The motion picture industry (1933)

Organization ^><^^<^<?>^<z>^ 75 satisfactory to both corporations, the transaction was completed and booking arrangements were then made in the manner already described. In actual practice consummation of a deal of this sort was a long-drawn-out process. Usually innumerable difficulties arose from all sources involved. For example, division managers might object to certain pictures, knowing from actual experience that these pictures would not succeed in certain theaters located in their territories. Then, too, frequently it was difficult to arrive at an agreeable trade as between the sales departments of both companies involved. Consequently, as a general rule, three and sometimes four weeks or more were required to complete the purchase, for example, of Paramount pictures for Fox theaters. The trading process did not involve coercion. On the contrary, it was considered both ethical and good business practice for the Fox Film Corporation to insist on an equitable trade with competing producing companies operating theaters. Furthermore, the process often was advantageous to both companies involved, since no one theater operating company possessed enough theaters to insure its affiliated producing company adequate exhibition in all sections of the country; on the other hand, no one producing company produced a sufficient number of pictures to supply all its affiliated theaters. The purchase of pictures made by foreign producers was principally a matter of company policy based almost entirely on exchange quotas established by the several foreign countries. For example, at one time France required the purchase of one French film by an American company for every four films exported from the United States for sale in France.15 The buyer, to the extent to which he was acquainted with foreign films, took some part in the selection. Foreign films were sometimes purchased outright. They were more often purchased on flat-rental and percentage 15 See Chapter XIII.