Motion Picture Herald (1954)

oCetterd to the ^Jlera hi Film Rental Problem To the Editor: For approximately 30 years I have been calling on exhibitors and during that time I kept saying they should create a new atmosphere by setting aside a certain part of their gross to rehabilitate the theatres and I kept telling them some day that they would be sorry they did not fix up. I had a certain amount of success but they had just about every excuse that could be concocted. On January 1 of this year, I purchased the Plaza theatre in Burlington, Wisconsin. There was a product shortage at that time and I immediately say that the only way we could operate this theatre would be to put in stereophonic sound with surrounding speakers, a screen the full width of the theatre, cut off the rear exits and put in some side exits to compensate. I put in a lift curtain, glass doors, box office, new vending stand, new front, all of which cost $45,000, and loge chairs were also installed. There isn’t a better looking theatre in Wisconsin than the Plaza. I thought to myself, I am going to prove, one way or the other, that we are right. In the first six months, the theatre lost $2,878 on all the pictures played. We played all the CinemaScope pictures right after they were played in downtown houses in Milwaukee. We sold approximately the same amount of tickets this year as in 1953. The average film rental for the first six months was a trifle more than 40 per cent. Our accountant sent a statement to all the producers showing them exactly what their pictures made or lost for the first six months. They have been giving us adjustments and we hope to make at least 10 per cent net profit. I concluded the following facts : That we cannot pay 50 per cent for pictures in this 527-seat theatre. I have proved that the producer was wrong in telling us that the theatre was obsolete and that’s why we couldn’t make any money on a 40 per cent average film rental such as they had in 1953 and still have in 1954. This proves one thing to me — unless the producer cooperates, the exhibitor is never going to get nerve enough to spend any money rehabilitating his theatre and bringing it up to present day standards. In other words, if I knew what I know now from six months of operation, I would never have spent $45,000 to bring this theatres up to present day standards. I know for sure why our manufacturing business in serving theatres in modernization and so forth dropped from one-half million in 1949 to less than $100,000 in 1953 and will be less than $50,000 in 1954. If this continues, we know for sure that no one will invest any money in rehabilitating theatres and consequently they will just get worse and fall off to nothing. I can recall in Wisconsin in 1954 there were only three theatres out of 256 that were modernized to any degree. Two of them spent less than half of what they should. We went all the way and did it as the job should be done. At this moment, I feel as follows : 1. Either the film companies must let us make a 10 per cent net profit on all the pictures that we play or we will sell out because we can buy or we can make 10 per cent net profit investing money in any of our other businesses. During this six-month period I gave individual attention to this theatre. I have done everything conceivable. I have given each of the seven producing companies a profit and loss statement and showed them exactly what we made or lost on each picture. (Burlington has a population of 5,000 and is 35 miles from Milwaukee and from Racine, Wisconsin.) I see no salvation for this theatre unless they let us play pictures on a sliding scale. In the statement we gave to the producers, we told them we would be glad to prove our figures. 2. They cannot say that we don’t know anything about the business because we are successful in other businesses and employ a full-time accountant. We will continue to operate this theatre for the balance of this year and find out what is going to happen and whether or not we are going to get enough adjustments back from the film companies to take care of our loss. We are now sure that some of the exhibitors that we know personally and whom we have done business within the past have cut their expenses so that service they give patrons is ruining them. It is my opinion that they are driving the customers away from the movies. It will never happen to us if we have enough money to be able to operate the balance of the year in the best possible manner. I would like to call to your attention some of the things we have done regarding advertising. We installed over $1,200 worth of poster cases in our surrounding territory. We increased our mailing list of 2,000 to 6,000 direct mail programs. Two weeks ago, we hired two cabs and my son Bill, who is manager, took all the people home during a rain storm at the break of the first show. We have arranged that patrons can call the theatre at 9:00 in the morning until 12 midnight and always find somebody to answer the phone. Over 25 tons of refrigeration were installed, all controlled WHEN AND WHERE October 10-11: Allied States Association Fall board meeting, Schroeder Hotel, Milwaukee. October 12 15: National Allied States "Silver Anniversary" convention and trade show, Schroeder Hotel, Milwaukee. October 17-24: Seventy-sixth semi-annual convention of the Society of Motion Picture and Television Engineers, Ambassador Hotel, Los Angeles. October 27: Allied Theatre Owners of Kansas and Missouri, annual convention, Aladdin Hotel, Kansas City, Mo. October 3 1 -November 4: Annual combined convention of the Theatre Owners of America, Theatre Equipment Supply Manufacturers Association, Theatre Equipment Supply Dealers Association, and International Popcorn Association, Conrad Hilton Hotel, Chicago. November 8-9: Missouri-lllinois Theatre Owners, annual convention, Chase Hotel, St. Louis, Mo. November 14-16: Theatre Owners of North & South Carolina, annual convention, Hotel Charlotte, Charlotte, N. C. November 16-17: Allied Theatre Owners of Indiana, annual convention, Marott Hotel, Indianapolis. November 17: Annual dinner of the Motion Picture Pioneers, Hotel Astor, New York City. November 19-20: Colosseum of Motion Picture Salesmen of America, annual convention, Drake Hotel, Chicago. November 21: Screen Producers' Guild, annual milestone dinner, honoring Nicholas and Joseph Schenck, Statler Hotel, Los Angeles. November 21: Pittsburgh Variety Club, Tent No. I, annual banquet, William Penn Hotel, Pittsburgh. November 21-23: Motion Picture Exhibitors of Florida, annual convention, Roosevell Hotel, Jacksonville, Fla. December 5-7: Theatre Owners of Oklahoma, annual state convention, Biltmore Hotel, Oklahoma City. December 7: independent Exhibitors of New England annual convention, Hotel Bradford, Boston. automatically, conditioning the air. There is nothing left to do except to wait until the producer makes up his mind that he will regulate his prices to a point where we can make at least a 10 per cent profit. — B. B. Porlocki, President, Poblocki and Sons Company, Chicago, III. 8 MOTION PICTURE HERALD, OCTOBER 2, 1954