Harvard business reports (1930)

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Independent Motion Picture Exhibitors' Association, Incorporated1 exhibitors' cooperative association — motion pictures Purchasing Organization — Cooperative Association Formed by Independent Exhibitors to Meet Chain Competition. A group of independent motion picture exhibitors incorporated as a cooperative association in order to meet the competition of the chain theaters which were able to outbid the independent exhibitors on first-run pictures. The purchase committee of the association collected information from members as to previous buying policies and purchased in accordance with the desires of the majority. (1928) In 1928, exhibitors operating 80 of the independent motion picture theaters in New York City and Brooklyn organized the Independent Motion Picture Exhibitors' Association, Incorporated, to purchase cooperatively the motion pictures to be exhibited by its members. Independent exhibitors in Greater New York had experienced difficulty in purchasing early runs of popular motion pictures because of the competition of the large theater chains and their greater buying power. This association, therefore, was organized in an attempt to consolidate the buying power of the independent theaters. All members of the association signed operating agreements by the terms of which they conferred upon the association power of attorney to purchase pictures and agreed not to buy individually any motion pictures directly from distributors or producers. The by-laws of the organization authorized a special committee, composed of two members of the board of directors and the president, to direct the purchasing of pictures. The members of the association agreed to abide by the action of this committee. Early in 1928 this committee made an effort to ascertain what pictures the members desired for the 1928-1929 season and on what terms their needs could be met. 1 See also Independent Motion Picture Exhibitors' Association, Incorporated, page 616. 628