Motion Picture Herald (Oct-Dec 1956)

The World Market Bright With Future Promise for Motion Picture Industry by VINCENT CANBY Around the world in 22 countries, the future of the motion picture business seems as bright with promise as at any time since the end of World War II, according to The HERALD’S 11th annual survey of world market conditions. There are several notable exceptions in the general picture of happy prospects but the reasons in these isolated cases are special and individual, rather than the results of any global influences. Television, the post war baby which brought panic to the United States industry five years ago, now is beginning to walk upright in several other countries, particularly in Italy, Canada and Australia. American films continue to dominate the world’s theatres (most of which now accept the new screen techniques as a matter of usual course) but perhaps on a slightly smaller scale. Worldwide interest in the product of a number of other nations is growing. Japanese films this year continued to win international awards. Indian films also made headway outside the domestic market. The correspondent in Mexico City has reported the local product competed with American product more strongly than ever before. Co-productions between nations go on — the most notable of the year being the Italian-American production of “War and Peace” which brought credit to both Italy and the United States. It is perhaps ironic that at the very time its production skills were being so widely acknowledged, the Italian industry found production capital so hard to come by. Over-Abundance in France Also ironic is the fact that French producers, who this year made such a successful showing in the U.S. market, found themselves “over-produced” at home. Talk now is that there will be an unofficial moratorium on all feature production there for maybe six months. On the exhibition side, business was booming at Japanese theatres. Attendance also was up in Argentina, Germany, Holland, Ireland, Israel, Mexico, New Zealand and Switzerland. It was holding steady in France, Belgium and Venezuela and was estimated to be down only in Denmark, Italy, Norway and Canada. The unusually cold European summer was credited — along with strong U.S. product — for the good showing in Ireland, France and Holland. Exhibitors in Brazil and Argentina continue to be hamstrung by various governmental restrictions, the ceiling on admission prices in particular, though the Argentine correspondent reports this situa tion should be eased shortly. An ominous note is heard from Italy, where there were reports of new moves to tax the industry even further, described as being indicative of the government’s attitude towards all the entertainment media. A country-by-country report on these and other facts follows: ARGENTINA by NATALIO BRUSKI in Buenos Aires From the Argentine exhibitor’s point of view, the outlook for 1957 is very favorable. This estimate is based on the assumption the ceiling on admission prices will be lifted, as has been promised, and that there will be an increase in the number of top films imported from the United States and abroad. Oddly enough, the very circumstances (high construction costs and the admission price ceiling) which have resulted in the complete curtailment of construction of new theatres, also have led to the high level of business at existing theatres. In the last year in Buenos Aires several legitimate houses were converted to motion pictures — and with success — proving once again that this is the most popular form of entertainment in this country. Offsetting, to a certain extent, the abnormally low admission price structure in Buenos Aires, has been the fact that the city is notoriously “under-seated.” That is, the population has been increasing steadily, while the number of theatres has not. Thus, exhibitors have been able to increase their business despite the price freeze. Distributors, however, have not been so lucky, and the outlook for them will not get any better unless the value of the peso should suddenly improve in relation to the dollar. Attendances in Buenos Aires, the focal point of all film business here, increased to 56,840,303 for the first nine months of this year from 53,258,166 for the corresponding period last year. Total attendance in 1955 was 69,050,047. AUSTRALIA by FRANK O'CONNELL in Sydney Undoubtedly, the major event of the year in Australia was the introduction of television. Still only a few weeks old (at the present writing there are only an estimated 12,000 sets in Sydney and 8,000 in Melbourne), the impact of the new medium has yet been slight, even with the Olympic games here boosting sales. The public is not rushing to buy sets, principally because of the high prices and poor quality of the programs. Another of the year’s significant events here was the opening of drive-ins in New South Wales. Metro, with a twin drive-in, and the exhibitor combine headed by Hoyts, entered the field simultaneously with both rushing the openings even before construction had been completed on the individual plants. Australians are accepting them with their usual reserve. As with conventional theatres, drive-ins are reaping a substantial portion of their profits from concession sales. Circuits Reap Big Profits This year, as last, the major circuits have announced record profits, and while the exchanges do not publish figures, it is known that several of them — at least — have had an excellent year. The trading outlook for the next 12 months does not look as bright as it did this time last year, owing largely to the presence of TV. Some exchanges are reported to have sold various properties to the television stations, but so far there has been nothing new, or even reasonably new, on the home screens. Some executives feel that a number of smaller theatres must close in the near future. More and more theatres are converting ( Continued on page 6) WORLD MARKET 3