Motion Picture News (Oct-Dec 1929)

12 Motion Picture News December 7, 1929 Theatre Attendance Up 15%; Sound Sends All Costs Soaring, Hays Says Production Costs Up 22 1-2% With More On Way; Distribution 141-3; Theatre Operation 14 3-4, He Tells Conference Washington. — Attendance in theatres today as against a year ago has increased 15,000,000 a week, or approximately 15 per cent ; 1929 production costs have increased 22.50 per cent over 1928 and the first six months of 1930 will witness a further increase of 15.25 per cent as against the same period of 1928, Will H. Hays declared at the national business conference held here Thursday under auspices of the United States Chamber of Commerce. . Hays spoke before nationally-known business leaders, pointing out how largely the industry figures in the set-up of the country's economic structure. The conference, called for the purpose of devising methods of maintaining the confidence of the public in the nation's commercial future, erpected to learn what the film industry was doing by way of increasing budgets and outlays of money for expansion. Hays supplied the information. All of his figures proved to be increases. His data demonstrated clearly that while attendance had increased 15,000,000 weekly, operating costs were also on the rise and would continue to be. Russian Film Held Up Baltimore. — Second decision of state censors regarding "Village of Sin," is awaited by the Little Theatre, which was scheduled to show the Russian film this week. Industry Expansion As Seen By Hays Washington. — Text of the Hays report to the national business conference of the United States Chamber of Commerce: The attendance in motion picture theatres today as compared with one year ago has increased 15,000,000 per week, or approximately 15 per cent. Earlier in the year, when we began to lay plans for the 1939 expansion, with which we shall steadily proceed, we had estimated that the 1929 audience increase would be 10,000,000 weekly; the facts are 5,000.000 better than we had expected. There has been an increase in 1929 over 1928 in our capital investment of approximately 20 per cent made necessary by normal expansion and the further preparation for the production of sound pictures and the elaboration of the facilities for their reproduction. This includes the amusement field and also the preparation for expansion in the production of pedagogic scientific and religious pictures. In the entertainment field alone our exchanges in the United States handle 25,000 miles of film every day. To conduct the normal operation and to meet the new conditions necessitated by sound and to maintain the changed condition, the number of employees today as compared to this time last year has increased 2614 per cent in production, 9 per cent in distribution and lljjj per cent in theatre operation. The total expenditure in 1929 over 1928 on account of production has increased 22H per cent, for distribution 14 1/3 per cent and for theatre operation 14?4 per cent. In each instance a considerable proportion of this increase is an increased aggregate of wages. 60J4 per cent more was spent in 1929 than in 1928 for theatre construction and purchases; in alteration and repairs to theaters 29 per cent more this year than last. The expenditures for advertising and exploitation increased in 1929 over 1928 by \2'/t per cent in production, 43 1/3 per cent in distribution, 1714 per cent in theatre operation. The plans for the first six months of 1930, compared with the first six months of 1929, provide an increase in the number of employees in production of 8'4 per cent, in distribution 5H per cent and in theatre operation 1% per cent. There will be an increase of 1 5 ', 4 per cent in the total expenditures on account of production in the first six months of 1930 as compared with the same period of 1929, in distribution an increase of 3 4/5 per cent, and in theatre operation 1 -is per cent. Again in all three of these branches there will be an aggregate wage increase, amounting in the case of production to 25 '4 per cent. Alteration and repairs to theatres will increase 10}£ per cent in the first six months of 1930 over the like period in 1929; and the addition, betterment and repairs to studios and studio equipment will increase life per cent. Theatre construction and purchases will not proportionately increase. Plans for the first six months of 1930 call for an increase in exploitation expenditures over the like period in 1929 of 17 4/5 per cent in the studios, 17'/2 per cent in distribution, and 3H per cent in theatre operation. Because the increased production of the quality sound pictures of the last six months will be in circulation in the first half of 1930, there will be a still further substantial increase in the attendance. This increase in attendance and the increase in production are both significant, not only as a measure of this industry's progress but in relation to the film's value as the sales instrumentality for all other American manufactured products. Nation's Leaders See Bright Future "Washington. — Delegates to the United States Chamber of Commerce conference, called at the request of President Hoover to consider means of averting business depression as a result of the recent stock market deflation, are generally optimistic over the outlook for the coming winter, reports indicating clearly that basic conditions throughout the country are sound. The conference was in session all of Thursday, the morning being devoted to. addresses by Hoover, high government officials and officers of the chamber, while the afternoon was devoted to reports from industrial leaders as to the outlook in their particular fields. Investment In The Industry Up 20% Washington. — Capital investment in the industry increased 20 per cent in 1929 over 192S. This was made necessary by normal expansion plans and by way of further preparation for sound production and reproduction. Will H. Hays presented this fact as part of a statistical analysis covering activities in the industry to the national business conferences held on Thursday by the United States Chamber of Commerce. The figure, he added, included preparation for "expansion in the production of pedagogic, scientific and religious pictures." Prosperity Reflected By Theatre Trade, Says Katz Commenting upon prosperity of theatre trade in general following the stock market crash and stating that the Hoover business conferences at Washington are already effective to a marked degree, Sam Katz, president of Publix Theatres, declares: "The 110.000.000 people in the United States apparently arc untouched by the stock market crash, or it would have been severely and instantly reflected in our 1,200 theatres. .We expected the largest gross box-office receipts of the year, during the month of December, but from present indications, it appears that our anticipated figures will be greatly exceeded." Klein At Trade Confab Edward L. Klein attended Herbert Hoover's special conference of executives of trade associations and leading business men at the National Chamber of Commerce headquarters in Washington, on Thursday. Klein attended as president of the A. M. P. A. New Record At Providence Providence. — The Victory will hold "RioRita" over for a fourth week, setting a long-run record for this city.