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356 <^ -v> ^> The Motion Picture Industry
the chains just now are breaking. Their dissolution has already set in ; and if the quality of the pictures is not improved soon, such dissolution will be precipitated.
Man for man, the independent operator can always defeat the chain operator for business ; all the independent man needs is a fair break for product. But even lack of product is not such a handicap to many of them, for they succeed in taking in at the box office more money than is done by their competing chain theater, even though the pictures are second-run, — shown in his theater after the chain theater had shown them. With a better break for product, they would force every chain theater to fold up tent and to go.
Harold B. Franklin, recognized as one of the leading authorities on circuit theater management, believes that theater chains will be successful in the future but holds that they should' not continue to be controlled by producer-distributors. He believes that exhibition should be divorced from the other operating functions, since the high investment in theaters as contrasted with the relatively small investment in rentals of pictures renders the interests of the two functions diametrically opposed. Mr. Franklin believes further that to be successful chain theaters must have sustained quality in product, the securing of which depends upon selection of films from a broad field and without regard to the producers' identitities.
It has been held that one of the basic reasons for the failure of chain theaters under centralized management is that the system has been built on the theory that the entire public should be satisfied.8 Such an aim, although desirable, is held to be impracticable. Localized operation is suggested as a possible solution in that it might increase managerial efficiency.
Certain commentators are doubtful of the future success of chain theaters except perhaps on a very small scale. The inherently speculative character of the business, the necessity for high-quality pictures regardless of what company produces them, and the desirability of spreading the natur
8 Variety, February 4, 1931.