The Exhibitor (1966)

Fox Net Soars As Leads Successful NEW YORK — Darryl F. Zanuck, president of 20th Century-Fox Film Corporation, re¬ ported that net earnings after federal and foreign income taxes in the first three months of 1966 amounted to $3,048,000, equal to $1.06 per share on 2,866,199 shares outstanding. This compares with net earnings of $2,899,000, equal to $1.01 per share in the first quarter of 1965, when carry-foward tax credits elimi¬ nated federal income tax obligations. Before taxes, net earnings in the first three months of 1966 amounted to $5,570,000, as compared to $3,358,000 for 1965, a gain of 65.9 per cent. Zanuck added: “Because of the nature of our business, I am usually very hesitant about making predictions for the future. However, we are confident that the second quarter will be as good, if not better, than the first quarter which means earnings of at least $1.06 per share. Earnings before income taxes for the first half of 1966 are estimated at $11,200,000, contrasted with $6,715,000 for the first half of 1965, representing an expected increase of 66.8 per cent.” Film rentals in the first quarter from fea¬ ture pictures, including television and film series produced specifically for television, totaled $51,967,000, compared with $28,289,000 in the first quarter of 1965, a gain of 83.7 per cent. This is not only a record for the first quarter but the highest quarter in the com¬ pany’s histoiy. “Sound” Sweet Tune For Co. Zanuck reported that “The Sound of Music” continued to make the largest contribution to theatrical film income. In the first 20 weeks of 1966, to May 13, “The Sound of Music” has had a worldwide gross of over $19,000,000, in addition to the $30,000,000 it contributed to revenues in 1965, for a total to date of more than $49,000,000. With the addition of five Academy Awards, including the best film of 1965, “The Sound of Music” is clearly destined to be not only the largest grossing film in the history of the motion picture industry but also a source of recurrent profits to 20th CenturyFox in the years beyond its current release program. The other roadshow productions, “Those Magnificent Men in Their Flying Machine.s” and “The Agony and the Ecstasy,” which is just now going into general release, along vshth other outstanding pictures such as “Von Ryan’s Express” and “Our Man Flint,” have also con¬ tributed significantly to income. Zanuck also reported that the corporation expects to maintain its leadership in supplying films for prime time television. It has already set network commitments for 10 hours of prime time for 12 programs for the fall season as compared to seven-and-one-half hours for eight programs at the same time last year. Twentieth Century-Fox is continuing to em¬ phasize major film productions which are first released as reserved-seat attractions. “The Blue Max” is the next film of this caliber and will open late in June. It will be followed in September by “The Bible,” and following this will be “The Sand Pebbles,” produced and directed by Robert Wise, Academy Award winner for his direction of “The Sound of Music.” "Sound Of Music" Theatrical list WB Expansion Includes New Animation Division BURBANK, CALIF.— In its continual program of expansion, Warner Bros, will establish a new animation division at its studios, it was announced by Jack L. War¬ ner. This will reactivate Warner operations in the production of its own cartoons at its own plant. William L. Hendricks, long associated with the studio, will head the project which, in addition to cartoons, will pro¬ duce industrial and commercial films for exhibition in motion picture theatres and tv, Warner explained. Establishment of the animation division follows the recent formation by Warner Bros, of a new and wholly owned sub¬ sidiary to produce and market cosmetics, a subsidiary to own and operate community antenna tv systems, as well as the continued operations of Warner Bros. Records, Inc., and Music Publishers Holding Corp., in addition to its basic motion picture and tv activities. J.F.K. Pic Bows In N.E. BOSTON — “John F. Kennedy: Years of Lightning, Day of Drums” had its New En¬ gland premiere here at the Circle Cinema in Brookline before a benefit audience which in¬ cluded notables from all walks of life. Among the invited dignitaries were Massa¬ chusetts Governor John A. Volpe and his wife, Ex-Governor and Mrs. Endicott Peabody, and Mayor Daniel J. Hayes, Jr., of nearby Cam¬ bridge. Full newspaper, radio and television coverage was accorded the gala event. A champagne reception for the honored guests preceded the premiere, which was spon¬ sored by the Lesley College Schools for Chil¬ dren. Mrs. Peabody served as chairman of the premiere committee, with Mrs. Count Basie, wife of the famed bandleader, acting as cochairman. Disney Loses First Round In Camera Rig Patent Suit CHICAGO — A patent suit brought by Walt Disney Productions against the Fred A. Niles Communications Centers, Inc., and Behrend’s, Inc., both of Chicago, regarding the 360 de¬ gree panoramic motion picture rig used by Niles to film a 360 degree motion picture for the New York World’s Fair, has been decided in favor of Niles and Behrend’s. A judgment on the case was recently handed down by Bernard M. Decker, U. S. District Judge, in the U. S. District Court, Northern District of Illinois Eastern Division. The suit filed by the Disney studios claimed that the rig, which w'as built by Behrend’s under contract to Niles, infringed on a patent held by the Disney studios. This patent was applied for and later issued on the 360 degree camera rig that the Disney studios constructed to film a movie for Disney¬ land. In the opinion handed down by Judge Decker, it was stated that “an order of judg¬ ment for the defendant has been entered . . . because the patent is invalid.” The opinion also stated: “The evidence shows that the rig described in plaintiff’s (Disney) patent would have been obvious to a person skilled in the relevant art. The evi¬ dence strongly supports this conclusion based on the prior art, while offering little support for plaintiff on the secondary tests of non¬ obviousness. The presumption of validity is clearly overcome and therefore the patent must be held invalid.” Both the Disney rig and the Niles-Behrend’s rig use multiple cameras in a vertical position shooting upward into mirrors. The cameras and mirrors are arranged in a circular position around the rig. By use of this technique, rather than having cameras point straight out, the problem of having the image of one camera overlapping another is overcome. In the case of the rig used by Niles, this also involved masking of the projection equipment. While the technical aspects of constructing .such a rig to achieve the desired results are complex. Judge Decker’s opinion, in essence, stated that prior art patents within the field would make the camera-mirror concept of construction obvious. Judge Decker referred to a similar concept developed for still photography. Walt Disney Productions has appealed the case. R B rhMiW'» Darryl F. Zanuck, president, 20th Century-Fox, presided over the annuel stockholders' meeting held at the Waldorf Astoria Hotel, New York. He is flanked by Richard D. Zanuck, left, vice-president in charge of production, and Seymour Poe, right, executive vice-president, along with other officers of the company. 8 MOTION PICTURE EXHIBITOR May 25, 1966