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

MINUTES OF EVIDENCE 43 12 May, 1936.] Mr. F. W. Baker, Mr. M. N. Kearney, Mr. A. Korda, Mr. N. Loudon and Captain the Hon. R. Norton. [ ( 'mil i II in / trying to get a foothold in the American market as long as I can remember, but there have undoubtedly been many serious efforts over the last 10 or more years, and to-day, as you know doubtless, there is a revival of the endeavour to get British pictures on to the screens in America, and it is encouraging — I do not think one could say very much more than that. We do know of British films that have had remarkable screening time in America. 162. (Sir Arnold Wilson) : Were they the best films or the worst? — They were the best British films. 163. (Chairman): Then, in paragraph 7 (b), you point out the danger of decreasing the British industry and the likelihood of American interests taking advantage of it to hold the exhibitor to ransom. I suppose the contrary tendency would have a contrary effect? If too strong protection is given to British producing industry, there is a danger that they may in their turn impose ? — I do not think so, my Lord, because we have not seen that in other industries. One remembers the time when most of our roads were covered with American cars ; but to-day anyone of us can buy a motor car to suit his particular purse in this country. Protection has made that industry and increased production— and has increased production at the right prices. 164. It is so tremendously costly to produce films that it must remain in the hands of comparatively a small number of groups, and is there going to be sufficient competition between those groups? — My view is that some of the recommendations of our proposals encourage the production of films by additional units or companies, probably many of them small, and I and my confreres 'believe if we have this quota, if this continues and increases it will encourage other producers to commence business, because they will have the security of being able to sell their production at home, and I think competition will seriously increase in the production field and that there is no chance whatever of the British producing interest having the strangle-hold on the screen. 165. I would like to come to paragraph 13. You say exhibitors suffer from the poor quality British films. How is it the exhibitor is forced to show these films? Is it the effect of the continuance of block booking? — Yes, to a large degree, my Lord, many of the American companies, or the American business generally, are in such a position that they are able to force the exhibitor — and always have been with the reservation that the Act restricts them somewhat — but they have always been able to force the exhibitor to take not only poor American films, but the cheaper British films that they have had to acquire for quota. 166. It was anticipated measures against blind booking would check block booking, but in fact that object has not been achieved? — In so far as that is concerned the Act has not been entirely successful, because there did spring up in the trade a form of — shall we call it — the " gentleman's agreement " — we coined the word. There were understandings between exhibitors and the American companies that they would reserve dates for the American product. The British companies at that time were very much concerned, and it would be assumed they did not do that and held back for a considerable period of time. Perhaps we are taught to observe an Act of Parliament in spirit As well as in word, but eventually I must confess the British renters had to follow suit because the showing dates were passing to the American distributors. 167. If you stopped blind booking by methods which you are coming to, you still will not necessarily be able to stop block booking which apparently compels the exhibitor to take bad films. Do you see any remedy for that? — No, I do not see any absolute remedy. 36542 168. You could shorten the range by stopping blind booking, but you will not really affect the system? — Except this, my Lord, 1 believe the number of British films on our screens will always be regulated approximately by the quota, that is to say, if the quota was 5 per cent, the strength of the foreign competition is such that approximately there would be 5 per cent, screened, and if the quota were 50 per cent, there would be 50 per cent. British films on the screen, because exhibitors would be forced to reserve dates in order to play British films. That is the corrective of block booking, the quota, because the exhibitor will not block book if he knows he has to comply with an Act of Parliament and show 20, 30 or 40 per cent. of British pictures. He has to reserve dates for those films, and he does so. 169. The remedy is to ensure there is an adequate supply of good British films, if you can get that? — Well, I think the proposals we make for the quota on distributors together with the increased production provided for will look after that. 170. You do not see any prospect of doing without the quota on renters also? You would not leave it at a quota on the exhibitors? Is there not sufficient production to let the exhibitor look after the whole issue? — Do you mean to relieve the renter of the quota ? No. 171. You do not think you could do without the renters' quota? — Oh, no. The renters' quota surely is necessary in order to provide films, to fill the exhibitors' quota. 172. I do not think necessarily. There might be such a volume of production in this country that the exhibitor could find all the British films he wanted without the obligation on the renter to supply films beyond those that he wanted to supply? — My view, my Lord, would be that abandonment of the quota on the renter would immediately tend to stop, and very quickly stop, the production of many British films. 173. At present you certainly could not do without it by the figures, but if British production was expanding and there was an ample supply of really good films, and the exhibitor would be free, therefore, from the effect of block booking, presumably in his own interest he would leave out badly produced British films? — I am afraid I cannot see the day when we should be able to leave out the quota on the renter. (Mr. Korda) : Surely the quota would not be necessary if there were enough good British pictures made by two, three, four or five different firms? It is not necessary that every single renter should distribute a certain quota of British pictures, so it is possible to think of a day when only good British pictures are produced and an exhibitor can find all his quota from British renters ; but for the moment I do not think that could work yet. (Mr. Kearney) : It is also the method by which the trade is carried on. The exhibitor inevitably must get his pictures from a distributor. There are classifications of distributor as mentioned earlier. We were speaking of the foreign distributor (although he may be technically British, and is a registered British company), but as a foreign distributor, his main purpose is to rent his foreign films and he would rent no English films at all unless he were obliged to do so for quota purposes. It is only because there is ;i renters' quota that the foreign renter— I use the word in its generic sense — distributes any British films at all. To-day he has to distribute 20 per cent. of British out of 100 per cent, of his total distribution, but he would not distribute any British at all unless he had to do so by law. 174. (Dr. Mallon): Would it matter very much if there were English distributors who specialised in the distribution of British films?— Possibly not. only that he would book most of the dates for Ids foreign films and leave few dates for British pictures to bo shown. (Mr. Baker): One must keep in mind, the F 2