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vertising department to any of the producers who wish to do additional advertising at their own expense.
Because of the limited number of productions which the company distributes, it sells its pictures individually. One of the principal reasons for this is that only this method of sale permits an equitable division of the receipts from the sales of the pictures. By selling the pictures individually the company knows the exact amount earned by each picture, thus obviating the necessity for an arbitrary division of the receipts in order to sell the pictures in groups.
Another reason which the company gives for selling individually is that such a method permits special stress on the merits of the individual pictures and enables the company to obtain higher prices for pictures of a given quality than it otherwise might obtain. Inasmuch as the company makes only a few pictures each year and attempts to maintain a high quality, it considers this factor to be of considerable importance.
Thus the United Artists Corporation has a distribution organization which is designed to meet the peculiar problems arising out of an unusual situation. It is able to use a method of individual selling, whereas for other companies the same system might prove quite unsuccessful.
The relationship between the distributor and the theater exhibiting the films naturally raises a series of very important and crucial issues. These problems center around selection of pictures, price, terms of sale, and dating. Important as these problems are, a consideration of them is not pertinent at the present moment, since we are now interested only in gaining a picture of the structure of the industry itself. Neither is it important here to consider certain distinctly theater management problems, such as those relating to labor, local advertising, building restrictions and requirements, and the like. It is necessary only to indicate briefly the typical theater organization, in order that some idea may be gained as to the requirements to be met in the successful management of a theater. In general these may be