The Exhibitor (1954)

Zenith Head Blasts Toll-TV Approval Lag MOTION PICTURE EXHIBITOR 9 MGM Theatre Celebration Starts With Wisconsin Dual Opening Chicago — Commander E. F. McDonald, Jr., president, Zenith Radio Corporation, last week charged that several groups of theatre owners are attempting to delay the coming of subscription TV because they know it will be a competitor capable of delivering new motion pictures and other boxoffice entertainment to the public more efficiently and much more economically than is now possible. McDonald had reference to the oppo¬ sition filed with the Federal Communica¬ tions Commission by six organized ex¬ hibitor groups, opposing Zenith’s request for immediate authorization of subscrip¬ tion TV, and requesting full blown hear¬ ings on the subject. McDonald’s remarks were addressed to a national convention of Zenith wholesale distributors at the Shoreland Hotel. He revealed that a number of theatre owners have already applied to Zenith for fran¬ chises to operate phonevision in their localities, when and if it is approved by the Federal Communications Commission. “The far-sighted action of these indi¬ vidual theatre owners is in striking con¬ trast to the obstructive efforts of the organized groups,” he said. “They have recognized phonevision’s tremendous po¬ tential value and are anxious to secure franchises for their localities. Even though we cannot grant them at this time, we welcome these applications, because we realize that successful operation of phonevision will require the talents of men who are experienced in showman¬ ship and who know the entertainment preferences of their localities. “This does not mean,” he said, “that subscription TV will kill the movie the¬ atre any more than movies killed the legitimate stage, or than radio and TV killed the newspaper business. It will hurt some small theatres, just as every new business development hurts some¬ body, but that is all. No amount of home entertainment will satisfy the urge to get outside the home for an occasional fling. There will always be people who prefer seeing good movies and grand opera in the theatre, even though it will cost many times as much to see them in the the¬ atre as at home.” McDonald revealed for the first time that with the latest phonevision equip¬ ment there will be no need for altering television receivers, either those now owned by the public or those being manufactured. “Our decoding equipment can be at¬ tached readily to any television receiver,” he said, “regardless of make, so that it will be a simple matter for any set owner to receive phonevision service.” McDonald said it was to the everlasting credit of the television industry that there had been no attempt made to gang up on theatre television, and questioned the legality of such a move. “Some years ago,” he stated, “many socalled ‘four wall’ theatres were in bitter opposition to drive-ins. Some ganged up on their new competitor, and eventually paid over millions of dollars in anti-trust damages.” In contrast to the limited op¬ position recorded against subscription TV, he said, is the rapidly growing volume of Industry Census Forms Go To Ail Branches WASHINGTON— The Census Bureau last week mailed out its comprehen¬ sive business questionnaire to almost every producer, distributor, exhibitor, and service firm in the motion pic¬ ture industry. For the first time in 15 years, the whole industry will be surveyed in the same year. In 1948, a census of producers and service firms was taken and one of distributors and exhibitors in 1949, but not since 1940 have they all been surveyed together. For the first time, the same division of the census bureau will survey the entire industry, producing better correlation than previously, when producers were surveyed by the man¬ ufacturing branch, distributors by the wholesale branch, and exhibitors by the service branch. The questionnaire will go to every industry firm except those which have no employes. Income tax returns will provide the bureau with infor¬ mation on these forms. SW Stockholders To Consider Changes Wilmington, Del. — The annual meeting of stockholders of Stanley Warner will be held here on Jan. 13. The stockholders will act upon a proposal to amend the certificate of incorporation to conform with the section of the by-laws provid¬ ing that directors be divided into two classes and elected for a term of two years with the terms of each class expiring in alternate years. Three directors will be nominated for election to two-year terms. Si H. Fabian, Samuel Rosen, and David G. Baird. Direc¬ tors whose terms of office will continue and Harry M. Kalmine, Maurice A. Sil¬ ver, and Dr. Charles F. McKhann. The proxy statement revealed earnings of SW officials for the fiscal year ended Aug. 28 as Fabian, president, and Rosen, executive vice-president, a combined $196,774.77; Baird, chairman of the finance committee, $36,400; Kalmine, vice-presi¬ dent and general manager, $130,000; Sil¬ ver, zone manager in charge of SW the¬ atres in the Pittsburgh and Cleveland areas, $44,800. The Fabian-Rosen remuneration was paid to Fabian Enterprises under an agreement between it and SW. Frels Mourned Houston, Tex. — Ruben Frels, 55, head, Frels Theatre Circuit, died last week of a heart attack. Owner of 45 Texas theatres, Frels was a director of the Texas DriveIn Theatre Association and a past presi¬ dent of Allied States. support that is coming from broadcasters, civic groups, actresses and actors, reli¬ gious leaders, educators, and the general public. Green Bay, Wis. — MGM’s first big splash in connection with its “Motion Picture Theatre celebration” got imder way here last week and is set to continue for two weeks of activity in connection with the openings of “Bad Day At Black Rock,” Bay, and “Green Fire,” Orpheum, on Jan. 21. Theatre interests have indicated they will dress up the city with special lighting effects, bunting, and promotionwise wake up citizens to the importance of motion pictures in general and the industry at large. The campaign is expected to spread to nearby communities. Local merchants, a number of civic asso¬ ciations, local chapters of national busi¬ ness clubs and other groups will publicly pay tribute, through newspapers, radio, TV and other media, to the film industry with MGM taking the lion’s share of the leadership in promoting goodwill between the merchants and other groups with the theatre interests. This tribute will ac¬ knowledge the part theatres have played in getting customers to come to town regularly to attend their favorite place of amusement and also shop on their visits to the main streets. Ivan Fuldauer, MGM division field representative with headquarters in Chi¬ cago, and Louis Orlove, field press repre¬ sentative headquartering at Milwaukee, have arrived to start the ball rolling for the big event. The first official state act to spark off the jubilee activity is an official proclama¬ tion signed by Robert C. Zimmerman, assistant secretary of state, declaring January as “Go To The Movies Month.” The proclamation points out, in part, “with characterstic optimism, spirit and enthusiasm, theatres of Wisconsin are wel¬ coming the New Year of 1955 with a ‘For¬ ward in ’55’ celebration, and, whereas, this celebration will bring to hundreds and thousands of moviegoers in Wisconsin a concentration of outstanding film produc¬ tions during the first four months of 1955,” winding up with a request that every city and community in Wisconsin also join and observe the period for celebration.” Illinois Joins Salute To Nation’s Exhibitors New York — Following close on the heels of a similar action by the state of Wis¬ consin, a second proclamation in con¬ nection with MGM’s “1955 Motion Picture Theatre Celebration” has been issued, the latest by Governor William G. Stratton, Illinois, and countersigned by Charles F. Carpentier, Secretary of State. The second acknowledgment of MGM’s “Forward In ’55,” like the first, proclaims January as the “Go To The Movies Month,” and adds that “The Motion Picture theatres of Illinois repre¬ sent an important and unique activity.” The proclamation further states that “encouragement and support be given such aggressive plans and salute the thousands of motion picture theatre people who diligently strive to provide the best entertainment for the men, women and children of our state.” January 12, 1955