The New York State Exhibitor (1933)

4 THE NEW YORK STATE EXHIBITOR The New York State EXHIBITOR Issued on the Tenth and Twenty-fifth by Jay Emanuel Publications. Inc. 219 North Broad Street, Philadelphia, Pa. 1600 Broadway, New York City Washington, D. C. Jay Emanuel Publisher Paul Greenhalgh Herbert M. Miller Advertising Manager Managing Editor Circulating in New York State and Northern New Jersey. Subscription: #2.00 for one year; #3.00 for two years. Publishers also of THE EXHIBITOR, of Philadelphia, and THE NATIONAL EXHIBITOR. Official organ of the Motion Picture Theatre Owners of Buffalo Zone. All editorial and business communications should be addressed to the Phila¬ delphia office. Vol. 5, No. 10 January 25, 1933 Price Cuts . . . Why? HE industry is now gazing at the odd and pro¬ voking picture of the theatre affiliate of a producing company savagely slashing prices while the distributing division is up in arms at the growth of ten and fifteen-cent houses in various parts of the country. Actually, Loew is advocating a 25 cent admission in its first runs in Providence and Kansas City. Metro-Goldwyn-Mayer, with its percentage engagements certain to be affected by the growth of 10-15 cent admissions, can hardly look with any delight upon that practice. The question naturally arises: Where will it all end? Thanks to United Artists and its courageous and level-headed sales manager, A1 Lichtman, the Loew ex¬ periment was delayed because he refused to allow some of the crack U-A product to be used. How, it must be asked, can a price slashing policy be justified when it is an admitted fact that the good pic¬ tures are doing good business and always have, even in the worst depression? How do theatre departments think the distributors will live when merchandise is sold at such a cheap price? Nothing that is valued at a low price can retain its prestige with the buyer. Why, then, sell motion pictures that way? Naturally, if there is an especially competitive situa¬ tion and a temporary slash will relieve the matter until all concerned get together for their own good, price cut¬ ting might be excused, but, unfortunately, much of the current slashing seems to be the frantic methods of a lot of gentlemen who want to do everything except give back their theatres to the independents. Paramount, which was considered the outstanding in theatre operators, wisely, has admitted defeat of its huge chain policy, is turning back the units to independents in order that the company, the operators arid the distribu¬ tors will benefit. There still remain, however, some or¬ ganizations who, either because of desire to retain jobs for a favored few, or because of other reasons, have not yet seen the light. Price cutting does not solve the question of bad busi¬ ness. For a while the industry turned to Hollywood, said extravagance and its remedy represented the problem of the trade. Now, in price cutting, theatre executives seek another tonic. The public is ever ready to pay its price for entertain¬ ment of the calibre of “The Big Broadcast,” “I’m a Fugi¬ tive,” “Back Street,” etc., and the box office shows it. But will the public, intrigued by a cheaper admission, go to see some of the mediocre pictures if the tariff is lower? The odds are that it will not. It cannot be denied, of course, that the buying power of the public is at a low ebb. If increased turnover were a matter of cheaper admissions, then, certainly, price cuts would be in order. But it is not. The motion picture public has learned one great les¬ son from the depression — the shopping urge. Everyone feels it, stores and theatres alike. If merchandise is a buy at a certain price, the public will flock to it. If it is not, the buyers stay away. And how about the exhibitor? It is silly to think that there will be a flock of adjustments this season, but when the new buying period rolls around the distributor will get a smaller return. Exhibitors, knowing what they can gross, will refuse to buy at current levels with reduced admission prices. With the distributor realizing his gross will slip, the producer will cut down on calibre of product. The cycle turns and, in the long run, this business will find itself with a low type product for a low admission. Price cutting is an evil which develops other evils. All sorts of merchandise give-aways, long programs — all these come from the mother cancer. Ten cent houses, started by people who have no desire to help the industry lift itself from its present fallen state, are growing rapidly. Bootleg operations, truly, they are a menace, a parasite that this business can do well without. All these evils come from cut prices. Strange, too, that the blame for the slashes must be laid on the big companies. Truly, it is a pity that short¬ sightedness continues o major fault of the industry. Palm to Warners HEN some of the Allied directors assembled recently and decided that in their opinion Warners-First National was delivering the best box-office product, they repeated something that exhibitors all over had been feeling lately. Certainly, too, the bow to Warners-First National is an evidence of what some sane thinking on the part of motion picture executives can accomplish. Early in the sound era, the same company had little good will from exhibitors because of its monopolistic tactics. Rapidly, conditions approached a point where exhibitors were loud in their outcry against such methods. Then came the change. Evidently the company’s leaders saw the light and a new deal for exhibitors was in store. When the palm is handed to Warners-First National it is more than an evidence of merit, it is an admission by a great body of exhibitors that good will does ac¬ complish results. Zukor Returns A LEADER returns to his former glory. Adolph Zukor again becomes the chief in command of Paramount. Indeed, this is a healthy sign, an indication that the men who have suffered with the industry, who have grown with it, attended its labor pains, will continue to take care of it in time of need. Everywhere exhibitors are commending Zukor’s re¬ turn. It is a silver lining at a time when bright spots have become rare.