poor taxes was estimated at from 17% to 40% of the gross receipts in Parisian theaters and from 15% to 31% in all other theaters. Under the state tax, over 120,000,000 francs were collected in 1928, an increase of nearly 15,000,000 francs over similar taxes collected in 1927. It would appear, therefore, that with capable leadership and a favorable attitude on the part of the government, progress might be expected in theater construction, exhibition policies, and profitable operation. Already, American companies had initiated improvements. A theater under American control successfully adopted in 1928 the policy of continous showings and another was the first to be wired for the projection of sound and dialogue films. No anti-American feeling was evident and the American film retained great popularity. 8 Film Daily Year Book, 1929. 9 Film Daily Year Book, 1929. 10 Bureau of Foreign and Domestic Commerce, Trade Bulletin No. 617, 1929.