Motion Picture Herald (Nov-Dec 1948)

(Continued from page 6) have so far been able actually to produce, while the rest are waiting for studio space and for raw stock. Only two of the four large pre-war German companies producing raw stock are still in the field: Otto Perutz GmbH in the west and Wolfen in the Soviet zone. Raw stock shortages permit only 10 or 20 copies of a picture, as against 60 to 120 before the war. A further problem is the steady drop at the box office since the currency reform. Thus the German industry is well aware that production costs will have to come down drastically from the little under 1,000.000-marks budgets of pre-currency reform days. Distribution is at present handled by the Motion Picture Export Association in the U. S. zone, by Eagle Lion Distributors in the British zone, by Internationale Film Allianz in the French zone and by Sovexport and DEFA in the Russian zone. Each of the three western distributors operate in all of the western zones. Additionally, a number of independent German firms have been admitted to these zones under U. S. and British licenses. Theatres, which up to the currency reform enjoyed a box office boom, will have to adjust themselves to reduced attendance. There are approximately 5,000 theatres in Germany, 2,500 of which are in the U. S. and British zones, combined. Average seating capacity of these houses is about 350. Theatre ownership and operation by any one firm is restricted in both the British and_ American zones, nor may production, distribution and exhibition be united in the hands of the same company. In the Russian zone, the industry is organized as a state monopoly, after the Soviet example. The French zone is tending toward monopolistic conditions. GREAT BRITAIN • • • by PETER BURNUP in London Pervading the entirety of motion picture's scene in Britain are a succession _ of Governmental ordinances arising exclusively, it is claimed by faithful Government men, out of the disequilibrium of the country's foreign exchange, but inducing uncertainty, if not despondency and alarm, among overseas film men hitherto trading here or prepared to do so in the future. On the confession of Ministers themselves of the present Socialist Administration, some of those ordinances were ill-digested, hastily prepared, devices which caused embarrassment not only to potential traders but to the Government itself. But the pattern is now set, at least for a considerable period, and conditioned by two edicts, namely : The Agreement concluded in March last year between the Government's representatives on the one hand and MPAA and SIMPP on the other which restricted dollar remittances of American film-hire to $17,000,000 per annum, plus the equivalent of British film earnings in the dollar area. The Cinematograph Films Act. 1948, which demands that the country's theatres shall show a 45 per cent quota of British films. In regard to the latter, out of the country's 4,706 licensed theatres, 1,353 have been conceded, in accordance with the statute, varying degrees of quota relief. They will be called upon to play quotas on a scale ranging from 40 to 10 per cent. Additionally, 283 small theatres are completely exempt from the act's provisions. Remaining theatres must play the full quota of 45 per cent with the threat of legal prosecution in the event of willful default. Set against the picture of unexampled prosperity which war's heyday spelt in Britain for Hollywood's film-makers, current conditions of the country's markets have an understandably acid tincture. Nevertheless, film men here urge that the time has come for a realistic reaccounting of this market's potential. They claim that Britain is still among America's best motion picture customers, if not indeed the best ; suggest that the prudent, forward-looking vendor of motion pictures, to his own manifest albeit tightly curbed profit, should maintain his stake. Britain's theatres have become a completely reconditioned market so that largely its potential is unpredictable. Nevertheless, certain factors are already ascertainable. From several causes — not least being the continuing anxiety fixation regarding the sombre, uneasy international situation, also the more obvious fall in the purchasing value of the worker's pound — a recession of some dimension has occurred in box office takings. Against the £31,000,000 weekly average of paid attendances obtaining a year ago, the average now runs around £27,500,000, although J. Arthur Rank recently claimed that in 10 weeks of last summer his Odeon and Gaumont-British theatres showed a "material," but undefined, increase in their takings over the same period last year. Seen Temporary Expedient Following upon the Government's imposition of the 45 per cent quota, MPAA declared that in future no American film would be booked to theatres here with an accompanying British picture. Practicability of the edict has been widely questioned, non-MPAA distributors like United Artists having already refused to fall into line. Qualified observers lean to the view that the plan is a temporary expedient only ; otherwise, they say, a still more pronounced fall in overall receipts may well occur. Critical key to the largely unknown box office future is the currently unforecastable reaction of audiences to the greatly increased number of British pictures put before them. But exhibitors themselves declare that therein lies a challenge to Hollywood. Mr. Rank has stated unequivocally that, in his Odeon theatres, the average takings per week per theatre of British films is £581 against £566 for "foreign" films. None is keener than the independent theatre owner that the validity of that claim should be tested at his own box office. The independents look to a long procession of choicer Hollywood offerings for the sustenance of their box offices. It is also not inaptly pointed out that, despite American assertions that the European market (manifestly including Britain) may be written off by Hollywood, up to the outbreak of war British film remittances to America ran around £7,000,000 only. Closely integrated with the over-all potential of the British market are the so-called "permitted uses" of unremittable sterling accruing to American traders. Shrewd observers continue to hope that more use will be made of blocked sterling in American production here. GREECE • • • by D. PAPADOPOULOS in Athens During the 1947-48 season, 590 films were shown here, 399 of which were of American origin. American product is the most popular, with English films taking second place. The professional critics and the public differed decidedly in their tastes, the public supporting those pictures which the critics disapproved, and the critics praising those which the public would not attend. Ten Greek productions are expected to be shown on the local screens during the 1948-49 winter season. All of the Greek distributors have announced foreign product for release during the new sea son. This includes features from the U. S., I from Italy, France, England, Egypt and Turkey. The country's wars and involved political ! situation have retarded the rebuilding of the \ industry here and taxes are high. There was a \ marked decrease in attendance this season over \ last. HOLLAND • • • by PHILIP DE SCHAAP in Amsterdam In a nutshell, the present situation in Holland can be considered as rather favorable for American product. For the period from August 28, J 1948, to August 27, 1949, the number of weeks which can be given over to U. S. product has been increased to 38 from the 32 weeks for the previous 12-month period. For the first six months of the present period, exhibitors must dedicate eight weeks to non-American pictures and for the second six months the number of European weeks will be only six. Holland has 471 theatres, 25 of which are not yet in operation. Theatre attendance, which totaled 88,700,000 during 1946, decreased to 79,800,000 in 1947. A further decline for 1948 must be expected. What amounted to a catastrophe for the theatres came in April when the Government boosted admission taxes from 20 per cent on the average to 35 per cent. Prospects are favorable for American product during the 1948-49 season, for the Dutch public is American-minded. Holland is still no free market, but the American distributors can get about 60 per cent of their receipts transferred to them in dollars. French pictures have lost their popularity and British product shows a decline. The U. S. is leading the market in Holland in quantity as well as in popularity. At the end of this year the total number of imported pictures will be approximately the same as last year — about 500. More than 50 per cent of this total will be of American origin. British pictures take second place. HUNGARY • • • The entire film industry has been nationalized and placed under supervision of the State Film Bureau, Orszagos Filmhivatal. Alexander Sala is in charge. Hungarian production is supervised by Ferenc Hont, Geza Radvanyi and Bela Balas. Eight features were completed during the 1948-49 season. The country plans to produce 48 features a year by the 1950-51 season. Until the industry was nationalized, the Motion Picture Export Association released U. S. product. At present no new MPEA features are being released. The monopoly, however, is buying outright a number of independent productions. The MPEA and the State Film Bureau have been conducting negotiations for the release of new product here. The state's distribution organization is Magyar Filmforgalmi Nemzeti Vallalat, headed by Georges Angyal. Its production organization is Magyar Filmgy'arto Nemzeti Vallalat, headed by Dezso Revai. Its exhibition organization is Nemzeti Vallalat, headed by Joseph Partos. ISRAEL • • • by ALBERT D. MATALON in Tel Aviv Optimism pervades the new state which was born on May 15, 1948. Notwithstanding the war and all its implications, the outlook is good and hopes are bright regarding the future. Nothing can daunt this spirit, not even the increase of taxes which is expected to come into (Continued on page 15) 8 WORLD MARKET MOTION PICTURE HERALD, NOVEMBER 13, 1948