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the making of motion pictures. It includes the preparation and photography of scenes; the developing of exposed films; the printing of projection films; and other studio and laboratory work required in the preparation of positive films for use. The distribution division involves the "renting" or "leasing" of films to exhibitors; the maintenance and physical distribution of the films, and the collection of due accounts. It also includes the outright sale of finished films and the sale of advertising materials. The exhibition division includes the commercial exhibiting of the finished films in the theatres; and also vaudeville and presentations given in conjunction with motion pictures.
This Industry, which has assumed a position of unusual importance because of its far-reaching influence upon social and economic standards and conduct, is characterized by rapid growth by the possibility of radical changes through technical developments in the film and related industries by the geographical concentration of production. It's further characterized by the large degree of integration of its three main divisions, and the individuality in the industrial practices which it follows.
Production, distribution, and exhibition are both horizontally and vertically integrated and the concentration of corporate ownership in the hands of a few large companies provides an economic division of the Industry between what are known as "major" and "independent" interests. The economic consequences of this concentration are reflected in nearly all problems of the Industry.
Assets
Tables I and IA sho',",T the assets of motion picture producers and exhibitors for the years 1930 through 1933. Fixed assets constitute the largest type in both the production and exhibition divisions. Total a.ssets of producers dropped from $934,000,000 in 1930 to $249,000,000 in 1933, while in the exhibition division total assets rose during the same period from $619,000,000 to $1,~ 076,000,000, The number of concerns reporting in the production division averaged around 175 each year, whereas in the exhibition group the number rose steadily from 1,889 in 1931 to 2,368 in 1933.
TABLE I
Assets of Motion Picture Producers, 1930-1933 (Dollars In Thousands)
1930
1931
1932
1933
Number Reporting
182
170
177
181
Total Assets
$933,847
$849,916
$411,622
$248,824
Current
Investments
Fixed
Miscellaneous
228,871 251 , 320 384,421 69,235
192,911 220,408 371,766 54.831
54,015 109,593 218,629
29,385
42,057 18 , 543 163.^40 24'4 584
Source: Bureau of Internal Revenue, tabulation sheets and published reports (Statistics of Income),
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