Motion Picture Daily (Oct-Dec 1944)

10 MOTION PICTURE DAILY Tuesday, October 17, 1944 Box Offices Will Decide Video Future 'Industry in Strongest Position in Postwar9 WPB Urges Making Projector Parts (Continued from page 1) television pass them by and freeze them out. They, and they alone have the one thing which has bothered many of those who have studied the economics of television. They have the answer to the question 'Who is going to pay for television?' They have the box office!" Austrian cited many ways in which exhibitors can make television economically feasible. They involve the exclusive presentation of features like prize fights, horse races, baseball and football games, concerts and other spot events. They could recoup the cost of securing such events exclusively by added patronage and increased admission prices while playing regular film programs, Austrian said. Theatre television as envisaged by Austrian would be a supplement, in most cases, of a regular film program. He said that in many cases, audiences in theatres would be given a better presentation of an event by television than they would receive if they attended the event personally and were forced to view it from a disadvantageous spot. A. T. & T. Facilities Harold S. Osborne, chief engineer of American Telephone and Telegraph Co., another speaker at the session, cited the facilities which are now available and contemplated to make inter-city and intra-city theatre television links possible. Osborne described the functions of the present three, and four million cycle band cable links which are now available and the seven million cycle coaxial cable constructions which are contemplated in providing these links. "Television transmission stands today," Osborne said, "where sound transmission stood 20 years ago." He pointed out that intra-city television links can now be provided by specially adapted telephone links. By wave guides, an adaptation of the coaxial cable, it is also possible to transmit television images in the very high frequencies, Osborne pointed out. A further method will be provided in the radio-relay link which the Bell System plans to construct between New York and Boston. Osborne said that A.T. and T. has already started the manufacture of coaxial cable with which it hopes to link key cities from coast-to-coast by 1950. Epstein Paper A paper on "Television Projection" was read at the afternoon session by Dr. David W. Epstein of RCA, representing experimentation with projecting the image on the cathode ray tube both in theatres and in the home. Dr. I. G. Maloff of RCA and Dr. Epstein have been experimenting with a mirror reflector and a corrective lens to improve the quality of the image and report progress has been made in overcoming some of the obstacles presented by the loss of image quality in projection. Dr. Epstein cited the use of plastic lucite for lenses to overcome the problem of manufacturing suitable corrective lenses for projecting images. D. E. Hyndman, SMPE engineer (Continued from page 1) that "the industry will have the opportunity of playing a post-war role of the greatest significance in helping to unite the peoples of all lands through a common bond of ideals and sympathies," according to the statement from his office. Cowdin asserted, "The industry's 16mm gift films to our Armed Forces have had an estimated attendance of 300,000,000 persons in uniform. Thouhands of fighting men when they return to civilian life will bring back with them the 'movie-going' habit to a greater degree than ever before. This will be a factor in post-war attendance." Discussing the belief in some quarters that there will be a falling off of national income at the war's end and that as a result theatre attendance will be adversely affected, Cowdin stated : "Even if such a decline in national income should be fairly sharp, it is not likely motion picture revenues will be affected to any comparable degree for a substantial period in view of the huge accumulation of savings in the hands of the public. The 'movies', past experience indicates, are among the last things that people will give up. Following the last war, when the industry was in its infancy, there was but a slight falling off followed by a substantial increase, which lasted for a long period. 90,000,000 a Week "The war has served to emphasize the basic nature of the motion picture industry. Going to the 'movies' is an integral part of life in America and many other countries. Theatre attendance in this country alone averages 90,000,000 a week. Entertainment, in fact, is a fundamental need of all humanity and the motion picture is easily the most universally popular of all forms of mass entertainment. It has the further advantage of being inexpensive and a cash business. Thousands of small communities rely almost entirely upon the 'movie' and radio for their entertainment. The 'movies' are, in effect, a necessity, and this imparts a strong element of fundamental stability to the industry. The 'movie' box-office, of course, to some degree reflects the ebb and flow of general economic con ditions, but to a less marked extent than most other industries. This in dustry is among the last to feel a de pression, and among the first to re spond to a revival. History shows that good pictures will always find a substantial market. "The motion picture industry is fortunate in that it faces no re-conversion problem, although studios and theatres will require new equipment to replace that worn out during the war," Cowdin stated. / "From an operating standpoint, the industry will benefit at the war's end by the return of highly specialized personnel who, because of the training and experience required, could not be replaced effectively during the war and this should result in the lowering of basic unit costs, as well as again making available many stars who are today in our government's service. "When building materials are again available, it is expected that a large number of new theatres will be constructed to meet the growth and changes in population and to replace theatres that have become obsolescent. These new theatres will contain many improvements. "In view of the importance of the 'movies' in providing wholesome, inexpensive relaxation to the mass of the American people, the increase in admission taxes to 20 per cent, while perhaps acceptable as a war measure, will prove highly unpopular when peace returns and a movement to eliminate or reduce it will have strong support. New Markets "It is our belief that the overall foreign business available to the major picture companies will be extremely large in the post-war despite the problems of foreign exchange, restrictive measures by foreign governments and competition from foreign film industries. The liberation of Europe, and later Asia, will not only permit the re-opening of previous markets but there is every indication that new markets will be created. "Universal Pictures looks with confidence to the post-war era as an opportunity for further progress. It entered 1944-45 with more and, we believe, better pictures. "Anticipating that 'war pictures' would lose their popularity, Universal has eliminated such features from its 1944-45 schedule. "While Universal has been unduly penalized from an earning standpoint during the war period through its low tax credit base, nevertheless, as long as such high tax levels prevail it would require a serious reduction in gross profits in order to affect net profits materially. In the post-war period, should there be, as anticipated, a substantial reduction in the Federal corporate tax rate, attendance figures can decline rather substantially and still leave Universal with net earnings as large or larger than those currently enjoyed," Cowdin concluded. (Continued from page 1) of WPB told Motion Picture Daily here yesterday. Smith urged manufacturers to contact their local WPB for permission, promising the cooperatio'n of the WPB theatre equipment section which will be consulted. Smith said that about 200 extra rectifiers used in projection booths to convert AC current to usable DC current will be available during the current quarter and in the first quarter of 1945 as a result of such action by the Baldor Electric Co., St. Louis securing permission for their manufacture from the WPB. These will be in addition to 730 authorized previously. Smith said that the regional boards now have authority to act on all applications to manufacture much-needed projection machine parts. He indicated that there is still a particularly critical situation as far as ball bearings are concerned. Smith is attending the sessions of the Society of Motion Picture Engineers' 56th semi-annual technical conference as a WPB observer. ing vice-president, cited some of the current work of SMPE's engineeringcommittees in a report on the organization. Raymond Spottiswoode of the Canadian National Film Board told of some of the recent developments at the National Film Board of Canada. Other papers on sound recording, lighting and developing of film were read. The sessions will continue today and tomorrow. A dinner-dance will be held at the Hotel Pennsylvania tonight. RCA Head Sees Vast Television Growth Television, radar and other wartime developments in radio-electronics have brought the American radio industry to the threshold of another great era of expansion, greater even than the achievements of the last quarter of a century, Lieut. Gen. James G. Harbord, chairman of the board of RCA, declares in a statement commemorating the observance of RCA's 25th anniversary. Amend Repair Rules On Vending Machines Washington, Oct. 16. — The War Production Board today announced that manufacture of parts for the repair or renovation of vending will be permitted to the extent that the use of materials for the purpose is allowed by materials conservation orders. Limitation order No. L-21, covering automatic vending machines, phonographs and other amusement and gaming machines used in theatres and other public places was amended after two and one-half years during which the use of metals for that purpose was prohibited. FCC to Hear Views On Film Television Washington, Oct. 16. — The Federal Communications Commission tomorrow will hear the views of film and various others interested in postwar television, but it appears that it may not reach Paul Raibourn, who is scheduled to discuss the subject for Balaban and Katz. He is the 13th of 20 speakers listed for tomorrow. Because it had previously scheduled another group to be heard Wednesday, and is desirous of keeping that engagement, the FCC plans to go as far as it can with the television witnesses and then postpone hearing the rest until later. A considerable part of tomorrow's hearing will be devoted to the discussion of CBS and NBC television views. PRC Southeast Meet Atlanta, Oct. 16. — Representatives of the Atlanta and Charlotte branches of PRC met recently to hear Ike Katz, head of the company's Southeast division, report on his recent visit to Hollywood. New product and sales methods were discussed. Others who attended were Harry Katz, W. H. Rudisill, A. B. Block, D. O. Graham and A. D. Lewis, all from the Atlanta office, and E. R. Heller and R. M. Boovy, from Charlotte.