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could provide a product of consistently high quality at costs which would be insignificant when compared with the results achieved. On the other hand, the production cost was of vital importance to companies whose source of income was derived solely from the sale of trailers and screen announcements. For this reason, definite limitations were placed on the material contents of the product of these companies.
The general acceptance of percentage film rental policies by the motion picture industry in 1928 and 1929 made possible the utmost cooperation between producer-distributors and exhibitors. Under the flat rental method the distributors naturally wanted the exhibitors to achieve success and often aided them by participating in the expenses of local advertising campaigns. However, they were not vitally interested in' the purchase of trailers for their pictures, and consequently the booking of trailers rested entirely with the exhibitors.
Percentage price policies, in that they provided for an equitable distribution of box office receipts between the distributor and exhibitor, changed the nature of this situation. As a result of this development the need for a company trailer service became apparent to Warner Bros. Pictures, Inc. In the first place, the company realized the advisibility, not only of showing any trailer for each Warner picture, but of showing one that could produce maximum results. The possibility of increased box office receipts was of much greater importance than the production costs of trailers or the prices paid for them by exhibitors. It was recognized, furthermore, that the exhibition of a complete Warner program on a percentage rental policy might warrant the free distribution of trailers to the theaters booking such programs. Obviously an independent trailer company would not fit into such a situation.
In accordance with its decision Warner Brothers organized, as a division of the advertising department, a department for the production of trailers. Since members of the company's regular staff could be employed in such produc