Harvard business reports (1930)

Record Details:

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WILLARD THEATER 591 sound-on-film pictures. The theater maintained a continuous show from 1 p. m. to 11 p. m. with vaudeville in the afternoon and evening. As an independent theater, the Willard was second to the large chain theaters in protection and enjoyed first-run privileges on the releases of certain producing companies. Competition was largely centered in two large chain organizations which operated a number of theaters in Brooklyn. These two competing chains, with the exception of a few theaters, never showed the same pictures. For several years it had been increasingly difficult for independent theaters to secure high-grade pictures for first runs3 inasmuch as the chains with their greater buying power were able to outbid the independent theater and secure whatever pictures they desired. A theater chain, when making its purchases, demanded that it be permitted to show the pictures first and usually required that all its theaters, whether first-run or not, be protected against any showing by a theater outside the chain. The main objection held by the manager of the Willard Theater to the buying of motion pictures on a percentage basis was the necessity of permitting the distributor to check gross receipts at the theater during the playing of a particular picture.4 In negotiations with the salesmen, moreover, the manager would find it necessary to substantiate arguments for a lower percentage rental by furnishing information as to receipts on previous showings of similar pictures. The distributor would utilize this information, together with that secured by the "checker," in bargaining for higher rentals on future releases. If the percentage arrangement on one picture proved profitable to the distributing company, in the opinion of the manager, the distributing company would stipulate a similar percentage on all its future pictures or might require as a guaranty the amount earned by that picture. Thus the precedent set by a good picture might be unfavorable to the exhibitor. If the percentage proved unprofitable to the distributor, he would require a higher percentage on future releases. Salesmen were inclined to boast of the performance of a theater buying on a percentage basis in trying to 3 First run in Brooklyn was usually after Broadway showings, with seven days' protection over second run. 4 See Shafer Pictures Corporation, page 336.