Motion Picture Daily (Oct-Dec 1955)

Tuesday, December 27, 1955 Motion Picture Daily 5 JJJ£0 Radio New President Discloses (Continued from page 1) which controls the films involved through its summer purchase of RKO Radio from Howard Hughes. O'Neil, in making the announcement of the sale, stated that the "theatrical rights to these films for the United States and Canada are not involved," indicating that RKO Radio, which is the first major productiondistribution company to sell a majority of its film library for use by television stations may still have some plans to re-issue the films to theatrical situations. Theatrical Films Uppermost In late July, following the GT purchase of RKO Radio from Hughes for $25,000,000 cash, O'Neil, at a press conference, made it clear that the production of theatrical films will take precedence over his television plans. The first aim is to re-establish RKO Radio as a major producer-distributor, he said then, and continued by stating that the disposal of the RKO film library to television, if and when decided upon, would be on a conservative basis with due regard for re-issue value of theatrical films. It is believed that the bulk of the cash received from the Fox deal will be used to finance new RKO theatrical production. Immediately afterwards, GT executives began the classification of the RKO Radio film vault and sent out "feelers" to representative television outlets seeking information as to the advisibiLty of showing films on television and the reception which might be accorded them. Start in January C. R. ( Rob ) Manby, GT vice-president in charge of liaison with RKO Radio in late November told Motion Picture Daily that the six ownedand-operated GT TV stations would begin die presentation of the first of the RKO Radio Pictures "some time in January." He said then that GT officials expect a minimum TV gross of $40,000,000 from the 752 features and 924 short subjects which have been inventoried from the RKO Radio vaults. Two weeks ago in Hollywood, William Dozier, newly-elected RKO Radio vice-president in charge of production, declared that the deal with Fox is expected to yield the company $12,000,000 which will be invested in production. Under the terms of the sale, Dozier said that RKO reserves the full rights to remake any and all pictures conveyed in the transaction. Halpern to U.A. ( Continued from page 1 ) will fly to Paris on Jan. 2 to take over his new post. He replaces Charles Moses, who has resigned. Halpern started in the industry in 1946 as associate editor of "The Independent Film Journal," and was associated with Paramount Pictures from 1949 to 1952 as press-book writer and publicity feature writer. Loew's to Embark on Three-Point Program at Home, Abroad, in TV Loew's, Inc., will embark on a three-point program in the coming year, according to Arthur M. Loew, newly elected president, who, in an interview last week with T. A. Wise of "The the company will expand its foreign theatre operations, cons i d e r further activity in television programming, and release more independently produced motion pictures. D e c 1 a r ing the he is Arthur M. Loew nQt yet ready tQ give the details of the new policies, Loew was quoted as saying diat the company had been too slow in deciding to handle distribution of independent product as the distribution of such pictures has been a big factor in the improved profits shown by other major producers. He said that he expects the annual report for the fiscal year ended on Aug. 31, 1955 to show a decline in earnings from the $6,577,311, equal to $1.28 per share, reported for the previous 1954 period. Some Films Disappointing He attributed this to disappointing performance by high budget pictures, such as "The Prodigal," which cost $3,000,000 and has grossed only 82,200,000 thus far domestically, and "Jupiter's Darling," which cost $3,000,000 and has recouped only $1,500,000 in U.S. rentals so far. The Loew's president said that in the coming year, die M-G-M studios will produce about 25 films and will finance and distribute five other pictures to be made by outside producers. Loew said that he is optimistic about die outlook for the company's business. He told the "Wall Street Journal" that the current drop in theatre box office receipts reflects mainly the decline in the public's curiosity about new wide-screen projection systems. Production Salaries May Be Cut To lure the talent needed to produce the better films, Loew was quoted as saying that it might be necessary to cut production salaries, but increase other forms of compensation, such as profit-sharing participation for stars, writers or producers. He said that the company will move toward getting a larger share of the foreign market, that Loew's now derives 40 per cent of its total income from abroad. He said that he firmly beheves that earnings of U.S. product abroad can possibly be doubled. He said that the production company will hang on to the foreign theatre circuit, which now numbers about 45 houses, and will attempt to expand it, with particular emphasis on Ger "Wall Street Journal," disclosed that U.S. Reports Grosses Up From THE DAILY Bureau WASHINGTON, Dec. 26. The Commerce Department estimated that gross receipts from motion picture theatre attendance in this country would amount to about $1,300,000,000 this year, and predicted receipts would remain at about the same level in 1956. The Department estimates that 1954 receipts amounted to $1,220,000,000. Box-office receipts will stay at current levels, the Department said, because of the increasing number of theatres, particularly drive-ins, and increased production of feature films. Sees No Loss Abroad The Department also predicted that "barring any legislative blocks, not now anticipated," the foreign market for U. S. films would also continue good. It estimated that total receipts from abroad for 1955 were about $200,000,000, the same as for 1954. The figures and predictions on die film industry outlook were contained in a year-end survey conducted by the 25 industry divisions of the Department's Business and Defense Services Administration. Nathan D. Golden heads die Motion Picture Division. Study Extension ( Continued from page 1 ) CinemaScope pictures come in over a longer period and also these rentals have been larger in the latter weeks of release than was the case prior to CinemaScope, he stated. Continued Skouras: "Since it has been the practice of die corporation for many years to write off the cost of pictures in full in 65 weeks from the domestic release date, the slower playoff of CinemaScope pictures, both in die U.S. and Canada and abroad, has had die effect of reducing profits, and this condition is reflected in results for the first 39 weeks in 1955." many, Australia and Argentina. Discussing television, Loew said diat in the first year Loew's will have a net profit of $1,000,000 from its television show, "The M-G-M Parade." He said he has no plans for broad changes in operations and is accepting full responsibility for any mistakes management may make from this point on, whether in production or distribution. PEOPLE Alfred Starr and Trueman Rembusch, co-chairmen of the Committee Against Pay-To-See TV, and Philip Hading, committee treasurer, have been commissioned Kentucky colonels for their activities against subscription television. David A. Stretch has been named executive vice-president of Atlas Corp. and Edward R. Farley, Jr., has been named a vice-president, it was announced by president Floyd B. Odium, president of Atlas, which has proposed a merger plan with the inactive RKO Pictures Corp. Paul F. Hand has been appointed assistant to the president of General Aniline & Film Corp. and Robert M. Dunn was named acting general sales manager of die Ansco photographic division. George Morris, formerly on the writing staff of Monogram and author of several plays, pictures and television stories, was appointed editor of the American News Reel by its managing director, E. Glucksman. Christmas Crowds (Continued from page 1) opening and with some of the sturdy hold-overs present, the box-office at most first-run-situations struck a lively pace. Among the newcomers which opened here on the eve of the weekend were "The Court-Martial of Billy Mitchell" at the Criterion, and "Man widi the Gun" at Loew's State. Among those being held over are three musicals, "Kismet" at Radio City Music Hall, "Oklahoma!" at the Rivoli, and "Guys and Dolls" at the Capitol. Meanwhile, Monox Picture Datly field correspondents, reporting on the regional picture, said that in Cincinnati, Bob Morrell, general manager of S. & S. Amusement Co., feels that with Christmas past, the box-office status should improve. Morrell felt that the pre-Christmas lull was worse this year than last, pointing out that this year there are no pictures comparable to "White Christmas," released last year at this time. From Portland, Ore., came news on the eve of the Christmas holidaythat despite an early series of snowfalls, downtown theatre managers expect the better line-up of product to register well at box-offices there. Comdr. John Williams CLEVELAND, Dec. 26,-Funeral services were held here last week for Commander John Williams, son-inlaw of Frank Masek, National Theatre Supply manager here. Comdr. Williams, who was killed in a Memphis automobile accident, is survived by his wife, Jewel, and three children.