Motion Picture News (Jan-Feb 1922)

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January 7 , 1922 383 1 What Is to Be Exhibitors' Policy for 1922? | “Real Service”! IN an article published in the December 24th issue of the Reel Journal, Phil L. Ryan writes some interesting comjments on the past and future of the business of exhibiting motion-pictures. Some of the more important paragraphs from Mr. Ryan’s article in the Reel Journal, which appeared under the caption, “Seeing the Future Through the Past,” are submitted in the following, with full credit acknowledged to both the author of these remarks and the publication in which they originally appeared : “Almost the beginning of this year marked the close of an unprecedented era of unprecedented prosperity of every branch of this industry. ‘‘ Beginning with production and ending with the investment of theatres. The men responsible for the investment of money in this business have all built upon the theory that this period of prosperity we have passed through would be an indefinite one. “The exhibitor is prone to place the burden of blame for extravagances that exist on the producer. It is true that a great number of producers have flagrantly wasted money in the making of motion picture productions. And it’s just as true that the policy of present-day entertainment as practiced by hundreds of exhibi Itors is just as extravagant in its kind. * * * “The throes of the business depression we are undergoing at the present time as exhibitors, distributors or producers, began with a ‘drizzle.’ . It came upon us j slowly, and as members of this industry 1 we apparently thought ourselves immune from the depression that so vitally affected all other lines of commercial activity, and because, like a ‘drizzle,’ it came slowly, it will be with us a long time and it will take weeks, months, several months before we may again feel that ease and contentment of mind that comes to men only when their affairs are in a position of security. “To effect the solution of the epidemic that now blankets us, there must be instigated radical changes for conservation of resources and economy in operation of every branch of this industry. If there is an over-production of film product, it is not any greater in proportion than the over-production of seating capacity in the majority of our larger cities. The solution | will not be found alone in the reduction of j rentals, because any exhibitor who is I honest with himself cannot but admit that what he is paying to-day for his average program represents but a small percentage of his total expense or total gross income.” After pointing out the widespread unemployment that affected many industries and sections the country over during the past several months and the resultant i “ I am sure this (Booking Guide) is going to be a great help — as it will mean that I may discontinue my own work of compiling a reference. In other words — you are making a book of just what I have been carrying myself in card form. That is REAL SERVICE. “Yours very truly, “ STANLEY C. WARRICK, “Fashion Beaux Arts.” Palm Beach, Fla. denial of luxuries — and therefore amusements— practised by many of those still drawing salaries, Mr. Ryan comes back again to the effects of this situation on the future business policy of the exhibitor. He continues : “Now you see in looking back over what has happened we can better look into the future. Never again will the theatre owner, producer or distributor be able to make the fabulous profits that they have all enjoyed. Every theatre owner must be prepared to take in a lesser gi'oss than he has enjoyed for the past four years. “And to do this it is your problem to reduce the operating expense by cutting wages in every department that you operate and by forcing the unfair producer, who has ‘extracted’ an unfair share of your income, to begin the reduction of the total elimination of wasteful expenditures in not only studios but in the selling of film goods. There are theatres operating in the United States to-day that would lose several thousand a month were films given to them free. So it can’t be entirely the fault of the cost of the picture. “Admission prices must be — they have to be lowered, in every class of motion picture theatre. An appeal must be made to the pocketbook of the motion picture consumer. It is important to also consider that we, in our business, face not only this economic problem, but we have found in the important centers of the United States in this past year a new competition. This was brought about by rivalry between vaudeville circuits who have erected magnificent theatres, with large seating capacities, not caring whether or not the population of the communities they have entered could stand to support their investments. They have not only opened institutions that have directly affected every boxoffice in their community but they are offering a program of entertainment that includes not only vaudeville, but motion picture features and short subjects presented in a beautiful environment and atmosphere at a price in most instances less than that which the picture competitors are charging or asking for pictures alone. “Most of the theatres are losing almost unbelievable sums of money each week. Most of the owners of these theatres admit that there must come a reduction of admission prices so that the motion picture amusement may be put within the reach of the many thousands of people whose salaries are not to-day, and never will be again, what they have been the last four years, during the war boom in this country. “The more liberal-minded exhibitors are not primarily interested in driving down the film rental. They realize that the producer has a tremendous investment in his overhead and other expenses. They further appreciate that he must make money on his investment to interest capital to make pictures with. Some of these theatre owners insist that the producer will have to take a share of the loss, but are not charging this condition alone to the high cost of film. The problem cuts deeper than that. It is the high cost of everything in the theatres. An operator drawing $70 a week to-day received $30 four years ago. Such factors as this are important to the equation. In one of these cities mentioned above, the end men in the orchestra of one of the theatres now receiving $65 a week, formerly received $25. There are twenty men in this orchestra — a difference of $800 a week, or $40,000 a year additional expense that will have to be eliminated with other expenses before this exhibitor will be able to offer motion picture entertainment at a price he did before the war. The advertising in this city costs $7.50 per inch. His advertising expenses last year were in excess of $75,000. Four years ago this item cost about $15,000. “Now is the time for the exhibitor to don the fighter’s uniform. Any sweeping changes to be established will depend upon what the exhibitor does, and when he does it. Pictures will be cheaper to the public when the exhibitor makes them cheaper. The public will buy more seats when these seats are sold at a price that does not inconvenience the public. The savings that are to the effected in production and distribution will come as the results of the exhibitors’ enforcements. Millions of dollars can be saved on salaries for stars, directors, casts and distributing executives, and they will be when you force them to be. It all has to be done. This saving must be multiplied by enforcement of economy in theatre operation. Don’t let orchestrations and prologues overshadow your pictures — too much money is wasted here. Cut — prune — eliminate. Show good pictures, have fair rentals, encourage better production and reduce admissions to a point where you can compete with economic conditions and all other kinds of competition.”