Journal of the Society of Motion Picture Engineers (1930-1949)

boxoffice pull was theater television, not the movie attraction on such bills. Theaters charged as little as 54^ net admission for the first several theater televised fights. There was no trouble selling out on nights when film business was ordinarily in the doldrums. As theatermen saw the public demand and satisfaction, they began to adjust admission prices upward. Moreover, exhibitors began to realize that a theater television event was unique — entirely different from a film which is shown consecutively, or even a live stage show that is repeated throughout its run. A unique, televised event valuable for the moment — requires special handling and pricing. By the time of the Robinson-Turpin bout, theaters had adjusted their admission prices to an average well over $2.00. Every theater carrying the fight sold out, evidencing the public's enthusiastic acceptance of this new entertainment medium. The average theater television gross was $5,000 per theater, with seating capacities ranging from 1,100 to 4,000 seats. It became apparent that higher prices for earlier theater television events might have resulted in profits then, too. Moreover, concession sales in theaters boomed, increasing as much as 400% above average. I would like to give you an idea of theater economics on a successful theater television event at this early period. Perhaps the best way to do this is by taking a specific example: the economics of Theatre X, an actual theater, for one of last summer's TNT fights. Theatre X has 3,300 seats. With a $2.40 gross admission price, and a sellout with 473 standees crammed in, the net receipts, after taxes, were $7,500. Total television costs to the theater (relatively high because of so few theater installations) were $4,000, leaving an operating television profit of $3,500. The deduction of normal house expenses and film distributor costs still left this exhibitor with a whopping profit for a single theater tele vision show. His only regret was that he had to turn away thousands of disappointed people, for lack of room. The economics of theater television last summer on such individual events clearly pointed up future prospects. If this kind of operating profit could be produced at the outset, with only a handful of theaters, the outlook for programs carried by hundreds and then a thousand or more theaters is fabulous. The third factor affecting early theater television — the absence of a regular, year-round flow of programs — is due in part to the newness of the medium. The development of entertainment attractions, to go along with outstanding sports events, has preoccupied those of us in theater television these past several months. The entertainment desirable for theater television must, of course, be superior. Even now, theater television is growing closer to the number of outlets necessary to support regularly high-cost presentations and talent. In the developmental work put into entertainment for theater television recently, talent and craft unions were faced, for the first time, with making decisions on theater television. Most of these unions have recognized the importance of this new field and its gainful employment and compensation potentials for their memberships, as well as its public service aspects. Consequently, their attitudes are becoming progressively more cooperative. Meanwhile, however, time has been consumed in establishing a basis for entertainment in theater television. It is encouraging to report that there is a wealth of superior talent and entertainment eagerly awaiting the development of theater television. There is no lack of great entertainment, superior to home television and different from mo vies, for theater television programs. Once the ground rules have been worked out, TNT will launch a schedule of these great programs. Of paramount importance in limiting the past presentation of theater television 142 August 1952 Journal of the SMPTE Vol. 59