Showmen's Trade Review (Jan-Mar 1947)

SHOWMEN'S TRADE REVIEW. January 4, 1947 9 NATIONAL NEWSREEL Admission Tax Drops to 10% July! The federal amusement tax of 20 per cent will automatically drop to its pre-war level of 10 per cent on July 1 as the result of President Truman's decision Tuesday to declare an official end to the war, The 20 per cent admission levy was enacted with a clause specifying that it drop back to its former rate six months after the official end of hostilities. 1947 Product Shortage Threat Brings Few Policy Changes Exhibitors in Northwest Optimistic Ovei Outlook Optimism about business in 1947 is the keynote of the northwest. Exhibitors and the men along film row both unanimously agree that the prospects for the early part of the coming year are bright and they anticipate a rise of at least 25 per cent in business. Their sunny outlook, however, is confined to the first six months of the new year, and many believe that the second six months will not be so good and possibly will drop slightly. Film men base their opinion on certain definitive factors which point to prosperity for the first half. They are : A heavy demand for lumber to finish numerous factories and homes, increased acreage being put to use for agricultural products, large wheat shipments from inland points to Columbia River ports, and an almost continuous line of ships carrying products to foreign ports. All of this indicates increased earnings and theatres which go in for showmanship are certain to get their share of the amusement dollar. Equipment men will share in this prosperity also from all indications. Extensive plans are now under way for numerous drive-in theatres in many key centers of Oregon and Washington. Following the first six months though, a slight recession is expected, which will be assisted by the warmer months with their competition from outdoor attractions. Some theatremen noting a tendency of the area to move to Oregon coast summer resorts, are said to have plans for increasing the theatres in this area. Predicts Banner Business In New Orleans, Gulf Area Banner business was predicted for New Orleans and the Gulf States area this week as the New Orleans Association of Commerce announced that a strong year of business and industrial development was anticipated, providing that there are no strikes. This business trend will be reflected at the box-office, according to local estimate. The Chamber's report shows that in New Orleans alone there are an impressive number of new enterprises moving in, that building will be at its peak and that retail sales, which have surpassed anything in the previous year, now show signs of letting up. Increase in agricultural production, an important factor in this predominantly agricultural Gulf area, is also expected to be felt throughout the territory. Showmen will probably welcome the indications of a steady business to offset the slump which ranged from 20 to 40 per cent and which has been felt throughout the territory. November in Tax Drop November amusement admission taxes for 1946 were $36,393,291.59, a total which fell short by $1,619.37 of November 1945's total of $36,394,910.96, the latest figures from the Internal Revenue Department in Washington revealed this week. However, figures for the period of July to November, 1946, reached a total of $203,336,227.10 or $28,340,416.30 more than the same period in 1945 when the total was $174,995,810.80. Single-Selling Tends to Restrict Film Market; Reissues Often Preferred The motion picture industry entered the new year with a threat of product sthortage hanging swordwise over its head, but with few cases wherein such shortage had caused radical changes in house policies by way of giving films longer running time in subsequent-runs or cutting down the number of changes in a week. While the situation at first glance appeared optimistic, a survey conducted by the correspondents of Showmen's Trade Review shows that product, or the lack of it in the future, is the subject uppermost in the exhibitor's mind. This, with a noticeable use of reissues and the fact that some houses are booking from independent exchanges whose product they would not have touched in the past at rentals which in different days they would have described as fantastic, are probably the most indicative tipoff of what may be in the cards. Coupled with this is the sign that there is no apparent indication that extended first-runs will let up or that there will be any faster release rates from the major distributors in the near future. Film Market Restricted The majors have found selling few pictures at a time to be good business for them. This, together with a tendency to wait and see what the decree says and how it will work out, has a tendency to restrict the film market. The strike in Hollywood, which has definitely slowed (See the News Spotlight) Public interest in facts and information will lead to the increasing popularity of the factual short subject during the present year, March of Time chief Richard de Rochemont said in New York this week. "After the one-reel cartoon," de Rochemont claimed, "the factual short is the most popular short. Both of these have outstepped the musical short and the two-reel comedy." De Rochemont found that shorts had increased their audience demand during the past year but continued to run up against difficulties in booking. Among these, he said, were long features. "Singlefeature programs are definitely better for shorts," the March of Time head declared. "The real difficulty is one where a very long first feature is on the same program with a normal-length second feature." production is only a slight factor, since there is enough product in the vaults to take care of such contingencies. As a general rule exhibitors seem to prefer to book reissues which look like a sure thing than to try to build up a weak sister to hold down a regular run. First-runs for the most part seem inclined to hold a picture if the public shows the least amount of enthusiasm for it. Notice Changes Specifically, some territories have noticed slight changes. In Columbus films are getting played off at a slightly faster rate than they did a year ago, with somewhat fewer holdovers. But the main reason for quicker playing off is in changed clearance by which neighborhoods now get bookings on their normal clearances after the first week of an extended downtown run has helped the neighborhood situation. Formerly several companies established clearances dating from the last week of a holdover rather than the first. Reissues are being played in increasing numbers, but so far there has been no actual shortage. Extended runs in neighborhoods have been rather rare, with such extensions being dependent on how well the picture does rather than any other cause. No houses have been closed here due to any product shortage. Harrisburg, Pa., reports : While the downtown houses and neighborhoods alike find new pictures increasingly hard to come by, due principally to the strikes in Hollywood and the general shortage, to date no (Continued on Page 20) Another difficulty, he continued, lay in the fact that it has not been necessary in the past to book shorts due to the heavy business most theatres were having and that by eliminating short subjects, the exhibitor could crowd in other shows. He believes a tightened theatre business will lead to balanced bookings. "We're holding our own," he added, "and making more progress in our bookings. . . . Public acceptance seems to be very high. I hope the quality of shorts will be kept up." The less pleasant side of the picture he finds is increased production costs. While, he said, they are not as great in the shorts field as they are for features, they have advanced mightily while the income from shorts rentals for the most part remained fixed. Exhibitors must, he claimed, accept the fact that their shorts must cost them more. If they do so, 1947 will be a good period for shorts. De Rochemont Predicts Increasing Popularity for Factual Shorts