Evidence study no. 25 of the motion picture industry (Nov 1935)

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-8 The decrease in the profitability of the Industry has "been attributed to a number of factors, including over-expansion in the direction of seating capacity, erection of theatres at an excessive cost per seat, mismanagement within the Industry, payment of inordinately large compensation for services, and the effect of the depression upon the demand for entertainment. TABLE IV Gross Income and Net Profit or Loss, 1927-1932 (in thousands) Year Gross Income Net Profit or Loss 1927 $239,426 $8,032 1928 230,266 17,109 1929 343,445 44,400 1930 410,700 40,282 1931 441,948 -8,674 1932 190,795 -30,199 Source: Bureau of Internal Revenue, Statistics of Income, Net Income by Major Companies Table V shows the consolidated net income of six major companies for 1932, 1933, and 1934. Attention is directed to the recovery made by the three companies, namely, Pox, Warner, and Paramount, which had the largest net bases in 1932. The totals show that the group loss of $36,519,000 in 1932 had by 1934 been turned into a net income of $14,371,000. TABLE V Consolidated Net Income or Loss for Six Major Motion Picture Companies, 1932-1934 (in thousands) Company 1932 1933 1934 Group Total -$36,519 $4,568 $14,371 Columbia Pictures Corporation 574 740 1,009 Pox film Corporation 16,151 1,411 3,000 a/ Loetr' s Incorporated 7,961 4,034 7,480 Warner Brothers Pictures, Inc. 14,095 -6,292 -2,530 Universal Pictures 1,250 -1,017 500 a/ Paramount-Publi.c Corporation 13,558 5,692 a/ 5,912 a/ Source: Standard Statistics Company, Standard Trade and Securities. "Theatres and Motion Pictures, « Vol. 75, No. 22 (Pehruary 20, 1935). a/ Estimated. 8976