Investigation of concentration of economic power; monograph no. 1[-43] (1940)

CONCENTRATION OF ECONOMIC POWER 31 the even greater achievements to come. The exhibition contract, however, contains only what is known as a schedule of contract. A few pictures which have been completed or are nearly complete may be listed on this schedule. Several may be described as containing some particular star or featured player. The stories from which several others are to be made niay be given. However, many of the pictures and in some cases all of them may be designated only by a number and a note as to the price class m which they are to fall. In accepting the contract for the block of pictures, the exhibitor in general knows no more than that he will get a certain number of pictures and that these pictures will fall in certain price classifications. Following the schedule of contract is a paragraph which illustrates how blind selling is effected. It is expressly understood and agreed that the Distributor does not license hereunder to the exhibitor any particular motion picture but only those motion pictures are licensed hereunder which shall be generally released by the Distributor as provided in the schedule above; that the announcement book, work sheet, press sheet, or any other announ'cement issued by the Distributor is issued for the pur- pose only of indicating what the Distributor plans to produce and does not con- stitute any warranty or representation that the motion pictures therein referred to or described will be generally released during the period provided in the Schedule.20 As indicated above, then, a few pictures are highlighted, some idea of the plots, names of stars, directors, or other attractive points being mentioned. On the whole, however, this is limited to a few top pictures. Then a disclaimer is included which relieves the dis- tributor from the necessity of complying with his statements. It follows that the exliibitors must buy largely upon the reputation and past performance of a particular distributor's product. In effect, insofar as the independent exhibitors are concerned, it can be cate- gorically stated that this is the only industry in which the buyer, having no idea of what he is buying, underwri^^es blindly all the product offered him. The objections of independent exhibitors to blind selling are similar to their objections to block booking. The necessity of buying pictures sight unseen prevents the exhibitor from selecting out of all those features eventually released the particular ones he might consider to be most suitable for showing in his theater. As has been previously indicated, affiliated theaters have solved the problem through the device of the selective contract. It is understandable that in selling films under the present system the actual productions sometimes fail to measure up to pre-season announcements. From this factor have arisen many complaints by independent exhibitors against distributors. Blind selling has consistently been opposed by organizations inter- ested in improving the moral standards of film entertainment. These groups have found that blind selling, combined with block booking, has prevented them from bringing pressure on the local exhibitor to permit some form of community selection of pictures. The consumer standpoint on blind selling parallels that of the inde- pendent exhibitor. Any limitations on the ability of an exhibitor to license and show the best available productions and especially any restriction making it necessary to show undesirable pictures is to the consumer's disadvantage. 20 Hearings, House of Representatives, pursuant to S. 280, Paramount schedule, p. 235.