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

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CONCENTRATION OF ECONOMIC POWER 35 Because of these differences, distributors are interested in seeing that percentage pictures play on those days of the week when box-office returns are likely to be greater. This is accomplished by designating that the percentage pictures shall be exhibited on holidays or weekends. The small exhibitor frequently opposes this practice. Primarily, he objects to any restriction which keeps him from operating his theater as he pleases. In some cases, the small theater operator would prefer to use a less satisfactory picture on a weekend, knowing that in any case attendance is likely to be satisfactory at that time, and use a stronger drawing attraction to bolster midweek returns. The practice may maximize the distributor's revenue without performing a like function for the exhibitor. Consumer interest in the practice of designating play dates is probably small. Where an exhibitor shows the more desirable pic- tures in midweek, the consumer, who usually has less leisure at that time, may find that his interests lie parallel to those of the distributor. On the other hand, control of play dates by distributors may result, for example, in weekend bookings for sophisticated features in a theater whose audiences in the aggregate may prefer films more suited for general family entertainment. The ability to designate play dates is another indication of the large distributors' control over the Sources of supply of the industry and of the unequal bargaining strength of exhibitors and distributors. On the whole, however, the practice is primarily an industry rather than a consumer problem. OTHER PRACTICES AFFECTING DISTRIBUTDR-EXHIBITOR RELATIONSHIPS The practices discussed up to this point by no means exhaust all sources of friction between distributors and exhibitors. A minor one which may be mentioned is the practice of making score charges. The score charge is a fossillized remnant of the pre-sound days of the industry. Before the development of sound, distributors usually supplied with each film an appropria't^« musical accompaniment. The fee charged for this service was known as a score charge. In the first sound films, the sound was supplied by discs which were played in synchronization with the film, and the score charge was attached to these disks. Today, sound is recorded directly on the film. Never- theless, distributors continue in many cases to make a score charge. This irritating and apparently useless appendage of an earlier era serves constantly to annoy exhibitors who find this extra charge in their license agreements. More important in point of distributor-exhibitor relationships is a practice charged to affiliated distributors by independent exhibitors. It has been alleged that exhibitors have been coerced into paying higher film rentals or into relinquishing an interest in a profitable theater by threats that the distributor would build or acquire a com- peting theater. Such a threat is powerful indeed, since the inde- pendent exhibitor is well aware that a competing affiliated theater will usually receive a choice of the available pictures by virtue of the cooperative arrangements existing between the major companies. In this field it is difficult to distinguish between the operations of the affiliated company as an exhibitor or as a distributor. Powerful independent theater chains have found the means to enter localities