Variety (July 1954)

Wednesday* 28* 1954- PTBBURt TV-FILMS 97 Of Mice & Vidpix Men TV Film Ed Madden By EDWARD D. MADDEN (V.P U Genera l Manager, MPTV) You remember the quotation: Thet best laid schemes of mice and men Gang aft a-gley An * lea us naught but grief and pain For promis’d joy, ( . —Robert Burns , I think it has particular application to the film syndica- tion business right now in several important areas. The proper approach to these problems on the part of individu- al distributors will determine in large measure who are going to be the majors and minors of the future, Some of the producing organizations have some rather peculiar ideas about distribution* fees. There are deals being offered and faken by distributors at a 25% distribu- tion fee for one and up to five or 10 individual sponsor sales, then reduced to 15% for large regional or national spot sales, and a less amount for a network sale. Re- gardless of the quality of the product and the presumptive ease of sale ber • cause of this quality, the basic selling and handling costs are still there. The large regional or national spot sale . requires just as much manpower cost and out-of-pocket expense in’ terms of promotion, publicity, advertising and servicing as does, the same group of markets sold individually. Any top- -flight distributing organization capa- ble of producing worthwhile sales re- sults gets 35% for individual' markets, regionals and na- , tional spot sales. When you move around this broad land of oUrs and see some of the prices quoted for good properties in the medi- um and smaller sized markets, even though some of the properties are previous network runs, you can only con- clude that some of the pricing structures border on the ridiculous. In those cases where it is a new property, it's evident that the producer isn’t even going to get his pro- duction cost back. The prices quoted in some of the small markets won’t even return that market’s proper share of print and handling cost. I can understand this happening on a “dog” property, but when it’s done on some of the good ones, it becomes rather baffling. All of this, mind you, in the face of an increase of 25% over last year in network share sponsorships and what this presages in the increasing trend toward syndication - because of flexibility and lower advertising cost. .Some of the distributors who haven’t taken a good cost accounting look at their operation are due for a rude . awakening this year and the process of shakedown in the industry will then begin. All of the above, of course, refers to problems of the individual distributor which he, himself, must decide in the light of his own individual operation. There are, however, certain mutual problems concern- ing advertisers, agencies and stations that call for col- lective action. I, for one, hope to see this year. the. emergence of a distributors’ organization with full mem- bership that can speak for the industry. Now Is The Time For All... By REUB KAUFMAN .(President, Guild Films Co., Inc.) The increasing shortage of desirable network time, • coupled with the growing demand by many television sta-. tions for a greater share of the money spent by advertisers for tv time, plus the tremendous improvement in the quali- • 1y, variety and entertainment interest of filmed program, series, have helped to firmly establish film syndication as an important factor in television. Now it is up to the syndicators themselves to rise to the opportunity which has unfolded for . syndication. Some syndicators realize this opportunity also carries with It the weight of syndication’s share of responsibility for the welfare of the industry as a whole. Unfortunately there are still too many syndicators who think tv is a ticket to a quick buck. And, we still hear of individuals who go into distribution-^become syndicators— of their single pilot film or l^episode series without real knowledge or preparation for such an undertaking. To be successful in v syndication, the syndicator needs more than a length of film and a telephone. It requires organization, ' manpower, an adequate and continuing source of quality program series, service departments • from public and station relations to client service and pro- gram promotion. These elements which are so essential to successful syndication are costly and require substan- tial investment and access to large financing resources. Equally important is the need for know-how—the unique knowledge of advertising and client merchandising as well as programming, film production and showmanship. It is due to the fact that so few syndicators have either the physical resources or the required know-how that syn- dication is rapidly settling down to a very few “majors” and many “minors” among syndicators. The majors who will remain in the big league can be depended upon to be progressive businessmen with a full awareness of their present position and future opportunity, and also of their obligation to actively participate in and contribute to the up-building of the whole tv industry. The smaller con- cerns who wail to pull themselves out of the minor league within a short time cannot hope to survive with any de- gree of reasonable success. They are doomed to suffer irom hunger (and all its consequences in the way of un- sound business practices) while the majors will grow bigger and stronger. • • • This is the trend in film syndication today. It is a healthy trend and cannot help but benefit the television industry. Syndicators have reached a point where In their own interest and for the benefit of industry generally they must join, together in a strong and meaningful association which will have the means to develbp and carry out a continuing program for the improvement and protection of syndication’s participation in the television industry. This Ji ?task for which the majors must assume both respon- sibility and leadership. Is It (NBC By CARL M, STANTON V.P., in Charge of Film Division) Carl Stanton A strong syndicated-film operation is an important asset to a television, network, while the network is replete with advantages unavailable to an independent film syndi- cator. . There is no basic conflict between film syndication and network television service. Although in some areas syndi- cated film programs may be televised in competition with network programs, the desirability for a network to extend its television business through syndication Vastly outweighs the occa- sional instance of local competition made inevitable by the nature of syn- dication. The syndicated film business, which was given stature and stability In the last year by the mushrooming of tele- vision stations across the country-— and the consequent upsurge in the number of local programming hours to be filled-—is big business today! Because the major networks have recognized this fact, they have estab- lished syndication arms and given them the freedom to operate effectively in the highly competitive field of tv film syndication. A little more than a year ago there were 110. tv stations In 64 cities. Today there are 385 stations in 239 cities. Syndicated film programs are filling a large part of these new programming hours which cannot be filled by net- work originated shows. It is a logical consequence that the networks should extend the Scope of their activities by going into the syndication business themselves. Chief among the advantages which a network-affiliated film-syndication outfit enjoys is its access to many of the finest, most successful network film series, either during the network run or following it. The NBC Film Division, for instance, syndicates “The Life of Riley” in markets not covered by the NBC television network sponsor (Gulf Oil), simultaneously with the network run. The over- whelming success of “Badge 714” (formerly “Dragnet”) and “Victory at Sea” as Syndicated programs after their network runs are strong arguments!in favor of a network- connected film-syndication branch. Additional opportuni- ties are presented by such NBC television network shows as "I Married Joan.” “Letter to Loretta,” the Mickey Rooney show ahd “The Medic.” Our current inventory will soon be augmented by 39 new “Badge” episodes for the 1954-55 season, the new network Riley’s—plus the first two network seasons of Riley. Web’s Physical Resources Another prime advantage for a network-connected film syndicator is the fact that network techniques and methods of operation are automatically carried over into syndica- tion. Programs are designed to meet the requirements of advertisers and the tastes of the viewing public— programs which, in effect, move merchandise while they attract large audiences. A. network’s technological and physical resources are also important assets to a distributor of syndicated film series. The NBC Film Division’s shipping and library services are the largest of their kind in the TV industry. Originally servicing 76 stations with syndicated programs, network film shows and kinescopes of network programs, the New York and Hollywood film exchanges (operated by the Film Division) now service 285 stations with 2,000 prints a week, covering 4,000 actual weekly playdates. Constant research by the NBC engineering staff makes available to the NBC Film Division the latest technological ahd electronic developments, in both black-and-white and color TV-^-all of which enhance the quality of the product. Future developments will encompass magnetic tape, new scanning processes and other phases of this complex in- dustry. Another unique technological advantage is the checking of rushes and final prints on closed-circuit tele- vision, to insure the broadcast quality of each program. Competing With Network Because of the highly competitive nature of the film syndication business, a basic requirement for survival is the ability to sell programs to all stations and all adver- tisers. In recognizing this fact, NBC has given the Film Division the scope to operate as a. successful, income- producing arm of the company. This condition sometimes results in local competition between an NBC Film Division program and an NBC television network program. We have, after all, no control over local time availabili- ties. If, furthermore, we sell a program to an agency for a specific client and the agency places the show on an independent station in competition with a network program, we cannot control that, either. And the quality and popularity of our programs is such that they have outrated all network competition in many multi-stationed markets. This kind of competition, of course, is far from un- healthy. The success of NBC Film Division programs for local stations and advertisers has created a general cli- mate of prosperity for individual tv stations and has performed a service to the film-syndication business as a whole by giving impetus to the local use of this kind of programming. It seems to me that such competition is more than compensated for by the fact that the network-connected film syndicator is in a doubly strong position because of (1) his freedom to distribute effectively such outstand- ing properties, produced especially for syndication, as “The Falcon” and “Inner Sanctum” in competition with independent film syndicators; and (2) his access to the network’s finest tv film series. A film-syndication network combination assures a steady flow of fine programming to diversify and enhance an inventory of programs produced especially for syndication, It is, in the final analysis, upon this kind of organization- bolstered as it is by broadcasting experience, technological resources and a deep-seated sense Of responsibility to the advertiser and the viewing public—that the sound future of the film-syndication business depends. Geo. Bhupert • By GEORGE T. SHUPERT (Pres., ABC Film Syndication) What has happened to the reported battle lines drawn up between some networks and their film syndication divisions? Is it possible for film syndication to function within a network without becoming a serious rival for station’s time and advertiser’s money? From what I have learned there is no real; conflict between a network and its syndication subsidiary if the network is objective and recognizes the need for ahd the place of film syndication in the television industry. Here at ABC there is real-understand- ing of the situation and genuine en- thusiasm about the potential of film syndication. A network, as any other service or- ganization, is most successful! when it provides its customers and . prospec- tive clients with the broadest, most ef- ficient and: flexible service possible. With more and .more advertisers finding television a highly effective sales vehicle, network time is becoming increasingly scarce and the networks are hanging SRO signs in most choice time periods. Consequently, national and large regional advertisers who are unable to secure network time would be shut out of . tv entirely if syndicated films were not available. These advertisers have learned that it’s difficult, if not impossible, to obtain network quality in live, locally produced shows so they turn to top quality syndicated film programs to carry their sales messages. Consider the established national or regional advertiser with a limited budget or the new advertiser who wants to test the medium. Through syndication, both are able to buy films for spot advertising in the markets of their choice, on the days aid in the time periods they require. If they buy their film from a network syndicator, they are assured. of quality programming and service. They know that films will be delivered on schedule. They are confident that their advertising plans will not be dis- rupted because , a shoestring producer or distributor has failed to live up to his obligations. Then, when these clients are able to afford network .advertising, 'they are usually favorably inclined to the network which serviced them for their spot buys. Con- sequently, the network benefits as well as the syndicator. Meeting Special Sales Problems Another area in which a network can serve its client through film syndication is where an advertiser has a special sales problem or wants to initiate a special sales drive in markets already covered by his network show. By buying a syndicated film, produced to network quality standards, and programming it in specific markets, the advertiser is able to accomplish his purpose without a loss in program quality. Perhaps one of the strongest arguments to prove that there is no conflict between network and film syndication objectives is the fact that within the past three years all the networks have organized their own film syndication departments to meet the growing demand for spot film and to broaden their sendees to sponsors. These addi- tional services will become increasingly important as new markets open up. Let’s be specific and look at how we handle film syndi- cation at ABC. Almost a year ago I was asked to organize a film syndication department because of an awareness on the part of the ABC management of the important role film syndication had been playing in television and a belief that its importance would keep pace with, if not outrun, the growth of the industry. In order to compete favorably with other film syndicators it was necessary to create a completely independent setup apart from the other operating units of Ijie network. ABC Film Syndica- tion was set up as a separate corporation, wholly owned by American Broadcasting-Paramount Theatres, Inc. Right from the start we instituted what we feel is a realistic first-come, first-served sales policy, without which it would be impossible for us to compete on an equal footing with other film syndicators. In all of our relation- ships with the network we neither getTrTor give preferen- tial treatment. This applies to the owned, and operated stations as well as to our affiliates. All television stations throughout the country are assured of receiving the same type of service from us. We play no favorites. Before joining ABC, I headed the film syndication de- partment for United Artists and prior to that helped organize Peerless Television Productions with Edward Small to distribute 26 outstanding feature films. Previ- ously, I spent many years operating the Paramount film network for Paramount TV Productions, Inc, Now, having worked in film syndication as ap independent distributor and as a network syndicator, I liavfc formulated some thoughts about both operations. Because of the tre- mendous potential of film syndication, I believe that it can be successful with or without network affiliation if the syndictor has top quality programming, astute man- agement nd clearly-defined policies. We believe we have met the above requirements, We are currently offering outstanding film shows whose pre- vious successful network performances (incidentally, not on the ABC network) are being repeated iri syndication, “Racket Squad” and ‘'The Playhouse,” formerly “Schlitz Playhouse of Stars.” Our third property, “John Kieran’s Kaleidoscope,” is a successful combination of education and entertainment and has proven itself a profitable sales tool for a variety of prestige advertisers. We have kept and will continue to keep a sharp eye on pur operating costs in order to’ pass our savings onto our clients and we have instituted a set of policies which enables us to provide the utmost in important services. As advertisers continue to rely more and more on tele- vision as the most effective and efficient sales vehicle at their disposal there will be plenty of opportunity for net- works, their film syndication subsidiaries and independent syndicators to prosper. After all, television is big business and there’s room for everybody with the right type of product and the enthusisam to sell it.