Motion Picture Daily (Jan-Mar 1955)

Monday, January 17, 1955 Motion Picture Daily 7 Kilgore Sees TV Survey Progressing From THE DAILY Bureau WASHINGTON, Jan. 16. — Sen, Kilgore (D., VV. Va.) said he felt a television study being conducted by one of his aides was progressing very satisfactorily. Kilgore, who'll head the Senate Judiciary Committee, said he had several talks last week with Howard L. Chernoff, who is studying subscription television and other TV subjects for Kilgore. On the basis of Chernoff's study, Kilgore will decide whether to hold a full-fledged Senate investigation of "monopoly practices in radio and television." Chernoff' s work, Kilgore said, promises to provide "an excellent background to decide the extent and course of our inquiry." Say Schine Refused To Sell 9 Houses Special to THE DAILY BUFFALO, Jan. 16.— Letters indicating that Schine Chain Theatres Inc., officials refused a $1,500,000 offer for nine theatres in Rochester were introduced by the government in the Schine Federal court trial. An appraisal expert testified that he had valued the property at $1,030,000. Defendants including the Schine interests are being tried before Judge John Knight, charged with contempt of court for not complying with judge's 1949 anti-trust decree. Presented by Federal Attorney Evidence concerning Rochester theatres was presented by Joseph E. McDowell, Justice Department trial attorney, in support of the government's claim that the Schine circuit obstructed prospective competitors' efforts to acquire interest in theatres which the decree compelled defendants to sell. In Rochester, the decree ordered the disposal of two Schine theatres, either the Madison or Monroe and either the Riviera or the Liberty. McDowell presented about 20 letters and copies of letters involving the Rochester Theatre negotiations, dated from Oct. 18, 1949 to June 21, 1950. Filmack Signs With Three More Unions CHICAGO, Jan. 16. — Contracts with three additional film industry unions have been signed by the Filmack Trailer Co., it was reported by Irving Mack, president. The unions are : Screen Actors Guild, which includes all talent used for television commercial films, such as actors and announcers ; Motion Picture Cartoonists, artists who draw cartoons and do hand lettering on animated films, and Motion Picture Laboratory Technicians, the union which includes everyone in the Filmack laboratories who develop, print, edit, and inspect 16mm. and 35mm. films. The Laboratory Technicians received a 10 per cent increase, retroactive to Sept. 1, 1954. The signing of these contracts made a total of eight unions now represented at Filmack. Theatre-and-Stuelio Canfiict (Continued from page 1) the needs of exhibitors as well as the success of his own company. Those interviewed included : Adolph Zukor, chairman of the board of directors of Paramount Pictures ; Spyros P. Skouras, president of 20th Century-Fox ; Barney Balaban, Paramount president ; Charles Feldman, vice-president in charge of distribution of Universal Pictures ; Americo Aboaf, vice-president of Universal International ; Robert L. Lippert, president of Lippert Pictures ; E. D. Martin, president of Theatre Owners of America ; Samuel Rosen, executive vice-president of Stanley Warner ; Eugene Picker, vice-president of Loew's Theatres, and others. Twentieth Fox president Skouras, when asked about the product situation, introduced a new concept. Acknowledging that additional pictures are needed in the industry, he called for bigger pictures but more of them, and with the accent still on quality. Zukor emphatically rejected the view that "mere numbers" answers the product situation, contending that the public has dictated the policy of quality pictures with strong story ingredients, a top cast and the proper director. Such pictures, he maintained, make money for both the producerdistributor and exhibitor. Feldman Cites Production Costs The narrowing down of the market for low-budgeted pictures was stressed by Universal's distribution vice-president Feldman. He expressed his conviction that the low-budgeted picture is caught in a vise, with pressure being applied by higher production costs and the competitive advantage accruing to quality pictures in the exhibition market. For these reasons, he continued, Universal has increased its production budgets, aiming at quality in order to meet the requirements of a highly competitive market. Feldman's views on the domestic situation were held as being true for the foreign field, also. Speaking as vice-president of Universal International, Aboaf said the foreign audience is just as selective as the American audience and wants quality product. General Optimism Expressed Despite the industry problems reflected in the various points of view,, most of the executives, from exhibition as well as from production-distribution, were optimistic about the business outlook. And, unlike a year ago, the accent was not on new media, whether CinemaScope or VistaVision, but on how many pictures can profit Gain of 6,000,000 TV Sets Last Year As of Dec. 1, 1954, there were 32,996,000 TV sets in the U.S. according to an estimate released by Hugh M. Beville, Jr., NBC director of research and planning. This is an increase of over 6,000,000 sets since NBC's Dec. 1, 1953, estimate of 26,973,000. Preliminary estimates indicate that as of Jan. 1, TV sets in the U.S. total approximately 33,500,000, of which 90 per cent will be in areas capable— of receiving network color programs. ably be released and marketed by major studios as opposed to the claimed requirements of exhibition. Robert L. Lippert, president of Lippert Pictures, and a theatre owner, addressing exhibitors in Chicago, declared: "Unless you are willing to pay higher rentals for program pictures to make them profitable for their producers, they will continue to disappear." UA. board chairman Benjamin, strongly rejecting the contention that there is no market today for lowbudgeted pictures, declared "the fact is, we are making money on practically every low-budgeted picture we release." He argued that major studios, with big overheads, no longer can bring in a low-budgeted picture, estimating the cost of such pictures to them of from $700,000 to $800,000. He contrasted these costs with the costs of the independent producer which, he said, can run from $300,000 to $350,000 and still return a profit in today's market. Benjamin's outlook is reflected in exhibition ranks by such moves as the Makelim plan and the formation of Theatre Owners of America's sponsored Exhibitors Film Financial Group, and others. Rural-House Predicament Stressed Speaking for exhibition, TOA's president Martin wrarned against what he called "Metropolitan orientated production" to the detriment of medium-sized and smaller areas throughout the country. S-W's executive vicepresident, in the same vein, declared that it is "fallacious" to think that the industry can function without outlets in medium-sized and smaller cities and towns. The big pictures, he maintained, do not lend themselves to the same comparative extended running time they enjoy in big cities, creating a product pinch of proportions. Both Martin and Rosen, citing the needs of their respective circuits, said they required lowbudgeted, as well as big, quality productions, adding that some low-budgeted pictures do better at the box-office than quality productions. Loew's Theatres vice president Picker acknowledged that for his circuit there still is some maneuverability for product, but warned that any drop would be below the danger point — a point already reached by third-run situations and those with tri-weekly changes of bill. Echoing other exhibitors, he cited the need of product in double bill neighborhood situations, adding that the public still appears to want two features on the program. Martin, Levy Discuss Earnings Assertions that although there have been fewer releases the past year, theatre earnings of circuits have climbed in comparison with former years, were challenged by TOA's Martin and general counsel Herman Levy. Citing higher film rentals, they questioned whether earnings increases were due to theatre operations alone. Picker, speaking for Loew's, pointed to the admission tax savings, rather than quality product alone, as a factor in any increased exhibition profits. THE FIFTH ANNUAL COMMUNION BREAKFAST for Catholic people of the motion picture industry in the New York area will be held Sunday, February 6. Mass at nine o'clock at St. Patrick's Cathedral, with breakfast immediately following in the Grand Ballroom of the Hotel Waldorf-Astoria. For information and tickets, communicate with the member of the Sponsoring Committee in your office, or Miss Marguerite Bourdette, Room 1107, 1501 Broadway. Tel.: BRyant 9-8700. (Tickets $3.75 each)