The Film Renter and Moving Picture News (Jan-Feb 1923)

46 THE FILM RENTER & MOVING PICTURE NEWS. February 3, 1923. WHAT IS THE VALUE OF A FILM? LIVERPOOL EXHIBITORS DISCUSS THORNY QUESTION. T the annual meeting of the North-Western Branch of the C.E.A., held on January 23, a resolution passed at a former meeting of the branch concerning the cost of film hire was further considered. The Chairman stated that the question was a very serious one, inasmuch as it was making it very difficult for them to run their halls on a profitable basis. He had invited the president (Alierman E. Trounson) to attend in order that they might have the benefit of hearing his views upon this question, as Alderman Trounson had given the matter very close consideration and attention. ‘* Methods of a Dutch Auction.” Alderman Trounson observed that the resolution which they were met to discuss involved the question of formulating a national solution of this matter, which was so important, and which, also, so vitally concerned them. ‘Personally, he had no grand panacea to offer which would meet. the hundred and one difficulties with which they were faced in endeavouring to conceive a perfect scheme. He had noticed in the most recent edition of THe Firm Renter axnp Movine Picture News that a Liverpool renter, who had been interviewed on the subject by the local correspondent of that publication,-stated that the value of a film was the price which was mutually considered, as between renter and exhibitor, to be the value of the picture. They all knew that this was untrue. The custom was for the renter to start a bargain by the old-fashioned method of Dutch auction until he reached an agreed price, but this agreed price did not necessarily represent the true value of any particular film. The price obtained by the renter depended entirely upon the amount of competition he could create amongst the exhibitors, and it wad well known to them all that in the case of a super-film, and so-called superfilms, many exhibitors, in competition, paid prices for hire which could not possibly leave them any margin of profit. He was of opinion that, however long they discussed the general question, they would have to revert to this phase of the matter. Unfortunately, the film was not a commodity with a national standard value like timber,.iron, or any article of domestic use. Six out of twelve films varied in value. This again brought into play the unpleasant method of bartering. Different attempts had been made to find a solution of this unfortunate state of affairs. Simultaneous Signing. Mr. F. R. Goodwin had produced a seheme during his presidency of the Association, proceeded Alderman Trounson, but after making heroic attempts he failed to carry it further than its initial stages. American exhibitors were now banding themselves into an organisation to produce their own films. How they proposed to deal with the thorny subject of allocating first and second runs in various towns remained to be seen. He had so far suggested nothing as to means by which the present trouble could be minimised. The first thing that occurred to his mind was the simultaneous signing of contracts, which, he was of opinion, would obviate the hawking of filme, to some extent at any rate, and would also prevent the exploiting of offers made by various exhibitors. He had in his possession a document which provided for a combination, say, of the members of the North-Western Branch of the Association, who should hold a meeting weekly for the purpose of fixing the prices of films. The document had been drawn up in proper legal form, but, in his opinion, the scheme proposed was not a workable one. His object in addressing the meeting was not with a view to providing a remedy for the serious and overwhelming increase of charges of film hire from which the exhibiting side of the industry was suffering at the present time, but with a view of suggesting salient points for useful discussion of the question. Should they fail in their endeavours to evolve some workable scheme, he was not without hope that some good would come out of this matter being discussed throughout the country. Uneconomic Prices. Some of the prominent renters had great sympathy with exhibitors in regard to the matter. One particular incideut had come under his notice a few days previously, when a friend of his had negotiated for the hire of a certain film with the representative of a renting house, and the price provisionally fixed was £100. When, however, the renter’s representative returned to his office he telephoned his (the speaker’s) friend stating that he regretted he was unable to confirm the £100, as the film concerned had been booked to an opposition enterprise for £250; and so the matter went on. He hoped the result of that meeting would at least be the means of stiffening the backs of exhibitors against paying uneconomic prices for films. (‘' Hear, hear.’’) He had recently been discussing the subject with a well-known gentleman in the film industry in London, with a view of ascertaining what could be done in a national way for the purpose of enabling exhibitors to secure sufficient films on reasonable terms, and, as the outcome of that conversation, he was not disposed to think that the bulk of exhibitors would always remain in the position in which they found themselves in regard to this matter at preset Cc Hear, hear.’’) The important fact stared them in the face that the prices for film hire were advancing, while, at the same time, there had been a falling-off of at least £7,000,000:in the money spent by the public on entertainments during the ten months from April 1, 1921, to October 1 in the past year. (They had this from the statement of the Chancellor of the Exchequer.) If he had taken a 25 per cent. tax basis, or if he had taken a 20 per cent. basis, then the falling off in receipts was nearer £9,000,000. They could weigh up for themselves the economic results of these two factors. The Crux of the Problem. Mr. Perry (Liverpool) thought the problem was ons which could not be tackled successfully by anyone. When one exhibitor offered £10 for the hire of a certain film, and another exhibitor came along and offered £20 for the same picture, what could they do? The Chairman : together. Mr. Littler (St. Helens), as representing kinemas of smaller size, said it seemed a waste of time to discuss the cost of hiring a film which was rented for £200 and £250. Even in his locality they had been dealing with the question very strongly. There were two halls, and they were strongly competing against each other. The unfortunate thing was that one of the two halle concerned was uot in the C.E.A., while the other was. What generally happened was that if, in the lower scale of picturedrome with regard to size, one man would not pay the £15 asked by the renter, his exhibiting opponent would, and so they went on. In my opinion the thing would be to get (Continued at foot of next column.)