We use Optical Character Recognition (OCR) during our scanning and processing workflow to make the content of each page searchable. You can view the automatically generated text below as well as copy and paste individual pieces of text to quote in your own work.
Text recognition is never 100% accurate. Many parts of the scanned page may not be reflected in the OCR text output, including: images, page layout, certain fonts or handwriting.
CHAPTER III OBSERVATIONS The production and distribution branches of the motion picture industry are domhiated by five large companies. These are flanked by three satelhte organizations unable in their own economic interests to oppose the policies of the controlling five. It has been made extremely difhcult, if not impossible, for important new competition to enter production or distribution. The present companies tlirough contract agreements control the motion picture players and directors of established reputation, as well as other persons of high technical ability. Production personnel and production equip- ment may be jointly used through mutual loans. Facilities are not generally available to others on these terms. The control of production and distribution by these companies is confirmed by their ownership of a most important segment of the motion picture theaters of the United States. A pretentious inde- pendent production in order to be profitable must be shown in at least some of these theaters, and in general this can be achieved only by entering into a distribution contract with one of the major com- panies. This fact makes it extremely difficult to finance any inde- pendent production unless such arrangements have already been made. In their relationships with exhibitors these companies have demon- strated similarity in policy and action. Various practices have been developed to maintain their control over this field and to render it profitable. Where competition has proved counter to the joint in- terests of these companies, cooperation has been substituted. Many of the practices initiated and perpetuated by these companies must be considered definitely inimical to the interests of the consumer. The motion picture industry is not imique in the sense that it is dominated by a few large companies. An even higher degree of con- centration may be found in some other industries. But in many of these industries it can be demonstrated that combination has resulted in real economic benefits to the consumer. It is, therefore, pertinent to inquire what economic advantages have accrued to the consumer from the degree of concentration which exists in the production and distribution branches of the motion picture industry today. A full and adequate discussion of this question would require information which is not available to the authors of this rep'ort. However, a few significant items may be considered. So far as pro- duction is concerned, the question to be answered is whether a larger number of producing units, each making a smaller number of pictures, would increase unit costs of production or lower the standard of film entertainment. In this connection the experience of the United Artists Corporation is perhaps suggestive. The pictures distributed by this company almost uniformly meet a high standard of quality. Moreover, the 286782—41—Xo. 43 5 53