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16 ^> ^> ^> The Motion Picture Industry
group of exchanges for the production of pictures to augment the supply then being obtained from other producers. In every case the reasons were essentially the same. The company was anxious to control the quality and type of pictures handled at prices that seemed to be fair.
Having given a substantial amount of attention to the movement toward integration as between the producers and distributors, it becomes necessary to give some thought to the historical development of the acquisition by the producer-distributors of a larger measure of control over their retail outlets. The entrance of the producer-distributors into the exhibition branch of the industry was caused by a group of factors, a number of which originated in the peculiar technique required by the motion picture for its most effective distribution. The problems surrounding the pricing of pictures by distributors to theaters,7 competition for desirable play dates and the whole problem of booking,8 desirability of close checking upon physical distribution of the films under the control of the distributor, the problems arising from the collection of rentals and bad accounts, the inconvenience and expense of disputes,9 all are problems the existence of which undoubtedly explains this trend. It will be sufficient here to illustrate briefly the character of such influence. For example, a producer-distributor who owns his own theaters is provided with an increase in his bargaining power. Remembering that no producer today can offer a sufficient number of feature pictures fully to supply a theater operating, as the larger number do, two features or more a week, it will be realized that even the producer-controlled theaters must secure some pictures from outside sources. The more theaters a producer owns, therefore, the greater his bargaining power becomes when he enters the general market to buy. Probably a more fundamental explanation, however, than either of the preceding is to be
7 See Chapter VI.
8 See Chapters III and IV, f> See Chapter IX.