Motion Picture Herald (Oct-Dec 1956)

COMPANY EXECUTIVES’ OUTLOOK OPTIMISTIC by LAWRENCE J. QUIRK Expressions of an optimistic outlook for the future and reports of a strong business upswing during the past fiscal year throughout foreign exchanges, highlighted the observations of sales executives of the major companies’ foreign departments last week. Typical of the outlook was that expressed by Lacy W. Kastner, president of Columbia International, who said that Columbia’s foreign business for the 22week period up to October 22 was 21 per cent over the corresponding period in 1955. “I am confident that our business will continue on the same basis for the balance of the fiscal year,” Mr. Kastner added. “For the moment the European and Mid-East situations have not affected us, but I fear that the longer the canal remains blocked, the greater will be the economic repercussions in England, France and the rest of Europe. One result may be a dollar shortage, and we might find ourselves with less immediate dollar revenue.” With reference to the non-shipment of films to Spain and Denmark over the past year, Mr. Kastner noted the pending negotiations with the governments of those countries over the unsatisfactory conditions and expressed the hope that these problems will be resolved shortly. He also noted that Columbia’s foreign business “has grown steadily with a solid increase in revenues each and every year.” Yeti' Problems Abroad A spokesman for Paramount said: “Business abroad has been up to last year’s level, which we consider excellent. This year, of course, there are several new problems, including an increased stringency on remittances from abroad, and a tightening of some government controls. Then, too, various foreign countries have sustained a dip in their economies.” The Paramount representative also noted a rise in nationalistic sentiments. This, he said, “was principally manifested in attempts to limit our imports and increase our costs with a view to their helping their native film-makers to exceed their past performance levels.” The Paramount spokesman added that he is optimistic that the MPEA’s efforts to aid the situation will be successful. He also noted the problem of controls on admission prices in some foreign countries, “with arbitrary price ceilings even on our big specials, with a consequent decrease in revenues.” He added that the MPEA was also attempting to correct this condition. “We have found,” he said, “that despite the indicated difficulties, our pictures have been very well received abroad. We expect an exceptionally fine reception of ‘War and Peace,’ for instance, especially in Europe, as the original novel is widely known there, an accepted classic that in many areas is almost obligatory reading.” “We still feel,” he concluded, “that motion pictures are, and will continue to be, the basic entertainment medium abroad for the masses. In most countries the threat of TV is fairly remote and should be for some years to come. With the proper kind of pictures, we feel we can count on a continued strong business.” A Warner Brothers executive said his company had enjoyed “an all-time record business abroad in the past fiscal year, especially in Latin America.” “The accent is definitely on the upbeat,” the Warner spokesman added. “There are fewer and bigger pictures nowadays, hence more time to spend promoting them. This extended promotion time brings correspondingly more satisfactory results. We have the material and the talents to flood foreign newspapers and magazines with publicity, plus plenty of time to plan our programs. Accent on Ne iv Ideas “There is accordingly no rush, and exploitation campaigns abroad are carefully conceived and thought out for maximum results. The accent today is also on new ideas, and we want them from bright young men abroad as well as in this country. Some of those fellows in England. France and elsewhere are very talented at recasting our angles and other ideas for the local consumption.” According to a 20th Century-Fox spokesman, the company’s international organization has stepped up, and will continue, its promotional analysis of the foreign market for its CinemaScope product. Through comprehensive tieups with publishers, for example, the company has aimed at pre-selling product derived from literary properties. The intensive 1956 sales campaign — The 20th Century-Fox Overseas Olympics Sales Drive — which has been tied in, appropriately enough, with the year’s major sports event, is certain to set an all-time record in overseas billings, the representative stated. “Exceeding its most optimistic expectations, the company has, in the less-thanfour years since the initial announcement of the development of CinemaScope, achieved virtual saturation in installations in every country,” the representative added, “and it has surpassed the original ‘saturation’ point in many territories abroad.” “Under the leadership of World-wide head Spyros P. Skouras and Murray Silverstone, president of the 20th CenturyFox International and Inter-America Corporation, the overseas organization’s initial target was to achieve a high percentage of installations among its regular customers. However, the instantaneous public and critical success of the anamorphic process resulted in installations that went far beyond what anyone might have dared to hope for.” “Business overseas this year will be, we expect, as good as last year — in a word, excellent,” the representative concluded. Highly optimistic was the tone of the spokesman for Universal’s foreign organization. “Barring unforeseen circumstances, we will continue to look to Europe as our main source of revenue. Further improvements in our always improving product will be our main weapon in the continued development of our prosperous European market. It is true that in some areas, like such Latin American countries as Brazil, Chile and Argentina, business dollar-wise is tempered by the differential in exchange. “But this is more than offset by the expansion we expect throughout South America. We at this company have every reason to feel positive and optimistic about the future,” the representatives said. “Take Asia. It is virgin territory, and lends itself to any kind of expansion that sound exploitational and merchandising principles can conceive. The Asian market will open up more and more. Japan, of course, is a flourishing market, and is of crucial importance. “Universal’s policy, we feel, is aggressive, and realistic at the same time. We are a sound company, prudent in our dealings, and the gains we make, we hold. We have every expectation of exceeding our last year’s business abroad.” BRITISH MARKET (Continued from page 17) — appreciative more than the next of that “Export or Perish” axiom — is committed now to an assault on the enclave of the U. S. The Organization is encouraged therein in the success which has attended similar attacks in behalf of Britain’s film outgivings on other territories, including Western Germany and, notably, South America. Looking at the munificent earnings which accrue to America’s pictures in this country, John Davis — the chief of the Rank Organization — demands a place in the American sun for his own offerings. Brightest aspect in this country’s otherwise bleak film prospect is the export market it has created for its motion picture equipment. In the year 1955 Britain’s export of equipment reached the all-time record of £2,267,911. Prime mover therein is the company known as Rank Precision Industries, which deals in everything from seating and screens to lenses. The company is riding a tide of prosperity both in the home and export market. 20 WORLD MARKET