Minutes of evidence taken before the Departmental Committee on Cinematograph Films (1936)

MINUTES OF EVIDENCE 5 May, 1936.] Mr. R. D. Fennelly. [Continued. 27 (1) include films depicting mainly news or current events, natural scenery, commercial advertisement, films wholly or mainly depicting manufacturing processes and scientific, including natural history, films. 30. It was recognised, however, that some such films might be of importance and that their exhibition should be encouraged on cultural grounds. It was accordingly provided that the Board of Trade could allow films of any of these classes to be registered for the purposes of the renters' and exhibitors' quotas on the ground of " special exhibition value ". A small number of films are registered under this proviso every year, after consultation with the Advisory Committee. Further, in order to assist their exhibition in the cinemas, British films falling within the excepted classes, other than those depicting mainly news or current events and commercial advertisements, are entitled, although not required, to be registered for the purposes of the exhibitors' quota only. There is a growing registration of such films in view of the increased output of documentary and " interest " films which are not covered by the Act. 31. For the purposes of advising the Board of Trade on the administration of the Act provision is made for the appointment of an Advisory Committee consisting of two representatives of film makers, two representatives of film renters, four representatives of film exhibitors and five independent members (one of whom is to be Chairman and one must be a woman). Under the Act the Advisory Committee has certain statutory functions to perform. For instance, all cases of quota default on the part of renters or exhibitors must be submitted to them for advice before a decision to refuse a certificate that the defaidt was due to circumstances beyond their control is reached by the Board of Trade. In practice, however, the Board consult them on other questions also. V. — The Position of the Producers. 32. The makers or producers of films are combined for trade association purposes in the Film Producers' Group of the Federation of British Industries (Secretary : Mr. M. Neville Kearney). 33. There has been a very large increase in the facilities available for making films in Great Britain since the passing of the 1927 Act. The Film Producers' Group in the course of their evidence will presumably be prepared to furnish details of the number of studios and stages which are now in existence as compared with 1927. There is no doubt however that since that date old studios have been rebuilt and re-equipped and new studios erected which on the technical side compare favourably with those of the United States. Considerable amounts of capital have been put into film production by the investing public and a number of new important producing companies have appeared. 34. A list of the principal makers of fiction and dramatic films in this country is given in Appendix III. Among the leading producers are: — Gaumont-British Picture Corporation, Ltd., with studios at Shepherd's Bush and Islington. Associated British Picture Corporation, Ltd. (formerly British International Pictures, Ltd.), with studios at Elstree and Welwyn Garden City. London Film Productions, Ltd., who are erecting large modern studios at Denham, Bucks. British and Dominion Film Corporation, Ltd. 35. In addition there are a number of producers making interest, scientific, educational, etc., films, which do not in general fall within the ambit of the Act. 36. It will be observed from Appendix III that there are a number of production companies or units which do not own studios. These companies or units are usually formed for the production of one or more films which are made either in the studios of other producers, as stages become available for letting during intervals in their own production programmes, or in studios owned by companies who specialise in letting and make few, if any, films themselves. 37. Before he embarks upon the cost of producing a picture the producer wishes, if possible, to be certain of his market. For this reason the important production companies, especially those which own studios, are in association with distributing companies. The connection between the producing and renting companies is shown in Appendix IV. The independent production units usually make an arrangement with a renter before embarking on a film. These arrangements vary in character. Sometimes the renter will make an advance towards the cost of the picture; in other cases the renter pays a lump sum down on delivery of the negative which may or may not be combined with an arrangement whereby the maker and renter share the proceeds of the distribution of the film in certain proportions; and in other cases the renter takes the picture on a sharing basis without any lump sum payment. 38. In the case of Gaumont-British Picture Corporation, Ltd., and Associated British Picture Corporation, Ltd., the process of vertical combination is carried a stage further in that they also control circuits of cinemas amounting to 330 in the case of the former and 225 in the case of the latter. The control of these cinemas assures, of course, a definite market for their product through their associated renting organisations. 39. It is understood that the Fox Film Company of America have a considerable holding in the Gaumont-British Picture Corporation which, however, does not amount to control, but apart from this there is, so far as is known, little foreign capital invested in the production side of the United Kingdom industry. Only three United States renting organisations (Fox Films, and Warner First National jointly) have acquired studios in this country for the production of the films required to meet their obligations under the Act. The remainder obtain their films from various sources — mostly from independent producers who hire studios for the purpose of making them. 40. The following tables " A " and " B " show the number and length .respectively of British and foreign long and short films registered for renters' quota during the years since the Cinematograph Films Act, 1927, became operative: — Table A. Number of films registered. Period Long. Short. All Films. (years ended March 31). British. Foreign. Total. British. Foreign. Total. British. Foreign. Total. 1929 128 550 679 150 663 829 278 1,213 1,491 1930 96 506 602 180 885 1,065 276 1,391 1,667 1931 122 556 681 53 976 1,058 175 1,532 1.7H7 1932 153 464 618 44 917 977 197 1,381 1,678 1933 159 481 643 41 741 841 200 1,222 1,422 1934 190 484 679 48 647 707 238 1,131 1,369 1935 189 477 667 67 697 820 256 1,174 1.430 1936 212 506 718 85 578 663 297 1,084 1,381