Motion Picture Herald (Jan-Mar 1956)

COLVMBIA FOLLOWS RKO IN SALE-TO-TV PARADE Through Its Screen Gems Firm Makes Available 104 Features to TV The wedding of films and television continued to make news this week. Columbia Pictures said it had authorized its whollyowned television subsidiary, Screen Gems, to release a group of 104 feature films. “This does not constitute a sale,” the statement said, “we will maintain our title to the pictures and to all residual rights.” The titles of the pictures were not disclosed. Last week RKO sold its entire library for television release and theatrical distribution abroad. The Columbia statement said that the release of the films to television “takes cognizance of the changing character of our business and the need for all companies to remain fluid and flexible. As a matter of good business judgment, our management has decided that it wants to study at first hand the potential of the television market as it relates to feature pictures which have already been reissued theatrically and are now dormant in a socalled ‘backlog.’ ” The company added that the move would also provide it with additional working capital for the expanded theatrical production program “in which we are now engaged and which will be further accelerated in the immediate future.” Columbia or Screen Gems officials could not be reached for further elaboration last week but it was confirmed the films involved were made prior to August, 1948, the cut-off date of various guilds in determining fees for pictures sold to television. Paramount Sells Shorts to U. M. & M. TV Corporation Another major company, Paramount Pictures, sold outright the negative rights to 1,600 shorts produced and released through September, 1950, to U. M & M. TV Corp., it was announced by the latter. In addition, U. M. & M. has been granted first option rights on any short subjects and cartoons Paramount may wish to release to the television markets in the future. The television company may rent the films for television use anywhere in the world and for theatre showings outside the U. S. and Canada, which is similar to the RKO deal. A. W. Schwalberg, former president of Paramount Film Distributing Corp., represented Charles M. Amory, U. M. & M. president, in negotiating the deal with Barney Balaban, Paramount president. The purchase was said to represent the largest number of shorts ever released to television markets. In still another deal Trans-Lux Pictures bought exclusive television and theatrical distribution rights to the Encyclopedia Britannica Films library for a 10-year period, it was announced by Richard Brandt, Trans-Lux Pictures vice-president. Encyclopedia Britannica specializes in educational films. Under the deal, Mr. Brandt said, “we have a right to choose” which educational films will be marketed. He added that in addition to the library of some 700 educational shorts, Trans-Lux Pictures will have access to the current and future production of Britannica Films, which makes from 50 to 60 educational shorts per year. The television distribution rights will accrue to Trans-Lux in six to eight months while theatrical distribution rights go into effect immediately, Mr. Brandt said. He added that his company will begin the theatrical distribution by composing a package of 10 to 20 films, some of which will be marketed in conjunction with the firm’s feature films. Exhibition Worried by RKO Deal Repercussions Reaction in exhibition circles to the acquisition of the RKO films varied last week. Some officials felt that many films in the deal will make stiff competition to current theatrical product and may make a serious dent in theatre patronage. Gerald Shea, president of the Shea circuit, said, however, “If RKO is going to use the money to provide working capital for new pictures which will go to theatres first with a proper clearance before they are sold to TV, I think it could be a good thing.” He added he did not advocate such sales to television, but that there is nothing that can be done to alter such deals once they are consummated but to demand that proper clearances be given to theatres before any theatrical motion pictures are shown on TV. One exhibitor organization leader said the deal represented no surprises. It was expected with General Teleradio’s acquisition of RKO Radio Pictures, he added, and it’s CBS NEGOTIATING FOR TERRYTOONS Negotiations tor the purchase by the Columbia Broadcasting System of all the assets of Paul Terry's Terrytoons, Inc., were reported last week to be reaching the final stage, although the principals could not be reached for comment. It is understood the network would take over 100 per cent stock of the company, in addition to more than 1,100 cartoons and merchandising licensing rights to the Terrytoon characters. hard to tell what the consequences at the boxoffice will be at this time. Other exhibitors were more pessimistic. These exhibitors, representing first-run houses to suburban situations, felt that the impact of the RKO product sale may eventually force some small houses to close down, especially in areas around the country where there is a heavy saturation of television. One of these exhibitors said, “Some of these quality RKO Pictures, such as the Ginger Roger s-Fred Astaire musicals, will give some good first-run situations, which are presently confronted with a shortage of continuous good product, a good fight in attracting patronage.” Sees Possibility of Sales By Other Distributors One circuit operator said once these pictures start their exhibition on television and begin attracting big home audiences, “which normally would go to theatres for film entertainment,” it is then possible that other film companies might sell or lease their film libraries to television. “I am aware that the major producer-distributors have said that they will not sell their old films to television, but they sure can change their minds,” he added. Top executives of the film companies in New York refused to comment on the effect of the RKO product on television to theatres and whether their companies would change their policy in regard to selling their feature libraries. However, one top network executive felt that the chance of further sales comparable to the RKO deal is remote. He said there is not enough time available on television at* this point to absorb the amount of film which would accrue from such deals. O'Shea Leaves Paramount; Heads Sales for Magna E. K. O’Shea, sales executive, this week disclosed he is leaving Patemount and within a few weeks will be at Magna Theatres Corporation as vice-president and world sales manager. He is leaving after nine years and with the “regret” of his chief, Barney Balaban, Paramount president. Mr. O’Shea came to the company when it purchased control of Liberty Pictures. Previously, for many years, he was with Loew’s as eastern and southern sales manager. The new association is assumed to mean acceleration of “Oklahoma !” distribution plans. Mr. O’Shea was vice-president of Paramount Film Distributing Corporation. His resignation produced the following realignment, announced Wednesday: Hugh Owen, vice-president, goes from western to eastern sales managership; and Sidney G. Deaneau, who had been Mr. O’Shea’s assistant, becomes western sales manager. 13 MOTION PICTURE HERALD, JANUARY 7, 1956