Variety (Jan 1948)

FvHy-teeond AimiverMoty Wednemlay, January 7, 1948 ttemendous domestic grosses and'have proven that the po- tential is large if the quality of product offered that mar- ket is good, i' I helievo that boxoiTice values remain constant. That is, I bolievo that a good pictui-e will make money in any kind of a market. If that picture happens to be about a boy and a girl, or anti-Semitism, or sex, or injustice', or war, or any- 'thing else, it has a boxoffice value if it's a good motion picture. Since I am certain that as competition gets tougher, our pictures will get better, I am equally ccrtiiin that box- . ofl'iee values and cycles will, remain constant,, and that, : picture audiences will be interested in some ol the old, and same of the new dements, provided those are presented in tci'ms of showmatship, taste, and courage. Thoije are tough, angry days we are living at the moment, ttnd Hollywood is not an island unto itself. It reflects the ■world in vrhich 'it lives. If things get tougher in the world, they will be tougher' in our industry. But if statesmen and tiitcrnational leaders create a pattern o£ hope for the future, there will be great hope for us in the industry. „ . So, While I am generally optimistic about our, ability to adjust ourselves to the economic circumstances we face, I recognize that our final hope rests only in a worW of peace, and a world free of tension spd fear. I hope that we Wjll hegin to see this kind of a world beginning with this new year. ■.". ■■ , ■ ■ Skouras'Says Pix Biz Faced With Major Issue ol Gearing Quality Product to a Diminishing Market Spj/W p. Skouras, president of Wth Century-Fox Film, believes: ' '■ AH of us know the film industry facts of life as we go into the year of Our I^ord, Nineteen Hundred and Forty-eight. There is^ot a single responsible person in our business •who does not recognize that an extraordinary dilemma has V f come upon us, primarily because our, foreign income has substantially van- ished... ■ . ■ . ■' ■ .■. Since this blow from cahioad Coin- cides with the return of idomestie grosses to more tioKpaaJ leifels, while production costs are still at ttieir lilgli- est peak, our indtistry is heset by a veritable Pandora's arlssor of yexatibns, vital to its very survival. Our position is unique. Besides hay- ing special crises sup«a;imposed upon our; very greaV- normal-occupational _ _^„_„.« hazards, due to the nature of our busi- 5pyr«s SKOvras suffering from a slump ■While general business is.enjoying prosperity. ■ Yet we carry ];;^poU8ibilities beyond those of most other industries, in- cluding special obligations of a sbciological and educational 6rder and a peculiar sensitivity in matters of national and - international morale. Long after we sell our films com- mercially they are carrying on for better or for worse in the realm of ideas. • So the statesmanship we are called upon to put into prac- ti88*must be ever iealous of the quality of our product while it seeks to make .the adjustments ahd retrenchments that are £0 clearly indicated. ; In indicating, as I will, that i helieve these adjustments »nd economies Stust begin at top levels. I am broaching a subject that niigbt as'vrell now come into the open; Our production-li<^ been geared to an international mar^^ ket. The easy formula has been to get a large part of pur negative Costs back in the domestic market and our profits: from exhibitions abroad. Today, we must make sure of out- survival, regardless «f the foreign market. Looltmg at the situation at home, our peculiar" plight is emphasized. • ,, will be bought at the bo.xoffice. We can cater to an even wider audience if we have both vision and ?i realistic view of our problem. Hal "Wallis Believes in a Balanced Program; Serious Product to Offset 'Escaptist' Pix Hul V/allis hm this to say: Trends: As in the past few years. I think there Will be an effort on the part of most producers to Avoid an unbalanced program. ■ It has been demonstrated, despite the clamor tor ■^escapist" feire that pictures like "Crossfire" and "Gentle- man's Agreement,"'serious "dramatic ef- Jlorts, are doing top business: I think the healthiest situation for all Con- cerned is one in which the widest pes'* sible scope is given to story material so that the public can be offered a com- plete, variety of picture, themes. Costs: Maintaining present- sualitljr despite anticipated, i^i^itig costs 0^ the greatest challenge to the producer today. In any event; igudlifi^ inust not be sacrificed. The answer lies in In- creased efficiency in,operation, careful scripting and an all^Out elimin^itipn ol waste. « ' Boxoffice Outlook: Here I am the eternal optimist, 1 feel that a combination of good product and intensive attractive sales'campaigi:is will keep the b.o. at its present level* And I hope that exhibitors will, aim their exploitation at the mer- chandise at hand, motion pictures, rather than at so-called stimulants such as dishes, bric-a-brac and silverware^ 1 Must Maintain Quality Our one eminent requirement is that we must produce good pictures. Neither at the boxofEice nor in the field of entertainment must ti»ir quality be impaired. -That point is beyond argument. -Despite pur critics, we are ever striv- ing-and the quality 4does rise steadily. Ws vcaist maintain tb's at all isosts. •' - Tfet the problem remains of bringing prodviction costs in line with theatre receipts. These costs are in keeping witb the abnormally high theatre grosses of 1945 and 1846, whereas these theatre grosses have returned to .something like,the, more normal levels of 1941 and 1942 and 1943. In- deed, since Thanltsgiving of 1947 our domestic grosses have been the lowest since 1941. We cannot escape these facts regarding our domestic income. I am referring ioth- to what -has happened and what we must expect. Thus, let me repeat, the body blow from overseas is a terrific one at this time.- At the least, our foreign revenue in th& future will be two^thirds less than what it has been. Ko sensible distributor can possibly expect more than $300,- 000 to'$350,000 in remittances on pictures that • formerly brought in $1,000,000 from the forcifin market. 1 Two 'Musts' We must make good pictures. We must reduce the cost ©f them. These two "musts" mean Spartan measures. They mi'st be taken at once. •' Retrenchment must come in "the area of salaries and wages all alons; 1;he line which are ba-sed on the high grosses of 1945 and 1946. Executives, produoers, directors, stars, writefS, craft workers and others cannot continue to represent a top-heaVy propor.tion of the cost of production. Nor can other production" outlays remain at levels based on the peak years. We cannot dodge these facts. Evade them now and we must face them later anyhow. • So my own advice is that our executives should start at once to bring sub!>tant!al reductions of salaries in the higher brackets, setting' a voluntary example themselves. Once they do so, they will be in a better position to appeal to other creative and artistic people and to work out reduc- tions, with the craft unions. The Exhiiiitors" Obligation I have also said that the exhibitors must contribute their share to this revolutionary readjustment 1 mast repeat'this; too, even though I have -several times broached the sub- ject at meetings of theatre men. Film rentals .must be in- creased to. help provide a flow of good boxollice pictures. If the exhibitors do not recognize that an unprecedented blow has been felt by the whole industry, of which they are a part, and do not take measures to counteract it, "they will suffer too. * AU our efforts, in the last analysis, must be directed toward thainfaitting in the public mind a feeling that our films constitute the best possible entertainment, so that tickets Hal Wallis t J. L. Warner More Creative Enterprise in Production, Selling and Distribution a 'Must' for '48— J. L, Warner • Jack L. Warner, veepee in charge of Warner Bros, produc- tion, feels that: . ■ . ' This coming year must be the creative year in. the motion picture industry. Creative-enterprise must begin in pro- duction and extend throughout selling and exhibition. It .must be good and the public must be convinced that it is good, More than ever before, story pKiperties will be selected and mounted withlitaat single cottsideraitiOn. NO pro- ducer in his right mind is going to try to shine up a hackneyed story or bridge dull spots with flashy interludes. Such tactics fool nobody these days and they waste a lot of money.' It is far more satisfactory to build up'story values. I believe there wiU be ho inarked trend in types of pictures except il^ti' negatively, we will see. fev/ M the ex« eesaively gloomy an«l moody ^^nd, full of neuroses—and audience-frustrations. Such films were not too great a strain on the spirits;©! a nation flushed with victory in a great war and corMssot tlmt everything was going to be dandy from here on. 'Sat ithe nation's mental poise is somewhat more tense these -sdays. I do not suggest that purely escapist fare will be called for. In fact, I feel sure that people want to think, and to have something to think about But X also believe ^hat the patrons want a measure -of reassurance before they leave a theatre. And 1 know they want to feel they have been, entertained. ^ ■ Showmanship had a long vacation during the war. It was little needed. Besides, we had our wartime jobs to do, and the industry built itSeU to greatness with its services for victory. JBut today showmanship has resumed its full importance at the ■ boxoffice. ;Jn fact, it is more important than.jsver. It is absolutely vital. Withoiit any of tile excitement and sustaining force which once carried lis along, we are utterly dependent on hard work, initiative and ingenuity for what- ever progress is to be made. The industry today must deal with the most adult-minded audiences in the history of motion pictures. Not onjy are theatre-goers more show-wise but they are also more value- wise. They are shopping for entertainment. That, is why showmanship is so essential, not only in produstion but in the wholesale and retail seUing of our products. ' • I believe that all existing markifets can be increased con- siderably by better pictures and stronger selling. Pot the ' domestic market, I feel sure that there is almost no limit to potential sales of top entertainment. Yates Sees '48 as the Year of Oarification^Favo^g Rx for Simple Entertainment Only Jtferb-yate*, Republic prexy, tees it this way: The trends of the motion picture industry as a whole depend upon the policies of the individual producing com- panies. Republic productions have run the ^mut from heavy I drama to light musicals but we are particularly proud of our large-scale outdoor action dramas, so representative of the Amer- ican spirit. The appeal .of pictures of this kind has been so well proven, that it might almost be more a&curate to re- fer to then^ as an established and per- manent groundwork" of the industry, rather than a trend. But there is one important trend that I see ahead, and that is toward pictures that have in- tense emotional appeal. The war n^ade violence commonplace. Boxoffice re- . turns indicate that. the gut tier the drama tlie better the audience like it: .We intend to avoid pictvires based on controversial themes,, as well as semi-documentaries, stark tragedies, and stories of so-called political 'significance. Today, people go to theatres primarily to be entertained; not to be preached at, not to be depressed, not to be,,in- strucied in- political ideologies, jk inotion' picture theatre should be a social center for the entire family. Audiences , should leave the- theatres in high and happy, spirits. Let ■the newspapers, books and. other forms>«f topical literature give the people the more-stsriou/s sid6 ot life.. The motion picture must remain a medium of entertainment and pleas- urable diversion. It i» niy feeling that tbe musical pic- ture will re-establish itself with a bang in 1948, Concerning the. boxoffice outlook, I feel that'the piclul<«' theatres, like any other forms of business and'commerce, are inseparably tied in with our n^'^'onal, over-all economic situation. It is a logical sequen a Toi' more jobs to mean ■more ticket .sales at the boxoffice. MOr£ men and women Herl^crt t. Yatei Darryl F.^Zsnnek, gainfully eniplnyed caii only mean more customers. 1 feel that the general business outlool( for 194S is encouraging, Atid speaking of the British fajt, I am one who believes it is a blessing in disguise. It Is an ill wind- indeed that blows no good and this edict, as .oppressive as it is, has served to bring Hollywood to its senses. For the first time since the war much needed economies have been brought into effect which I hope will have a permanent sobering effect on t{ie studios. I am convinced that quality has not been af- , fected and that product will maintain a high level of enter- tainment value at a reduced cost. ■, The loss of the British market has also had its inllucnce in parts of our business other than studios. Distribution has heard the call to arm?; The last full measufe of returns must be drained from,the domestic market in order to make up for the British loss. This calls for more intelligent, ag- gressive and persistent soiling on the part of our sales forces. The exhibitors of America must realize th^it they loo .share in our destinies. Wo cannot" continue to maintain quality and fight, the battle of sky-rocketing costs in picture-mak- ing, unless the exhibitors recognize that problems do exist, that they are- real, pressing and multiple, ' Political upheaval, problematic governments and the threats of Commfinism have hurled themselves against the ramparts of our structural economy, and the lines that pro- tected .us from those evils may have sagged and bent, but they were never broken. I have enough faith in the human race to feel that out of all the confusion in Europe and el.'^c- where, the real people who form the backbone of humanity will fight back, stronger than ever, for their basic riglits of freedom of speccti and religion, and the right to liappine.s.s. If American pictures can—as I have every reason to be- lieve—bring some measure of enjoyment, pleasure and re* laxation to such people, then the pictures, and the thousands of men who help to make them, are indeed a potent factor in the'future happiness of the world. Zanuck Predicts Films Coming of Age,, and '48 As Challenge to Industry's Showmanship Dorryl F, Zanuck v.p. in charge of production at 20ih Century-Fox has his own idea$ o* wltat is on the jlit'm hort'^on. The year 1948 must bring a solution to at least one prob- lem; that of production costs. ' ■ Not until another day of flush prosperity can we expect another boxoffice landslide. Even a drop in the abnormal index of living costs will noti . in my : opinion, bring the public flooding back into the theatres as. they did in the cycle of war years just ended. For -one thing there, is no moi^e rstioninfj of gasoline and c&rs or curtailment of vatious other events which compefe with pictures for .atteitdance. For ah* other tiling, even an adjustment in hish living costs wiH Wot leave the public loaded with the excess' casli : which was the result of premium pay ' for overtime'hours in war worfc So today the motion "picture iiidiistry of Hollywood is faced with a fight for survival. I do not for. a moment ^loulbt we will win this fight. The strategy of battle is plain: increased -efficiency in production and every phase of operation. Internal strife and dissension brought ^bout.by jiu-isdic- lional fights must be settled Once and for all if the industry is completely to clear its decks for proper adjustment to the problem of more efficient and economical operation. Such a settlement would help to rebuild morale and do away with the indifference of the worker toward his-Job. ■ But care must be taken to prevent quality from being sub- ordinated to economy in this critical period. Prodttot on costs absolutely must be brought down, yes, because at the, present excessive level it is futile to produce hit pictures in a market which can only return the cost of making them plus distribution overhead^ leaving no way by which the losses from weaker pictures can be absorbed. But the lower- ing of costs .cannot and must not be -effected arbitr-arily at the expense of entertainment an4 dramatic values. " ■ Therefor^ those who make the pictures are facing a test of their- mettle and abilities. The pillars of the temple of Hollywood will not collapse, but the heads of some of its . Samsqns .are bound to fall. Some high-priced brains and talents will be found wanting and will suffer. The fit and capable, however, will as always retain their place.s-. Besi^Jcs which some new faces will emerge, from the ranks. But one thing will remain unchanged, in fact will be brought into a focus brighter and stronger than ever, I refer - to, that thing upon which the pre-eminen<%! of Hollywood : over all other ccntei's of .film manufacture'depend$-^.show- manshlp I have said this over and over-again throughout the years, "Si^d -I say it this time With even more emphasis. Our appeal is primarily to the. masses, because they have made the motion picture business what it is today, and they still call the turn. What they demand from us—and ate entitled to^is ENTERTAINMENT. ; By entertainment I- do not mean song and dance routines ' or a few laughs alone. There is a new conception of enter* tainment developing in screen drama. The thought proce?scs'^) of the public can be stimulated and shape.d by a film play>! even while it is stimulating the emotions. A fUm play can '' provide diversion and at the same time have something to ■ say about life and its problems. It is a matter of great pir* sonal satisfaction that "Gentleman's Agreement" has demon-* slrated this point; because it was undoubtedly one of the severest of tests. - Thus the new-be^un year will be one of transition in the ' processes of production and the processes of thought. Those are two obligations which Hollywood must surmount. But the problem of readjustment is toot Hollywood's alohc. DistHbutioh and Exhibition are also inseparable links of the film industry. There must be adjustments made in both .these linlcs. It is up to the exhibitor to go along with these,cfi^orts. If we cannot sit back and count the easy profits of the lush years, neither should he. If he is not willing to make some effort or sacrifice to foster production, he will Kuifor ju,sl as much as we do in the long run. The quality of our product, the scope of our efforts, are the determining factors at his turnstile. • If studio operations cannot be maintained, theatres cannot remain in operation. Even though begrudgingly, the exhibitor must concede this vital fact. From past experience he knows that Production and Distribution wants him to prosper; if . adju.<;tments-are necessary for his welfare they are made. This give-and-take attitude must become stronger in this critical new year. And by working together more clqeely, more willingly and more generously, all the link.s of^ the motion picture industry will benefit and be more secur*.