Variety (Aug 1939)

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'2® VARIETY Wednesday, August 30, 1939 ^. i if pr b.,. — J THE MERCHANDISING POLICY FOR WARNER BROSM939.40 SEASON 1. We announced on March 14,1939 that we would release 48 feature pictures, 104 short subjects and 48 trailers. We also stated that "Quality is not a Passing Fashion". Our production performance since this date and the pictures finished and available for release justify that statement and announcement. 2* An exhibitor who licenses all feature motion pictures offered shall have the right, if he be not in default, to eliminate proportionately among the several price brackets, 20% of the total number of fea- tures licensed, if the average of the license fees for all features shall not exceed $100., and 10% if such average is in excess of $100. 3a We confirm our policy of long standing of allowing an exhibitor to eliminate any feature which may be locally offensive on moral, religious or racial grounds. 4a We expect all top bracket pictures to be played on preferred playing time. 5a We will license a run designated by us of our features in any situation to any exhibitor of good reputation as a theatre operator and customer, whose theatre is in good condition and who operates under a policy which will not substantially reduce our revenue from any other run, provided such exhibitor and we can agree upon the number of features to be licensed, and other terms and conditions. 6a We corifiiro our policy oribng standing and our~intent to continue to license our pictures to our regular customers who prove to be satisfactory. 7a No exhibitor will be required to license short subjects, trailers or reissues as a condition of licens- ing features. 8a No recording charge will be made in connection with the licensing of any of our feature pictures. 9b To assist in the booking problems of our customers, and for the mutual benefit of our customers and ourselves, it is our intention to hold a number of test exhibitions of pictures in order fairly to establish their proper price bracket allocation, and we will allocate features to particular price brackets not later than 14 days after the national release date thereof, to first run exhibitors in those cities which we may use as "Test Cities" and to all others, on giving notice of the availability of each feature. 10a We have never at any time coerced or intimidated any exhibitor to license our pictures by threatening to build or otherwise acquire a competing theatre, and we will never do so. It is our belief that the quality of our pictures and the high standard of our production create a demand for dUr pictures. 11b For over five years it has been our policy to arbitrate with any customer desiring so to do, all claims and controversies which may arise under our license agreements, and our form of license agreement contained an optional arbitration provision. We will continue to give to each of our cus- tomers the option to arbitrate all such claims and controversies. 12a Clearance is an absolute necessity in the conduct of our business and we therefore intend to con- tinue our policy to negotiate with each of our customers for clearance reasonable as to time and area. This policy will apply for the motion picture season 1939-40 and to all license agreements covering the 1939-40 products made after Jan. 1,1939. Distributor of Warner Bros, and First National Featuro Pictures and Vttaphone Short Sub|e«ts J President, VITAGRAPH, INC.