Showmen's Trade Review (Jan-Mar 1947)

SHOWMEN S TRADE REVIEW, February 8, 19 :7 7 Whats the Answer? It is our honest opinion that the friction between theatres and Confidential Reports could be greatly reduced if not entirely eliminated were there some common-sense business judgment put into practice. Complaints are rampant that protests addressed to Confidential Reports by exhibitors and exhibitor organizations are ignored, bring no responding acknowledgement. Whether this is due to inefficiency in the field offices or at headquarters of the company we don't profess to know, or even to care. But wherever the fault lies, someone had better get businesslike and pay attention to complaints communicated to CRI by individuals or organization officials in the exhibition field. We are sufficiently familiar with the checking situation to know that CRI is not entirely wrong in all of its methods of operation. But nothing is gained by failure to observe common courtesies of correspondence. It looks as though Confidential Reports is in need of an Exhibitor Relations Man. Nothing makes a guy madder than to be ignored. Good Judgment Many sources are criticizing moves by several major companies to reduce production costs. These sources claim that it is pessimistic and creating an impression that a depression or recession is on the way. Perhaps too much publicity emphasis has been placed upon this expense-cutting campaign and its relation to general business conditions. Nevertheless, we think it is good, common, horse sense to look ahead and realize that the fantastic grosses of the boom years will not continue indefinitely. We do not agree that our industry is going to suffer any setback other than the perfectly normal levelling off that this or any other business must expect. But it is wishful thinking to believe that those boxcar figures are going to continue for any great length of time. Production costs have mounted at a rate that is enough to give any company head the jitters. If he knows his business and wants to protect his company and its stockholders, he must take every possible precaution against a general decline in gross. Theatremen, too, must take the same attitude. Their operating costs, entirely aside from film costs, have risen year after year until they are operating at a terrific overhead as compared with pre-war years. Unless they start to trim ship and cut expenses, falling off in attendance will find them either in the red or close enough thereto to give their cheeks a ruddy glow. The toughest job of all (especially for the independent exhibitor) will be to reduce his film rental costs if, as, and when it is necessary. Distribution executives who believe they will be able to maintain present price levels from the subsequent-runs are either kidding themselves or playing ostrich. Business, like water, always finds its own level. When receipts are high and profits are big, exhibitors are not inclined to get too tough in making picture deals. But when those profits start dropping, they must cut their overhead and film rental costs or find themselves giving up yesteryear's profits and the latter they will fight to the death to avoid. No one wants to circulate rumors about depressions or recessions, but everybody wants to operate his business in accordance with sensible business methods and that can only mean keeping the income above the outgo. If you know of any better way to achieve this than through cutting the overhead, please write and tell us about it so we can pass the pearl of wisdom along to your brother theatremen. Attention Hollywood S. J. Gregory, head of the Alliance Circuit, passes this along from Ted Kraft, manager of their Orpheum Theatre in Terre Haute, Ind.: "We played 'Wide Open Faces' — an old production — for a three-day run. I noticed something in this picture that is missing in most current comedy dramas. The reaction of the audience to the slapstick comedy situations were spontaneous, and there were plenty of good belly laughs, which are missing in the newer pictures. The trend of comedy in recent years is changing, but apparently the public's sense of humor has not caught up with the modern trend. It seems that the people have not changed as much as the pictures have. I believe that a few pictures a year of the slapstick belly-laugh variety would do much to attract new and latent patronage." —"CHICK" LEWIS