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548 HARVARD BUSINESS REPORTS
"Saada," first Egyptian film, Ibsen's "The Wild Duck," with Werner Kraus, Debate between H. G. Wells and Aldous Huxley (sound), "The Black Crossing" (African).
While gross revenue for the Century Theater in 1928 was equal to that of 1927, it was apparent that only first-class entertainment would insure satisfactory profits in 1929.
Commentary: In essence this case presents a theater whose character was fundamentally changed by virtue of a change in the character of the neighborhood in which it was located. From a house offering premiere exhibitions, it became one in which pictures of distinctive merit were shown. It then turned to revivals of old pictures, next stressed imported pictures, and finally considered introducing talking pictures. Since most imported pictures were not talking pictures, this change obviously would have meant an abandonment, at least in part, of the showing of such foreign-made productions.
There was little probability that distinctive pictures could be shown at this theater. It was a direct competitor with the large Broadway houses. Theaters occupying high rental sites and providing every convenience for their patrons were able to charge advanced prices for admission and to exhibit pictures for extended runs. The Century Theater probably could neither charge the admission price nor obtain the number of patrons adequate to enable it to compete effectively in the purchase of distinctive pictures. The development of neighborhood theaters throughout New York City make it unlikely that a theater located as was the Century Theater could attract patrons for second or third-run exhibitions even though the pictures had substantial merit.
It would appear, therefore, that the theater should have exhibited the best foreign silent pictures which it could obtain and seek to secure, at the best rental possible, those American productions which had proven their merit. Since there would probably always be a considerable number of people who preferred silent to sound pictures, and since practically every theater within the area upon which the Century Theater would draw was exhibiting sound pictures almost exclusively, it is possible that this theater could gain by exhibiting a program made up wholly of silent pictures, thereby offering a quite distinctive form of entertainment, a fact which might well be emphasized. It is probable, furthermore, that the theater had an advantage because of its appeal to persons, living or working within the immediate vicinity of the Broadway district, who were deskous of obtaining cinema entertainment at more moderate prices than those prevailing at the majority of the theaters within the Times Square area.