Variety (December 1950)

Wednesday, D<^inber 27, 1950 PICnjBBS EARNINGS BOOM Studies by major distribs of gross f,rrui’cs from TV and nomTV areas in the past few months indicate biz is down an extra 10% in locales r.'fu’hed by tele. B.o. is reportedly oiT about 20^0 from 1946 in the territories not yet served by video stations v as against : 30% in tele ^^Tliese figures are the result of ahal\sis by statistically-mirided of two major companies. They reiulo both the ideas (1) that, icle^js having little -if any effect: oil bo. or (2) that it is murdering ■film. biz. ■ .: ^ ... ' The eoinpanies have, of course, been watcliing the effect Of video on grosses for a long time. While few execs doubted that the new iiu‘(Jlitinv \vas talcing its toll, , it has only l)ocn in the past four to six months that a valid statistical cor- relation has appeared. Ileretoforo. comparisons of gross figures in TV and hon-TV terri- tarios revealed no pattern that' showed biz in the former was worse , than the latter. That led, as a matr/ ter of fact, to a remark by Metro sales chief William F. Rodgers that 1 was widely quoted in the trade: '•There’s no television In Hawaii,” meaning that biz there is just as ' bad as iii TV territories. I A \vhole complex of causes is ' ascribed by major company an- 1 alysts for the 20%-off biz, aside ; froin tele: economic factors, atti-; ludes toward films and a lot of i Ollier things on which no one can place a specific finger. i In general, the correlation be- tween film grosses and TV competi- i lion is disclosed by the fact that , the b.o. is holdin^ up best. in the I soulh. That’s where tele is least; developed. Gii the Other hand’, biz is at its worst in those areas with ! a heavy concehtratioh of TV. They [ are New York, Philadelphia, Bps- 1 ton, Los Angeles and Chicago. Fear That Film Stars May Flub TV Shots Also Figures in Studio Bans Fact that some film stars might appear , ludicrous on television through inability to memorize lines, or to ad lib a sustained con- versation, is another reason for the major studios’ ban against their contract players appearing on TV. According to a major studio exec, tile risk of such a star completely dispelling the “glamor” built around him via years of costly pro- motion makes the move to TV out of the question at this time. With video gaining Steadily in importance as a film promotion medium, exec said, the ban must eyenliially be lifted. Before that can be done, though* he averred, it will probably be necessary for each studio to set an exec or panel Cl cUscriminating execs to deter- mine which stars have the talents neces.sary for video appearances and which have not. With the many other problems currently con 1 rPnliiig the studios, he ppinted ciU, the majors think TV so far is not worth the time and money that ^ Av- beCessarily be expepded. . Without mentioning names, the _xec declared that most stars are ^ judge for them- 'Vbuld. appea on agents, he noted, also yiinot be counted on to be dis- ; ^Lniinaiing. Max Shulmaii Hat Aufheriid a Satirical Show Business Short Story The Public Servant ft ' ,. Sf Ah Interesting Byline Piece in the . forthcoming 45th Anniversary yiimhet of P^niETY ■ OUT mXT 'W.EEK Although his first film produced especially for television has al- ready been completed and broad- ca.st, indie film financier N. Peter Rathvon still is not certain how vidpix producers are to derive their profits. Rathvon declared this week that the question of who retains subsidiary rights to the picture is still unsettled and must how be worked out through nego- tiations with the various parties in- volved. And, it’s generally com ceded that at this stage of video’s growth, : it’s the second and third run showings of vidpix that pro- vide the profits. Rathyon’s film is “The Pharma- cist’s Mate,” aired as part of ABC- TV’s “Pulitzer Prize Playhouse” series Friday night (22b Film was considered good enough (see re- view in this section) to bring up the question of whether Rathvon might be contemplating theatrical release for it. He emphasized, however, that he had produced it specifically for video purposes and that the possibility of theatrical distribution is strictly “secondary.’* He pointed out that the questiop of subsidiary rights must be nego- tiated with Schlitz Brewers, spon- sors of “Pulitzer”; Columbia U., through which the Pulitzer tiein (Continues on page 14) .Earnings for the seven major I film conipanies in 1950, wbiile well below half what they were in the peak year of 1946, are almost three times what they were in 1940. They are about equal to net profits of the 1929 boom era. Prospects of the seven majors for the year that draws to an end this week are for composite earn- ings about slightly over $50,000,000. In 1940 they were $19,000,000, in 1935 $16,000,000, and in 1930 (par- tially fepreseriting income from 1929) $51,00,000. Gross income for the companies j declined during 1950 about 12,% jfrom the top year of 1947. It is now not quite twice as much as it was in 1940; something oyer twice as big at 1935 and about 1% times its 1929-30 scale. The 1950 gross will .be about $836*000,000 for the seven com- panies. This compares with $954,- 000,000 peak of 1947 and $488,000,- 000 in 1940; $401,000,000 in 1935 and about $500,000,000 in 1929-30. Companies .included in the tabu lation by Variety include Metro, Paramount, 20th-Fox, Warner Bros., RKO, Columbia and Universal. Not included of the majors is United Artists, , which, being . privately owned, does not issue financial re- ports. Adjustments have been made in the count for such corpo- rate changes as the split of the old Paramount company into two new firms, Paramount arid United Par- amount Theatres, Earnings per share of stock out- standing—an index to how the com- panies are doing for their stock- holders—in 1950 oh a composite (Continued on page 16) 2 ^ Chicago, Dec. 26. ^ Katz circuit, riding lu n ibe Xmas attendance ri l l?’ "‘‘y® ^'^^PPened two of its five theatres. They are i f,,, 0-seat Iris and 871-seat tinn'*' were darkened about ICC weeks ago because of the f. boighborhood biz drop. an.J circuit veepee, •niounced that the re-lighting til'll 1 bo an experiment, -and Uif p*iiay darken again after b'l'rL I' if business down. Schary Reveals Metro’s Hypoed Prod. Activities; Contracts Flu in Gotham Metro production veepee Dore Schary contracted flu enroute to New York from the Coast last week, and as a result he has been con- fined to his hotel. He hks been forced to delay his scheduled con- fabs at the homeoffice with Loew’s preXy Nicholas M. Schehek and other execs. $chary plans to leave for a four- week vacation in Florida tomorrow (Thurs.)v where he’ll probably hud- dle with Schenek. Latter is sched- uled, to depart for hi^ annual Flori- da vacatiori immediately after New Year’s. Metro sales veepee William F. Rodgers, incidehtally, left for Miami last Friday (22), so will also be available there tp sit in on the talks. Schary revealed on his arrival from the .Coast that Metro has nine ; new pictures ready to foil and con- ; firmed reports that the Studio - would increase its output for 1951. ! while he did not specify the num- ber of pictures to be produced, it’s believed the company will up its feature production from the 36 turned out this year to 40 for the coming year. Seven pictures are now before the camei'as, with another 20 in final pha.ses of filming, editing or 1 release printing. Goldwyn East to Eye Players and Writers Samuel Goldwyn is due in New York from the Coast next Wednes- day (3). He’ll be east only about a week. Trip is said to be involved with internal affairs of the Gold- wyn organization, for the purpose of talking to Writers who are work- ing in New York on several scripts for the producer, and to see pros- pective players and writers, Mrs. (Frances) Goldwyn was east for a week about a month ago on pretty much the same biz and lined up a number of young actors and writers for her husband to see. She's not accompanying him on this trip. President of 20th Century-Fox Films Spyros Skburas Feels Certain that Better Pix Always Get Better Biz .* * * An Interesting Byline Piece In the 45th Anniversary jyumber of OUT mXT WEEK Washington, Dec. 26. Divorcement of the Warners’ the- atre chain within 21 months is pro- vided in the proposed antitrust de- cree Which will be submitted to the New York trial court for ap- proval on jam 4. However, submis- sion depends upon formal approval of certain tax and fiscal features before then by the U. S. Treasury Depaftment. Exemption from the corporate reorganization levy is sought by WB. Two successor corporations—one to operate the theatres and the other to run the studios and dis- tribution end of the business-will be created, with stockholders ill the present WB obtaining shares of ■ stock in both the new firms. In I addition to divorcement, the big exhibition circuit must divest a minimum of 52 of its theatres, with another 21 or more Subject to di- vestiture depending upon competi- tive conditions in the future. Half of the 52 divestitures must be com- pleted within one year and all must be disposed of within two years. In the splitup, the three Warners —Harry, Jack and Albert—are all required to remain on the same side of the fence, either exhibition (Continued on page 14) Zenith Radioes Bhonevision rolls New Year’s Day in Chicago with three top-budgeted and top-starred major company features, all re- leased originally in 1948. With a reported 75 films made available for the test by several major and minor distributors, Zenith prexy Eugene F. McDonald, Jr. has select- ed for the preem Warners’ “April Showers,” starring Jack Carson and Ann Sothern; Paramount’s “Wel- come Stranger,” toplined by Bing Crosby and Barry Fitzgerald, and Metro’s “Homecoming,” co-starring Clark Gable and Lana Turner. Films are to be offered to 300 Chi families equipped with the Bhonevision “pay-as-yoU-see” de- vice, through which they’ll be able to order them screened in their homes at a fee of $1 per showing. Features are to be transmitted at 4, 7 and 9 p. m. daily. McDonald has set up a rotating schedule, un- der which a film shown at 4 o’clock one day will be repeated at 7 the next day and at 9 the third day (Continued on page 40) National Boxoffice Survey Arrival of Xmas Perks Trade; ^Music^ New Cham- pion, -Heaven,* ‘Harvey/ ‘Song' Next Strongest Biz is perking up in most key cities covered by Variety this week, with end of pre-Christmas influences. However, some spots still reflect the downbeat that pre- ceded arrival of Dec. 25 While oth- ers are being hurt by snow and ex- tremely cold weather. Also, tfie current session will not reflect new, stronger product as much as next week, since many theatres opened their new bills well before Xmas day,- “Mr. Music”. (Par) is taking over first place by a healthy margin, with over $310,000 amassed in some 12 key cities. New Bing Crosby starrer is uniformly nice to smash, being tops or , tandput film in three cities. “For Heaven’s Sake” (20th) is finishing second, although just okay in several keys and good in some Other dates. “Harvey” (U) is showing enough on its initial batch of playdates to capture third position with a ma- jority of dates sock to woW. Fourth spot is being taken by “Pagan Love Song” (M-G.), also new, while “Dal- las” ( WB) is landing fifth money. “Never a Dull Moment” (RKO) will place sixth, with "Watch: Birdie” M-G) seventh. I “West Point Story” (WB>. “Solo- ^ mon’s Mines” (M-G) and “2 Weeks With Love” (M-G) rounU out the week’s Big 10. “Kansas Raiders” (U), “Let’s Dance” (Par), “I’ll (5et By” (20th) and “Breakthrough” (WB) are top runner up pix. Besides such films as “Harvey,” “Music,” “Song” and “Dallas,” of the new pix “Kim’* (M-G), “Mud- lark” (20th) and “Frenchic’* (U) show perhaps the greatest poten- tials. “Kim,” in third big week at N. Y. Music Hall, opened this stanza with sock ’.ptal in Philly. “Frenchie” (U)* neat in Chicago, is smash in San Francisco. “Mudlark” looms smash in first. N. Y. week. “Magnificent Yankee” (M-G) shapes sturdy in X. A. small-seater. “Vendetta” (RKO) is doing well in three spots. “Branded” (Par), also new, looms strong in Frisco, but “Flying Missile^ (Col) is not so good on initial date in N. Y. “American Guerrilla” (20th). is stout in K. C, “Mystery Subma- rine” (U) look$ okay in Philly and 'L. .-A., . ■ “Mad Wednesday’' ( RKO) shapes nice in Seattle biit not so strong in Louisville and Indianapolis. “All About Eve”. (20th) is big in St. Louis. , “Miniver Story” (M-0) shapes oke in St. Louis. “Right Cross” (M-G) is fair in Boston. “Two Flags West** (2Qth) is do’ng nicely in St. Louis, but is mild in Philly. (Complete Boxojfice Reports on Pages 8-9.) Swanson Cavalcade ' Being Assembled By N.Y/Film Museum Film library of the Museum of Modem Art, N. Y., is assembling clips from various of her old films for a 45^minute Gloria Swanson Cavalcade. It’s been facetiously dubbed by the Museum staff “Swanson Through the Ages,” (Composite, being assembled un- der supervision of Richard Griffith, assistant to the director of the li- brary, will have its initial showing (Continued on page 7) Trade Mark Registered FOUNDED BY SIME SILVERMAN Pubtished Weekly by VARIETY, Inc Harold Erichs, President 1S4 West 46th St.. New York 19. N. V Hollywood 21 6311 Yucca Street Washington 4 1292 National Press Building Chicago 11 613 No. Michigan Ave. London WC2 8 St. Martin’s PI.. Trafalgar Sq. SUBSCRIPTION Annual..... $10 Foreign . $11 Single Copies . ....... 25 Cents ABEL CREEN. Editor Vol. 181 I2Q No. 3 HAPPY NEW YEAR INDEX Bills Band Review .....,, Chatter . . Film Reviews.,.,... House Reviews .. ♦,. Ihside Legit. ...;, . Inside Pictures ..... Inside Radio . .... If'-^e Television... International liegitimate Literati . 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