Motion Picture Herald (Oct-Dec 1956)

New Financing Provides Fresh Impetus to Production Picture . . . Chesler of PRM announces new division with $5,000,000 set; Screen Gems discloses a special financing fund of $2,500,000 The structure on which is built the entertainment industry is as resiliant as the men who lead its ranks — constantly changing in response to current stimulus and in anticipation of future eventuality. This week came announcements which spotlighted the two most recent of major changes within the industry: the openly acknowledged interdependence (mutual interest) of motion pictures and television, and the rise of the independent operator, be he producer, distributor, star, or, more simply and magnanimously, financial investor. From Hollywood came these reports: A joint announcement by Louis Chesler, board chairman of P.R.M., Inc., and Eliot Hyman, president of its wholly owned subsidiary, Associated Artists Productions, of the formation of a new division to engage in motion picture, television and theatrical enterprises with an initial fund of $5,000,000 to invest in these enterprises; and An announcement by Irving Briskin, production executive of Screen Gems, television subsidiary of Columbia Pictures, that Screen Gems has established “a special financing fund” of $2,500,000 for backing new independent television producers— the largest amount ever set aside by any major TV production company (and certainly by one that has a major motion picture company as its parent) for the sole purpose of financing independents. Mr. Chesler, an unknown in the entertainment industry until last March, at which time he came out of Canada to participate in the $21, 000, 000-purchase of the Warner Brothers library, and Mr. Hyman, his associate in that purchase, said further in their joint statement that Ray Stark, vice-president of Famous Artists Corporation, was resigning that position to head the new P.R.M. division. With headquarters in Hollywood, Mr. Stark will have the title of vice-president in charge of West Coast operations for P.R.M. and executive in charge of production for AAP. The all-inclusive nature of the division which Mr. Stark will head was indicated in the announcement as follows: it will “finance, develop, create and package motion picture, television and theatrical enterprises, as well as finance any and all elements concerned in the entertainment field.” The division’s fund was described as “a war chest of $5,000,000 to be made immediately available for investment in the entertainment field.” To supplement its activities in Hollywood and New York, the company will establish offices in London and Rome and operate on a worldwide basis. In addition to “packaging” stories, stars, directors and producers — a function most often performed by the talent agencies, the division also “will purchase interests in various production companies and in the contracts of top stars” and “actively participate in co-production ventures.” It will, in short, engage in almost every operation connected with the business of entertainment. Word from Briskin The announcement that Screen Gems was opening its doors wide to independent TV producers to the tune of $2,500,000, was made by Irving Briskin following a series of West Coast meetings with Ralph Cohn, vice-president and general manager of Screen Gems; John H. Mitchell, vice-president in charge of sales; Fred Briskin, production executive, and Milton Pickman, vice-president in charge of new program planning. According to Mr. Briskin, the $2,500,000 will be made available to “any producer with a package containing either star names or a powerful idea.” Such properties will be given complete financing by Screen Gems and also will be afforded the full production facilities of Columbia Pictures, he said. “We feel,” said Mr. Briskin, “that there are many producers seeking not only financing, but affiliation with an organization which can give their potential programs everything needed from production facilities through distribution and sales. Although we welcome star names, the doors are open just as wide to those with properties sufficiently powerful to make them worth producing. We hope to add several independent producers in the next two years to the impressive list already associated with Screen Gems.” Producers Named At present those independents producing for Screen Gems include Herbert B. Leonard Productions, “Adventures of Rin Tin Tin” and “77th Bengal Lancers”; Norbert Productions (Herbert Leonard Norman Blackburn), “Circus Boy”; Eugene B. Rodney-Robert Young, “Father Knows Best;” Bischoff-Diamond Productions, “The George Sanders Mystery Theatre”; Goodson-Todman, “The Web”; Harry Sauber, “The Shape, The Face and The Brain” and “Shore Leave”; Bryan Foy, “Emergency.” Exploring Means The plans of these two companies — P.R.M. and Screen Gems — and their respective “funds” are roughly the equivalent to that small proportion of the iceberg which appears above the water. “Under the water” there are other, perhaps even more powerful entertainment interests which are known to be exploring ways and means of taking a more active role in the financing and production of theatrical, motion picture and television fare. Both the Columbia Broadcasting System and the National Broadcasting Company have in the past discussed the possibility of financing and producing theatrical motion pictures which would eventually come to their TV networks. In recent weeks, these plans have been kept rather quiet in the face of various Congressional inquiries hoping to find the networks guilty of monopolistic practices. In the motion picture industry, no other company, except perhaps, Columbia, is presently as widely diversified — as far as the entertainment industry is concerned — as Paramount Pictures. One of its subsidiaries, International Telemeter Corporation, has the rights to one of the three major toll TV systems; another has developed a color television tube. The parent company also has sizeable holdings in DuMont Broadcasting Corporation and, for an extra fillup, is the sole backer of the forthcoming Broadway musical comedy, “Li’l Abner.” AB-PT Plan Cited Maybe an even more perfect example of the current trend is American Broadcasting-Paramount Theatres, the “divorced” exhibition arm of the Paramount Pictures corporate body. With the assets of a powerful theatre circuit and of a fast-rising radio-TV network behind him, Leonard Goldenson, AB-PT president, announced last month the company was planning to produce picture for theatrical exhibition. In the entertainment industry, as in international politics, the policy of isolation would seem to be a very dead duck. MOTION PICTURE HERALD, OCTOBER 27, 1956 13