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Universal Pictures Corporation producer and distributor — motion pictures
Sales Integration — Establishing Chain of Theaters to Insure Steady Outlet for Films. A corporation producing and distributing motion pictures, hoping to secure a steady outlet for its pictures, decided to acquire a chain of theaters, and chose to locate its theaters in small urban centers rather than in metropolitan centers.
(1925)
The Universal Pictures Corporation owned and operated a group of 13 motion picture theaters for the sole purpose of advertising and exploiting its films. In 1925 it was concerned with the problem of securing a steady outlet for its films and decided to acquire a chain of theaters for that purpose. It had been suggested that the company build up a chain of medium-size theaters in small urban centers. It was necessary that the company decide whether to adopt this suggestion or to follow the practice of other motion picture producers, who were building up chains of theaters in the larger metropolitan centers.
The Universal Pictures Corporation was one of the leading producers and distributors of motion picture films in the United States. It had been established in 191 2 by one of the pioneers in the industry. It produced all types of films, including features, newsreels, short comedies, and such other short subjects as informational and advertising films. Its administrative, financial, and distribution headquarters were in New York City and its production headquarters at Universal City, California, where it had its own studios. The company's films were distributed through its own organization under the direction of a general sales manager in New York City. This organization maintained 36 exchange offices throughout the United States each of which served a definite sales territory. A force of 150 salesmen operating from these exchanges sold the company's films to exhibitors.
The volume of sales of the company's products had been large, approximating $21,000,000 in 1925. The company had been selling to all classes of exhibitors, including those who
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