Showmen's Trade Review (1945)

32 SHOW MEN'S TRADE REVIEW October 20, 1945 Building !s PI armed By Canadian Circuits Goldwyn Snubs Subsequents Subsequent-run bookings mean nothing to Samuel Goldwyn, according to a statement by the producer in New York this week to trade press representatives. Goldwyn said that if he can get bookings on his pictures in 50 top first-run theatres with seating capacities of from 1200 to 1400, he would be willing to forego all subsequent-run bookings. Goldwyn conceded that subsequent runs are necessary so as many people as possible can see the pictures, but so far as domestic gross on his pictures is concerned he considers the follow-up bookings economically unattractive because, he said, the cost of selling and servicing them makes them unprofitable for the producer. The Goldwyn philosophy regarding subsequent runs followed his remarks about the high cost of distribution. Asked if he intended to distribute through other channels than RKO when his contract with the distribution company expires next July, Goldwyn launched into a discussion of distribution in general, said it is "antiquated" and has failed to keep pace with progress in production. He declared that too many people are employed in selling and in trying to get the pictures shown after they are sold. Seventy per cent of the total domestic revenue on his pictures comes from first runs, Goldwyn said. Goldwyn Ideas on Subsequents Faulty; Policy Would Harm Industry, Distribution Men Ssy Film executives who were queried this week by Showmen's Trade Review, pooh-poohed Sam Goldwyn's contention that he derives 70 per cent of his domestic gross on 50 top first-runs and can afford to pass up subsequent run bookings. Goldwyn's statement that distribution was "antiquated" and that it cost more to sell subsequent bookings than they are worth to the producer, was made during an interview with trade press representatives at the RKO home offices in New York this week. The producer's statement brought the rejoinder from one distribution executive that "Sam doesn't know what he's talking about." And to back up his refutation of Goldwyn's claim, the executive cited the following figures : "Goldwvn's 'Wonder Man' will have run up a total attendance of say 900,000 to 930,000 when it has completed its 20-weeks' New York run at the Astor the end of this month. According to Goldwyn, he should then have about 70 per cent of his total revenue on 'Wonder Man' for the area. However, let us take a picture that plays 10 weeks at Radio City Music Hall, a much larger theatre than the Astor, and in which pictures (one, at least) have played to over 1,450,000 admissions. In attendance, that represents about one-third of the final total for the picture in the area, while in dollar terms it represents about 50 per cent of the final gross. Goldwyn says that, given 50 top houses throughout the nation with seating capacities of 1200 to 1400, he would willingly abandon subsequent bookings. If he means 50 Radio City Music Halls, he might be correct, but even then his product would have to hold up to 10 and 20 week runs in air of them. (Incidentally, if Sam owned a good proportion of those theatres — as he'd have to in order to be assured bookings in them for his pictures — Goldwyn would be making so much money out of exhibition that he probably wouldn't even look at the production business.) "Using 'Wonder Man's' 20-week engagement on Broadway as a comparison, the picture should play to 3,000,000 to 5,000,000 people over and above the 900,000 admissions at the Astor when 'Wonder Man' plays its circuit bookings for Metropolitan New York. This will gross Goldwyn at least the same amount of money he receives from the Astor booking. Can he afford to throw away 50 per cent of his revenue? Over the country the figures are even higher. "Some pictures have played in over 16,800 theatres. A large group of theatres in New York alone play to more than 1,000,000 admissions weekly, which means 52,000,000 admissions plus, annually from these houses." According to a circuit executive, "the industry would suffer immeasurably if Goldwyn's fantastic theory was applied, and the masses of people seeking and now enjoying motion pictures necessarily denied that opportunity. Gold wyn is forgetting that the man who is paying him a dollar and more for his films at the Astor got the habit of going to films as a boy in neighborhood theatres where he could see the picture for 10 and 15 cents. Lose that public and you lose the future theatre-goer." Daff Tells Australian Meet of Universal Plans via Telephone The initial telephone call to Australia outside of Government calls since the termination of the war, and the first time a conversation was broadcast over a loud speaker 12,000 miles away, was held from New York to Sydney this week between Al Daff, Universal International vicepresident, and members of Universai's Australian staff. The occasion was the opening of the Sydney convention with Here Mclntyre, managing director, presiding. Daff spoke for 15 minutes and a photograph of him at the phone was transmitted by radio to Australia and received while the convention was in progress. Daff told the meeting of Universai's plans for the forthcoming season. Beauty Treatment for Statue The Statue of Liberty in Times Square, erected by the War Activities Committee of the industry during the Sixth War Loan drive, will be refurbished, painted and have a newpublic address system for the coming Victory Loan drive, it has been announced by the War Finance Committee. Work has already started on giving the Lady a face-lifting. MGM's Third Novel Contest Soon Announcement of a third annual MGM novel award contest will be made soon, Yoldemar Yetlugin, studio executive has stated. In the two prior contests MGM selected "Green Dolphin Street" and "Before the Sun Goes Down" as prize winners. The winner receives $125,000 with a further $50,000 contingent on book sales. Contest is under the supervision of Allen Marple, home office executive. Snores Spoil Show Love for the movies brought about the divorce of a Detroit couple recently. The wife told the judge she liked movies and always accompanied her husband, but that she just couldn't stand his snoring during the performance. Divorce granted. From the maze of postwar plans by major Canadian business, those of the theatre industry are among the foremost to emerge and take practical shape as competitive trade again becomes an incentive and the "golden apples" nurtured by swollen wartime purchasing power wither in the transition to. a peacetime economy. As the steamroller begins to roll, two of the industries' leaders there have stated their plans and policies. Summing up, J. J. Fitzgibbons, president of Famous Players Canadian Corp., has stated his company's stand. "After a long and careful study," he said, "we have decided to base our postwar rehabilitation and expansion program on 1940 gross revenue figures. This would mean a gross revenue for Canada approximately 25 per cent down from 1944 but 13 per cent up from' the last pre-war year of 1938. It would also mean increasing the number of theatres from the present 1298 to around 1500." In other words, F.P.C.C. plans for future trade at a figure not less than that realized in 1940. According to Odeon Theatres' executive, building will be pushed to the fore. An official painted the company's picture thus : "Odeon will stress novel theatre design, yet simplicity will be the keynote. Our theatres will look like theatres and not outdated castles or made-over stores." The company's "pet" will be the 2300-seat auditorium and head office situated in Toronto, which the official said "will be our show place not only for Canada but for the British Empire." Here, auxiliary lighting will be one of the main factors and is planned for the highly illusory effect. In its actual theatre changes F.P.C.C, plans radical moves in all its major houses with renovations of many natures to be effected. Odeon will continue to buy up sites and stress the building angle while at the same time changing over most of the smaller theatres taken over since the company came into greater prominence. Sixteen first-run houses will rise on sites already bought by Famous Players, the cost to run, the company says, to $3,500,000 adding seating capacity of 20,000 to its present holdings. The company has already contracted for 100,000 new seats at an average cost of $12 each, half this number to be of the push-back variety. The country's theatremen move into this era well prepared, with no great funded debt commitments and its capital position at its highest level in history. In 1944 the industry reached an all-time boxoffice high of $66,700,000 but it took a wartime wage jump of 70 per cent to achieve the figure. It is with an eye to the expected drop here that F.P.C.C. has not aimed too high. Looking, perhaps, a little further ahead, telev'sion, still in the back stretch, will move out in front. When it does, the prediction is that it will make its first appearance in Canada in southern Ontario, being piped in through Buffalo and across the border. No substantial jack-up in admission is seen and should other amusements cut into the trade, theatremen figure they can trim costs sufficiently without bringing about a deterioration in services to the public. D. J. Phillips Rejoins Paramount As Shorts Ad, Publicity Head D. John Phillips, who was recently discharged from Officer Candidate School, Army Air Forces, has rejoined Paramount Pictures in his former capacity as advertising and publicity manager of Paramount short subjects and newsreel departments. George Harvey, who replaced Phillips during his leave of absence, remains with Paramount. I