COSTLY TALKIES

Sun (Auckland), Volume III, Issue 914, 6 March 1930, Page 13

COSTLY TALKIES

AUCKLAND EXHIBHORS PERTURBED SOME ALTERATIONS WANTED The cost of talking pictures is a subject which is seriously concerning film exhibitors in Auckland, where the competition is more keen than in any other city in New Zealand. Tei'ms and guarantees demanded by the American distributors are considered by many of the Auckland theatre owners and managers to be excessive and various means have been discussed with a view to some concerted action being taken to have the costs lowered. Today, one leading theatre proprietoi; stated that in his opinion the position would right itself when the supply of pictures exceeded the demand. At present there were not enough pictures to supply all the theatres with continuous changes of programmes. An enormous • amount of money is pouring out of New Zealand to the United States every week for film hire. The estimate for, Auckland alone, which can only be an indefinite one at best, was stated to be between £I,OOO and £1,500 by one man, and between £1,500 and £2,000 by another.

GUARANTEE DEMANDED In zzeai’ly every case, though there are exceptions, a guarantee is demanded when a picture is sold. This is in addition to a substantial part of the gross receipts. The guarantee is demanded whether the picture is scz’eened or not or whether the film earns any money at the box office. Sometimes films are “shelved,” even after they have been passed by the censor, by film exhibitors who think that' such a film will not be suitable for their patrons, but the guarantee has to be paid just the same. Several film exhibitors in Auckland would prefer a fairer system than that which is at present in operation. A film is entitled to what it earns at the box office. Exhibitors would be happy to pay a percentage of what a film draws to the box office, but the guaz-antee which is demanded frequently amounts to a greater percentage than the film actually earns. It was learned today that the average guarantee varies from £IOO to £2OO a picture. Talking films are sold to exhibitors at a percentage of the takings up to a certain point, known as the splitting, point. When this has been reached the film companies get 50 per cent, and even 60 per cent, of the gross takings. The splitting point is set at an amount at which it is assumed the theatre-ownei' will make a reasonable profit. FILM HIRE Many films never reach that splitting point, consequently the theatreowner does not make a profit but the film disti’ibutor does because he is on a guarantee. The film hire for one very successful talkie shown in Auckland recently amounted to something like £I,OOO a week and it is estimated that another vez-y successful film will cost £IO,OOO jzz hire by the time it has been shown through New ZealanH. What action will be taken no one can say, but it is believed that events are moving in that direction. Already action has been taken in Australia, where the Motion Picture Exhibitors’ Association has approached Sir Victor Wilson, president of the association, and stated that many of the theatre proprietors will be unable to carry on if the load is not made lighter. Recently the Commonwealth Government issued instructions refusing to allow zzzoney to be sent overseas for film hire. It is estimated that between £IOO,OOO and £150,000 is held by the banks in Sydney alone for the American exchanges. However, some money must be going to the United States. Is it being forwarded through New Zealand banks? In the opinion of Mr. Henry Hayward, managing director of 'Fuller Hayward Theatres, the position re garding picture costs will right .tself when the supply exceeds the demand and when the present supply of talkies zs reinforced by more pictures from England, the United States and Europe. He thinks that any action taken by the theatre proprietors at the present time will not have much effect on the film exchanges, as the supply of films zs not great enough for the demand. WHOLE PROGRAMMES NOT SOLD One thing which is making talking pictures more costly than their silent predecessors is that whole programmes are not sold by the exchanges. When silent pictures were the vogue, a theatre proprietor bought the whole of one evening’s programme, including features, gazettes, and short pictures. Now a feature is all that is bought, and proprietors are harassed by having to find their shorts and the rest of the programme wherever they can get them. “The greatest service the film exchanges could do for showmen today would be to sell them a whole programme at one time,” said Mr. Hayward. He thinks that a fusion of the various interests in the picture business may come in time. This will reduce the cost of distribution, which at present is extremely costly, and adds to the increased cost of the talking pictures. The general trend of pictuz-es is for a reduction in prices, and he advises theatre proprietors to make only short contracts. With a reduction in film costs, will come a corresponding induction in the price of admission.