The Exhibitor (1955)

18 MOTION PICTURE EXHIBITOR of having possession of all monies, and giving back only what they choose to give. Some such adjustments are made contin¬ gent on the theatre’s purchase of other films that it may or may not want. And still others are held up for periods of months and years after their fairness has been arbitrated and admitted, before final credit is issued. In all cases, the theatreman dealing on a promise-of-review basis is more or less subject to the whim of the distributor, and most times he assumes the role of an outright panhandler, “with his hat in his hand.” There is some question in our mind whether the purchase on a noreview basis isn’t superior to the one on a promise-of-review basis. At least, in the former, you have a firm commitment cov¬ ered by a contract, and put your business in jeopardy knowingly, and with your eyes open. In the latter, you very often lose not only dollars, but your self respect as well! Percentage demands may also include a minimum playing time unit requirement, a participation in the cost of extra adver¬ tising, and, in the case of so-called pre¬ release or “roadshow” dates, a “sugges¬ tion” of increased admission scales. Nor¬ mal percentages will range between 25% and 50%; but in certain territories where competition cannot be encouraged between large circuits and/or large buying groups, percentages are known to go as low as 15 for the top feature on a double fea¬ ture bill, with “flat” prices and “off the top” payment for the second feature. Guarantees of lO'i of the gross as a theatre profit are a relatively recent de¬ velopment although even this is being shaved on a current pictme by requiring that the theatre bear a proportionate share of the advertising out of its 10%. Another variation, still further cutting the theatre profit, is to allow the theatre 10% of the net, after overhead has been de¬ ducted. And even this minor 10%. of the gross or net, can be wiped out completely and a loss result, through a new “gim¬ mick” that specifies: “in no case can the film rental be less than 40% (or 50% ) o' the gross.” In other words, under this clause, the theatre can have its 10% profit only if there is enough left to pay it, after a high percentage film rental has been paid. Quite a guarantee! Such are the highly controversial and ill will producing sales policies in this business today. Some part of the “billion dollars worth of law suits” that jam the courts can be attributed to them. And most all of the 5,000 to 6,000 theatres, that shuttered and were mostly converted to other types of businesses, can be attribu¬ ted to them. We appeal to the fairminded men of exhibition, distribution and production, to .attempt to find some basically fair film pricing formula that will allow this busi¬ ness to again forge ahead in proportion to the nation’s population growth. There is no national sales policy today; and in those territories where tough, highpercentage, confiscatory policies can be, and are being, enforced across the board, many honest and respected theatremen in secondary runs are rebelling at paying the same percentage terms as the larger. higher admissioned, higher grossing runs ahead of them. They reason, and with justification, that paying the same per¬ centage of their gross they want the same availability. Law suits result, and are won! But with each win, the entire clear¬ ance structure of this business, that made a lot of pictures available to the patron’s choice on any one night, and that was one of our real advantages over the “single shot” nature of TV, is becoming chaotic. And no one will willingly back up and take a later date, unless the “staler bread” has a price advantge. Only a con¬ stantly decreasing film price, from the big city first runs to the last of the subse¬ quent runs some months later, will pre¬ vent the costly law suits that will force day-and-date runs, if not given volun¬ tarily. Whether exhibitor, distributor or pro¬ ducer, let us put our house in order! Don’t forget, other than for the pre¬ ponderantly seasonal drive-ins, new con¬ struction and major remodeling has been virtually at a standstill since 1946. A huge amount of money was spent for the socalled new techniques, and, except for the large high-admissioned first runs that could recoup it out of one or two pictures, the vast majority of smaller theatres still owe it to themselves, or to their banks. In the meantime, day by day, obsolescence is taking its toll. The future of this business is in the hands of the men who will think — and do! And, as Dore Schary of MGM so aptly put it in a recent speech: “May we al¬ ways share honor together!” 3 5 mm. (Continued from page 9) Skouras Describes Attachment For One-Track Magnetic Sound Chicago — An important development an¬ nounced to the National Allied annual convention here last week was a new single attachment for one-track magnetic sound which will permit theatremen to play all CinemaScope product in its full ratio of 2.55-1, according to 20th-Fox president Spyros P. Skouras, who said that his company is making the device available to exhibition as a gesture of good will for the interests of the rankand-file theatres across the country which can play films only in 35mm. It was expected that the attachment will prove a boon to theatres unable to handle full stereophonic sound at present. Skouras explained that by using the at¬ tachment with an inexpensive change o'" sprocket and rollers, one-track magnetic sound can be obtained with the same optical sound equipment now used in many theatres. Theatres already having magnetic sound equipment will require no new installations, he said. The cost of the new equipment was estimated at about $900 by the executive, who announced that credit would be extended exhibitors over a three-year period to simplify the purchase. A demonstration of the new 20th-Fox 55mm. process was offered at the Oriental following the Skouras convention address. Screened were sequences from “Carousel,” the forthcoming 20th-Fox feature filmed in 55mm. and reduced, described as the “ultimate” in CinemaScope screen pres¬ entation. Skouras further announced that Attendance Still On Upswing; increased Receipts Expected WASHINGTON — Movie attenaance continues on the upswing and gross theatre receipts are anticipated to in¬ crease slightly over the $1.22 billion of last year, according to a Depart¬ ment of Commerce report recently. The foreign market for American product is holding up well and should return revenue of approximately $200 million. Commerce said, while the 400-odd new drive-ins will bring the year-end total of that type of situation to about 4500. 20th-Fox, in order to make the advan¬ tages of 55mm. photography available to the largest number of theatres, has aban¬ doned its plan to roadshow “Carousel” in 55mm. in favor of releasing the picture in a 35mm. version reduced from the 55mm. negative. This action, however, does not mean that 20th-Fox will not use 55mm. roadshowings of future films, th president made clear. Skouras reaffirmed his belief in a failsystem of arbitration and, in a dramatic gesture, instructed executive assistant general sales manager William C. Gehring, in the presence of delegates, to make sure that 20th-Fox product is positively made available to exhibitors at a flat rental in situations where the gross is $1,000 or less. He also urged Allied to make every effort to bring all exhibitors together in one huge organization in which they can seek relief for their complaints as a united front. Global Producers Bar Iron Curtain Groups Washington — Film organizations in coun¬ tries lying behind the iron Curtain were barred last week from membersUip in the international Federation ol Film Froducers Associations by action taken on a policy vote, no application having been introduced. Dr. Renato Gaulino, Associa¬ tion president, said that it was anticipated one might be submitted and that it was thougnt expedient to have a set policy. The bar now stands against countries which have state-controlled or dominated industries. Gaulino explained that independent pro¬ ducers and those working tor the state do not have enough in common and are likely to be far apart on many issues, with the result that it was decided to be in the best interest of the membership to admit only private producing countries. The conference here approved 1956 film festivals in Cannes, March; Venice, Augusc; Cobh, May, lor one year only; Karlovy-Vary, in Czechoslovakia, July; Berlin, June and July; and Edinburgh, August to September. The Czech festival was tentative, pending assurance that the event would have no political significance and that free exchange of films, fi'ee entry, plus entry over quota, will be allowed, as well as that films shown will have passed censorship and have been commercially shown, and that proceeds will be remitted to the producer. November 16, 1955