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

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-51 . PAST IV. EXHIBITION Chapter IV. Unfair Trade Practices Clearance and Zoning Equitable clearance and zoning has been, and still remains, a most controversial problem within the Industry, Eeature films, which open in large cities for as much as $5,000 per week, may eventually return to those sane cities for $25.00 Pirst-run exhibitors, paying large license fees and charging high admission prices, have complained that insufficient time elapses between the first-run of a feature picture at a large theatre and subsequent runs in smaller theatres. Claims have been made that the payment of large fees entitles then to the wrotection of showing pictures without the fear that smaller theatres may present the same film so soon after the first showing, that prospective patrons would be inclined to wait for the lower admission prices on subsequent rims elsewhere. On the other hand, subsequentrun exhibitors have claimed that the major exhibitors receive unreasonable clearance of time between first and subsequent showings, and also that the large exhibitors have exacted rights over unreasonably large areas. Other Unfair Trade Practices host exhibitor contracts with distributors contain provisions that the exhibitor will charge specified admission prices aid the cost of the license to show the picture is based on these prices. Exhibitors, although publishing these prices, have often materially lowered them by offering gifts or preninmsj by holding lotteries, or by instituting a policy of throw-away tickets or twofor-one admissions. Once started, these practices spread throughout an entire competitve area and exhibitors have vied with each other in making more extravagant offers. The practice of showing two feature films for one admission price was an extremely controversial subject during pro-Code discussion. Social, religious, ana educational organizations protested that this policy of having a doublefeature program absorbed screen tine which would otherwise be given over to the showing of travelogues and other educational short subjects. Some independent exhibitors claimed that the elimination of this policy would deprive then of their only means of competing with the larger moving picture theatres. This practice, which spread rapidly in any territory where it was initiated, was soon adopted by the larger as well as the smaller theatres. Exhibitors as a group have considered unfair the leasing of films to nontheatrical accounts, i. e., to social, religious, and educational organizations which exhibit motion pictures such a.s travelogues, religious pictures, comedies, and educational short subjects* Exhibitors have claimed that discrimination has been used in the application of "score" charges. These charges are a hangover from the early days when "scored music" was sold in conjunction with pictures. rhen sound recording was introduced the "score" charge was continued, being included in the cost of the disc or sound track. 8976