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598 HARVARD BUSINESS REPORTS
first-run feature picture, short subjects, newsreels, an organ solo, and an inexpensive stage presentation or a few vaudeville acts. At various intervals, an orchestra of 10 musicians had been maintained. Some second-run feature pictures were shown but only when they were of outstanding box office value. Programs were continuous from 2:30 p. m. Admission was 25 cents before 6 p. m. and 35 cents thereafter. Box office receipts averaged about $7,200 per week, ranging from $4,000 to $11,500.
Competitors included both first-run and second-run theaters. The seven first-run houses located in the main theatrical district of the city were of particular importance. Their programs, which were built around single feature pictures, were changed weekly. Some of the programs were made up entirely of motion pictures; others included stage presentations; and still others, several vaudeville acts. These theaters had seating capacities of from 1,000 to 3,500 each. Admission prices varied from 50 cents to 65 cents with 60 cents approximating a standard. Weekly receipts ranged from $7,000 to $22,000. Three modern second-run theaters with seating capacity of about 1,500 each, were also located in the main theatrical center. Their programs, consisting of outstanding feature pictures, comedies or short subjects, and newsreels, were changed every week. Admission prices were 25 cents and 35 cents. Weekly gross receipts averaged about $6,000 per theater. Two of these houses were controlled by a national theater chain. The third was independently owned and operated.
The Rainier Theater had been in a position to compete with the theaters located in the main theatrical center, for several reasons. Its location, especially with reference to traffic arteries, was advantageous. Free parking facilities were exceptionally good. It was a comparatively large theater, and the atmospheric style of its decoration was particularly attractive. Moreover, it exhibited first-run feature pictures and charged comparatively low admission prices.
Competition did not exist in the residential districts immediately surrounding the Rainier Theater. In the more distant wealthy sections there were three competing theaters. A large chain operated two second-run ultra-modern neighborhood houses located approximately two miles apart. The third, a similar type of theater, although not affiliated with the chain, was