The international photographer (Jan-Dec 1931)

December, 1931 The INTERNATIONAL PHOTOGRAPHER Thirty-jive Small German Producers Slipping Heavy Sound Royalties Averaging 100,000 Marks a Subject Driving Weaker Firms Out of Business Entirely By GEORGE R. CANTY United States Trade Commissioner, Paris NUMEROUS notes forwarded to the Bureau of Foreign and Domestic Commerce from time to time have emphasized the gradual demise of the small European producers unable to maintain production under sound film conditions. It is not apparent that this extinction of the socalled mushroom producer has yet to reach its true level, for in Germany during 1930 44 companies turned out one or two films each, as compared with 61 companies in 1929. 42 in 1928, 62 in 1927, and 60 in 1926. These figures are significant. Though these companies registered lowest numerically in 1928 — Germany's peak production year, when only the rankest kind of mushroom producer confined himself to one or two films — 61 producers of this category operated during 1929, practically the last year of the silent film era. In 1930, the first year of the sound film era, the number of mushroom producers (44) would appear to indicate that the death knell had not yet been sounded, nothwithstanding that this number was 28 per cent under that for the preceding year. It does, however, represent a tremedous decline when it is considered that many of these producers were, in reality, making what will prove to be their last attempt at production, unless Tobis royalties charges are considerably reduced, and that 1931 will see a still smaller number remaining. Dr. Alexander Jason, who occasionally writes in the German trade press on economic surveys of film production, recently published an article in the French trade press. While his figures as they relate to the number of productions turned out annually do not agree with official statistics that have been previously reported they do substantiate his purpose in showing the decrease of these mushroom producers and in a sense the stranglehold that Tobias is getting on the German film industry. Dr. Jason's article in translated form is submitted herewith. The department's usual waiver of responsibility accompanies this translation. Financial Sacrifices Statistical material available on film production in Germany during 1930, the first sound film year, is a very interesting subject from various angles. The change over to sound film obviously necessitated financial sacrifices especially during the early part of the sound film era, and, owing to entirely new problems and the lack of expe rience in technical and economic phases, considerable insecurity resulted in the production field. Today, the situation is entirely different; the foundation of sound film production has been clearly established and the statistical material available in this conection for 1930 can well be taken as a basis for an exact study of the economics of the film situation. If it is considered that the average production cost of a silent and of a sound film Is 175,000 and 275,000 marks, respectively (the latter amount including 175,000 marks actual production costs and 100,000 marks for sound-film royalties), it is easy to estimate the capital spent on film production in Germany during the period from 1926 to 1930, inclusive. It is, of course, obvious that the production costs of each individual film differ considerably; in fact, they have varied between 20,000 and 2,000,000 marks during the four-year period from 1926 to 1929, so a very conservative estimate may fix the average production price of a silent film at 175,000 marks. Taking this average cost as a basis the total amount spent on film production during the five-year period in question was probably as follows: 1923, 185 feature films, total cost 32,375,000 marks; 1927, 242 feature films, total cost 42,350,000 marks; 1928, 224 feature films, total cost 32,200,000 marks; 1929, 183 feature films, total cost 32,025,000 marks; 1930, 146 feature films, total cost 35,500,000. Total five-year period, 980 feature films, total cost 174,500,000; yearly average 196 feature films; avert ge yearly cost 36,300,000 marks. Less Films, Same Budget It will be observed that the number of feature films produced in 1930 declined considerably as compared with any of the preceding years, but the total production costs, on the other hand, were only 750,000 marks under the average yearly cost. Another interesting point is the evolution in the classification of production companies. 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