Variety (January 1952)

Wednesday* Jappary 2j 1!>S2 Forty*ixtk Anniversary INTERNATIONAL Lavish 115, Fins Stitt Appeal to Argentina; ’$2 B.O. Looks Bearish Buenos Aires. Film grosses reached higHest levels in Argentina in the first nine months It 1951, tapering off later with the start of torrid weather; competition from the outdoors and An incipient depression. The taperingnoff period happened to coincide with an abundance., of American releases after the long famine caused by a two-year suspension of film imports. This suspension was prolonged by the local authorities more than was actually necessary, to insure the choice playing time going to the locallymade films withou^^ undue competition. A comparison of the figures for the first five big grossers of 1950 and 1951 shows to what a degree movie attendance, increased in Buenos Aires as a result of the growth of the population, and to greater purchasing power due to constantly increasing wages. First six grossers of 1951 were "The Red Shoes” (EL), 12 weeks, $184,690; "Los: Isleras” (San Miguel), 12 weeks, $151,000; "Domani e Troppo . Tardi” (Italsud), 17 weeks, $125,690;, "La Culpa la Tuvo el Otro” (Belgrano), 12 weeks, $80,155; "City Lights” (UA), 11 weeks, . $79,235, and "Enchantment” (Goldwyn) 10 weeks, $76,475. All year, national -and foreign distributors urged the government to okay very necessary price increases for film-theatre admission.. These increases . would go a long \yay to solving, the financial difficulties of the local .film industry and are also essential for exhibitors, whose costs have been tripled over the last few years. American distributors have also had to face increased costs due to a high percentage of expenses, mainly through increased national, provincial and municipal taxes, Wage increases, increased cost of prints, accessories, customs duties and any number of other items. Pix admission scales have remained, more or less stationary since 1.932, the only increases have been in municipaltax additions and a rakeoff for the "Eva Perqn Foundation” and Producers Assn, (for a fund to make improved local pictures.) No Admission Hike So far, the government has turned deaf ears to pleas for price increases, being reluctant to increase entertainment costs for the classes which keep it in powers But just as prices of newspapers have had. to be Upped, so are the increases in film admission scales inevitable. Press and Information Minister Haul Apold, who is the country’s entertainment czar, is mulling over with local producers and exhibitors amendments to the Protection Law, which already grants more favorable playing time, holdover terms and percentages to the locally made films. American distributors fully expect that the result of the huddles will be decreased playing time for their material. Foreign distributors have already been served notice of the schedules on which the two biggest city circuits must exhibit national films m 1952, and as is logical, the nationals get the choicest playing dates. This follows the trend towards tV€!;iiIncreased protectionism, regardless of the poor advantage , e,n of their opportunities by locai producers, the quality/ of whose pictures has not become more adapted to foreign audiences. J he results of the last year, howCfver’, Prove that local pictures can ':SP t0 f°reigh competition when they are good. Grosses in 1952. may drop con til?iffKibly%follpwing the trend no *n the last couple of . which has been rather be ;ow the seasonal average. Every thing points to Argentina facing a severe economic depres of tbei government’s neglect eff !l .lnterests has a telling tr(hi,fnrnd f,o6d Prices soar. Dis famiiv>r^ r®ck.011 that in most Cases S* budgets will not allow at once pix theatres more than a r twice a week in 1952, with neS drop in grosses. Busi readv vnthe rural districts is already very poor. PictSr?tSy special factors affect %t H is difficult tainme^f^ ^ iocal taste in film entertainment from boxoffice yield: 'The 193 consensus of opinion is that Argentine fans prefer American productions of lavish display, preferably in cplor. They do nbt go for sophisticated Comedies and conventional melodramas or westerns, but are gluttons for suspenseful yarns and thrillers, or human interest stories of the "Life with Father,” "Father of the Bride” type. Stories with a war background are not now generally favored, and the tendency of late has been to sidestep anything reminding local fans that they are enjoying comfort while other nations starve. Optimism Prevails in Int 7 Market Yanks Eye $125,000*000 Foreign Payoff for Year; Quotas Remain Major Problem By NATHAN D. GOLDEN (Director, Motion Picture & Photographic Products Division, National Production Authority) By HAROLD MYERS =J T, , « London. It may have been Festival Year for Britain, but there was not mUch cause for rejoicing by the British film industry in 1951. On the surface, things looked placid enough. The J. Arthur Rank Organization had turned the corper and the latest accounts showed this group in much healthier position. Its principal competitor, Associated British, had had another successful year. To the casual observer it looked as if many of the industry’s troubles were over and an era of restrained prosperity was ahead. Actually, that, was far from being the case. A few weeks before the pomp and ceremony inaugurated the Festival, the Chancellor of the Exchequer delivered a staggering blow with his demand for an additional $25,000,000 year theatre taxation. That the industry was angered at the new taxation was inevitable. But for once there was a welcome unity among all branches of the trade. Exhibitors, producers and distributors were agreed that the government had gone too far, and they fought back vigorously. The outcome of the anxious weeks of negotiation that followed is now history. What was eventually achieved was a comproniice which gave some little, benefit to theatres, substantially more to British production* and something like an estimated $18,000,000 for the Treasury. Fund Enlarged . Now, under the extension of the scheme, the fund is being enlarged to net something like $10,000,000 annually. In term’s of its practical benefit for British film-makers — and this includes American companies operating here— it should add something like 34% to the basic distributors’ gross. For the average run-of-themill picture which has to reiy on the domestic market for its earn-: ings, this should be more than adequate to insure a profit. Clearly, the producers have fared well. Exhibitors, on the other hand, have less to shout about. Admittedly, under the new arrangements they get a little bit extra for themselves, but in order to raise sufficient coin to feed the pool .and the Chancellor of the Exchequer, admission prices have had to take a sharp upward swing. With commodity prices constantly on the up-and-up, this policy change represented a serioUs gamble; No one knew how the public would react; nor could anyone be too certain Whether there was sufficient ready cash available to maintai attendance figures at the regular* level. At first, it looked as if the gamble had come Off. The. British weather seemed to have come to the aid of the picture industry. A notoriously wet summer drove holiday-makers into the theatres, and a boOni had begun. It was, however, a shortlived boom, and today all the signs point to a serious decline in takings throughout the country. So, the weeks to come are anxious ones, for theatre operators. Most of them are waiting to see the outcome of the new tax . scheme which the industry, is now discussing with the government. Several alternatives have been put for.ward, but the odds favor a combined flat rote and percentage scheme. This would involve a seat tax on lower-priced admissions and a percentage tax: on the higher scales. But whatever the system, the government still wants its rakeoff and is not prepared to make any, financial concessions to the Industry. j Washington. Reports from all quarters of the industry, and from most of the major foreign markets for U. S; films indicate that conditions in general in the international market with regard to distribution of American movies were considerably better in 195i than they had been during the past several years. Estimates as to dollar remittances from, abroad during i951 have ranged as high as $125,000,000, and there has been a general note of optimism With regard to the future out* look for U. S. films on the world market. However, near the end of 1951 there were reports of foreign exchange difficulties in several European countries Nathan D. Which may forecast problems in these markets. Probably the chief factor in this brighter outlook has been the settlement of some of the major problems besetting American film companies in remitting film earnings from such important markets as the United Kingdom, France and Italy. Also, gotiations have;, been Carried on looking forward to a mutually satisfactory arrangement in Spai Argentina, Germany, Japan and other foreign countries where the distribution of U. S.. films has been limited due to legislative restrictions and foreign exchange regulations. In some foreign markets, however, as in all postwar years, the U. S. industry ran into several problems during -1951. Threats of a 50% screen <juota in Mexico, proposed restrictions on film remittances from Belgium, and a proposed decree in Brazil which would greatly affect U. S. film distribution in that country, have been the subjects of considerable negotiations in the. international field. Japan has instituted an import program limitinf U. S. feature film imports to 150, and in Germany a screen quota for the showing of German films has been proposed. In most of these instances the U. S. film industry has been, able to arrange for a satisfactory settlement or a postponement of the threatened restrictions, pending further negotiations. U. S. films, with their broad appeal to all audiences, continue to be the favorites of moviegoers throughout the'world. Occasionally, an outstanding film from a non-U. S. producer is successful in the world market. In boxoffice appeal, however, and in acceptance by local audiences, American films in general far surpass those of other countries. A recent survey indicated that approximately 74% of the feature films shown in the world’s theatres, outside nf Soviet-dominated countries, were produced in the U. S. Foreign Production Up Although production of feature films in a number of foreign countries has increased considerably in. the. past few years, the strongest competition offered to u; S. films in the international field comes not from the products of other countries but rather from legislative restrictions imposed by governments on the free importation and distribution of films. These restrictions are imposed1 both to conserve the dollar exchange in the various countries and also in an. effort to assist, the development of a domestic national film industry. However, it is reported that the supply of Yank films in most countries of the world is not able to satisfy the tremendous popular demand. There appears to be general and continued satisfaction by London representatives of U. S. film companies and of the British government over the terms of the new Anglo-American film agreement, which was signed in Washington Oct. 17, 1951. The new agreement, which followed prolonged negotiations, extends for two years, effective Sept. 30, 1951, the basic provision for the transfer of $17,000,000 annually in equal monthly installments. In addition to this amount* a sum equal to 33V6% of the amount expended on British productions by U. S. companies, plus the equivalent of money expended for American rights to British pictures* may be remitted. The British Government has also guaranteed convertibility of a .minimum of $4,000,000 annually as' the U. S. film companies’ shares of the Eady Tax Plan, which provides for subsidies to producers, distributors and exhibitors in the United Kingdom. Total remittances to the U. S. under this agreement are estimated to be in the neighborhood of $25,000,000 to $27,000,000 annually. | . Limits on Dubbed Pix ; While there are limitations on the number of dubbed U. S. feature films permitted to be imported into France, foreign exchange authorities in that country issued instructions in July, 1951, removing, all restrictions on the transfer of Yank film earnings. In May, 1951, an agreement was reached, between the major U. Si film companies and representatives of the Italian film industry providing for the release of blocked film earnings. The agreement is reported to provide for immediate release of 50% of blocked U. S. film money to the American companies on July 31, 1951, with 25%. to be. loaned to the Italians to aid in film production and for promotion of Italian pictures in the U, S., and 25% toi be used for other, purposes, including production and co-production in Italy by state-side companies. After July 31, American film earnings were to be released on this fixed formula every three months. The first installment, under this agreement, amounting to $3,200,000 was authorized in August, 1951, and $1,000,000 was remitted in October, 1951. U. S. film companies agreed to impose a voluntary limitation, on the number of their films exported to Italy., After not granting import permits for U. S. films Into Argentina since March, 1949, the Argentine Government In June, 1951, suddenly invited American film distributors to apply for import permits in unlimited quantity. U S. film distributors Immediately applied for import; permits, and the Central Bank of Argentina approved in short order the import of some 480 feature, pictures consisting largely of the finest U. S. productions in 1949, 1950 and 1951. Five of the distributors also plan to again supply the Argenti he market with American newsreels, Film earnings, are now accumulating, but applications have not yet been made for remittance* The announcement by the Central Bank permitting unrestricted imports of U. S. films stated that in due course the Central Bank would consider the authorization fOr pertinent remittances. Lengthy negotiations have been carried on during the . year between the Spanish Government and ^representatives of the U. S. film Industry in connection, with the import and distribution of U; S. films in that country. Licenses necessary to import foreign films into. Spain are granted only tb Spanish film producers, the number of Such permits issued being dependent Upon the. number and elassification Of the domestic film produced; ' ! Spanish Setup | The Spanish producer may use these import licenses tb bring in foreign films under his own name or he may sell the license, at whatever, life market will bear. This not only limits the number of* films that may be imported but in many cases makes it a very expensive business venture. The same procedure is followed i the granting of licenses to dub imported films into the Spanish language. Although an agreement was reported in the trade press, it was never ratified and has not been : put into effect. It is encouraging, however, that the Spanish authorities have agreed -to negotiate with th* U. S. film companies in an effort to reach a satisfactory solution to some Of the problems that have been hampering distribution Of American .films, in Spain. The nuffiber of U. S. feature films released in Spain has been declining steadily during the past several years. The Japanese film import program as announced by. the Ministry of Finance for the fiscal year 1951 ■ < April, .1951, through March, 1952), provides for the importation of 150 U. S> feature films; Of this total, an agreement has. been reached allocating .120. features to the nine major U. S. film companies and 30 features to independents. Of the 120 feature films allocated to the major companies, 84 will have been released through the Motion Picture Export Assn, by Dec. 31, 1951, and the remai Ing 36 * films will be divided among the nine companies... MPEA has acted as a combined distribution organization fbr the ine major companies since 1946. However, effective Jam 1, 1952, MPEA will. cease to function in Japan and each member company will begin handling the distribution of its own films. The Ministry of Finance has stated that approximately 30% of film earnings during the fiscal year 1951 will be convertible to foreign currencies, The future prospects for Yank film distribution in the foreign markets throughout the world are very difficult to forecast. Near the close of 1951* U. 5. film companies . Were confronted with problems in Brazil, Belgium and Indonesia, and there were some indications of trouble in other markets. Negotiations were being carried on endeavor-, ing to reach: a satisfactory solution for the disposition of accumulated film earnings in Indonesia. In Brazil, U. S. film companies were greatly disturbed by a proposed Presidential decree which would have aided the Brazilian film industry but affected the distribution of U. S. films in that market. The Belgian Government, which has placed virtually no restrictions on the importation of films or the transfer of remittances, has under consideration proposal to limit imports of U. S. feature films; prohibit the importation of positive films, requiring all prints to be made in Belgium; and placing restrictions bn the transfer of film earnings. Late, in November these restrictions had not been put into effect and negotiations were being carriedon with (J. S. film distributors seeking a mutually satisfac-.. tory arrangement. It has been stated that the world market for American films spells the difference between profit and loss for the industry. In order to Obtain its share of the International market the .film industry must see to it that films exported are Of the highest quality and that they give no reason for nationals of other countries to take Offense at their exhibition;’ U. S. film, producers, in • planning a feature film for the world market, usually take into account foreign customs, habits and religious practices, and attempt to portray on the world’s screens a picture which will not only be entertaining but will be well received by audiences in all walks of life throughout ; the world. Largely as, the result of this practice* wherever the masses of the people have a free choice in selecting their movies.’ U. S. films thrive and flourish..