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Independent Motion Picture Exhibitors' Association, Incorporated1
exhibitors' cooperative association — motion pictures
Purchasing Organization — Failure of Cooperative Purchasing Association A group of independent motion picture exhibitors organized a cooperative purchasing association in order to meet the competition of the large theater chains, which were the highest bidders for high-quality first-run pictures. The association failed to operate successfully, for the following reasons: the leading producers either refused to sell to the association or charged excessive prices; lack of a common interest among the members caused incomplete cooperation; and the financial straits of some members caused them to accept offers from theater chains to buy their theaters.
(1928)
In 1928, 80 of the 200 independent motion picture theaters in New York City and Brooklyn organized the Independent Motion Picture Exhibitors' Association, Incorporated, a non-profit organization to buy cooperatively for its members the motion pictures which were to be shown on their screens.2 The theaters appointed the association their exclusive agent to buy pictures and agreed not to buy pictures direct.
For several years it had been increasingly difficult for independent theaters in New York City and its surrounding territory to secure high-grade motion pictures for first runs, inasmuch as the large theater chains with their greater buying power were able to outbid the independent theaters and secure whatever motion pictures they desired for first runs in their own New York City theaters. Persons in the motion picture industry when referring to a first run in New York City usually referred to the first run outside Broadway theaters. None of the theaters in this association was located on Broadway. The independent theaters had been forced either to show second or third runs of the more popular pictures or to show only the less popular pictures of lower quality.
1 See also Independent Motion Picture Exhibitors' Association, Incorporated, page 628.
2 See First National Exhibitors' Circuit, Incorporated, page 13.
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