Harvard business reports (1930)

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CHAIN THEATERS, INCORPORATED 553 the outstanding high-class vaudeville theater. Its status as such was of decided importance in competition. He was not unmindful of the apparent decline in the popularity of vaudeville, but he believed that the public already had shown its aversion to synchronized vaudeville skits and soon would return its patronage to legitimate vaudeville. Furthermore, he believed that the Willamette Theater, unless it presented motion pictures all of which were of outstanding box office values, would find it difficult to compete steadily with de luxe theaters showing both motion pictures and stage presentations. Commentary: The primary issue in this case deals with the character of the program to be shown, and not with the attitude of the company toward union employees. It may be noted, however, that the policy of the executives was apparently somewhat shortsighted, unless, as the general manager believed, the musicians' union would not maintain its position when it realized that the company would not acquiesce in its demands. The vaudeville actors employed by the theater were also unionized. It would appear that they were willing to compromise with the management. This willingness indicates that they were not in sympathy with the musicians' attitude. It further suggests that they fully realized that fundamental conditions were undergoing a change, and that they could not expect to maintain their former position. The American Federation of Musicians was apparently of the same opinion. For the musicians to insist upon full compliance with their demands, therefore, would appear unwise. The decision of the company to show three performances a day and perhaps to operate a continuous program confined to motion pictures was doubtless wise. It solved the problem of the additional wages demanded by the musicians. It also eliminated the expense for vaudeville actors. There probably would be some increase in film rental cost, since the management proposed to run high-grade pictures exclusively, and since, if the new policy were a success, distributors would insist upon a higher price than formerly for any film. It may also be noted that the change from vaudeville was not a radical one for this company, since pictures were the major attraction at most of the company's theaters. Perhaps the real question was whether or not the decline in the demand for vaudeville was permanent. It is to be seriously doubted whether the belief expressed by one executive that there would be a reaction in public favor toward the legitimate theater to the detriment of the motion picture houses was well founded. Whether such reaction would take place was problematical. Further