The Exhibitor (1962)

Price Squeeze... Movie Style 1V4 bil 1 Va bil 1 billion 975 mil. 950 mil 925 mil. 900 mil. 875 mil 850 mil. 825 mil. 800 mil. 775 mil. 750 mil. 725 mil. 700 mil. 1953 1954 1955 1956 1957 1958 1959 1960 1961 Tea Leaves Or Figures? INTERESTING FACTS EVERY THEATREMAN SHOULD KNOW I THOR business, the raw materials for makp ing prophesies are all too often legible but none-the-less cryptic due to the complexity of making any kind of sense out of business statistics. Indeed, these potenti¬ ally prophetic numbers are the cause of as much misinformation as sound guidance. The unfortunate result is that statistics are im¬ mediately dismissed by some who could otherwise profit from them. An objective look at the industry based on sound statistics, to us, seems a prerequisite to laying out considerable cash for improve¬ ments to the physical theatre and new con¬ struction. While we can’t read the tea leaves for you, we can say that other indicators at our disposal point to a long and healthy life for exhibition. But between the blanket statement and the reality of its being fulfilled lies a difficult road to be travelled, one littered with new obstacles such as pay tv, and older barricades that have yet to be surmounted. But it remains that the motion picture in July 18, 1962 dustry has at its disposal rich raw materials and a growing market for its product. We can all speak freely of the past. Most of us know that average weekly attendance built to a peak of 90 million (1945-48) and then fell to half that number with the advent of television and other factors. We can also cite the present with the same degree of surity; business is good or it isn’t. But it is the future that man concerns himself with most. Where the so-called “trends” lead is what the exhib would like to know when he thinks of the future of exhibition in America. Income Trends The graph depicting gross boxoffice receipts and national income from the industry was made up to give you some idea of a long range trend. Notice that gross receipts are again moving to highs (almost $1.5 billion in 1961) that were reached in the mid-forties. This is significant for two reasons: (1) there are fewer theatres with a larger potential audience and (2) even though gross boxoffice receipts are climbing, income of the industry, which takes into account compensation of employees, proprietor’s income, rental in¬ come, corporate profits, and interests, has temporarily leveled off on a plateau below the 1955 level. Behind this seeming paradox of higher grosses and less income lies a fast unraveling situation that can be summed up as a major industry adjusting to the idea that it has weathered the severest test in its short, spec¬ tacular history. Consider admission prices, for instance. Admission Prices The Department of Labor consumer price index for motion picture theatres currently stands at approximately 160.0. A base figure of 100, established during the years 1947-49 to chart the price increases of goods and services, shows that the admission index has climbed 60 points in 13 years. In dollars and cents, higher admission prices have held grosses up fairly well, so that the sharp drop in the number of admissions per week from ( Continued on page PE-14 ) PHYSICAL THEATRE Vol. 17, No. 7 July 18, 1962 PHYSICAL THEATRE • EXTRA PROFITS DEPARTMENT of MOTION PICTURE EXHIBITOR PE-5