Harvard business reports (1930)

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BAILEY THEATER 615 In January, 1929, Mr. Bailey made application for membership in the Exhibitor's Co-Operative, Limited. His decision was based on the possible savings in film rentals for his theater, and a confidence in the practical manner by which the Exhibitor's Co-Operative, Limited, was endeavoring to secure such economies. Commentary: From the events presented in this case, it would appear that the Exhibitor's Co-Operative, Limited, instituted a successful attempt at cooperative film buying. The experience should be compared with that of the Independent Motion Picture Exhibitors Association, Incorporated,3 and also with that of First National Exhibitors' Circuit, Incorporated.4 Several distinctive features appear in the situation here presented. Chain theater competition was distinctly less keen in Toronto than in New York City. Further, the independent outlets in the former city were necessary if distributors were to realize anything approaching complete coverage. Again, this organization was effected before the large producer-distributor groups had achieved a position of dominance within this area. An interesting provision permitted any theater in the Dominion to affiliate with this organization. If this provision were adhered to rigidly, it would open the way for subsequent control by producerdistributor controlled interests. It may be noted also that the experience of First National Exhibitors' Circuit, Incorporated, indicated that it was necessary to protect a cooperative association specifically against the acquisition of such control. It is also of interest to note that while this cooperative organization was apparently successful in obtaining a reduction in average film rentals, it was unable to secure any satisfactory readjustment in the matter of protection. Solely on a basis of the facts presented in the case, it would appear that Mr. Bailey was well advised to associate himself with the cooperative movement. November, 1929 H. T. L. 3 See page 616. 4 See page 13.