Interesting Facts About This Industry Allied With Art, continued (click to enlarge, see below for text)
prosperity for the producers of Los Angeles and for the individuals and institutions financing their productions.
A recent survey of every town of more than 10,000 population in the United States, made by trained men in the employ of one of the largest distributors, conclusively shows that never before has the commercial outlook at the motion-picture industry looked so favourable.
DISTRIBUTING OR MARKETING THE PICTURES
After reviewing an advance print of a picture, the officials of the producing concern fix a national quota for the pictures. This quote represents the aggregate sum to be paid for the picture by the exhibitors likely to show the picture. This quota is then re-apportioned among the various exchanges, throughout the country, that will handle the picture.
The seating capacity, population of the city or town, admission charges, etc., are the main factors in fixing the rental charge, a small theatre possibly paying a greater rental than that charged to a large theatre having a less potential potential earning capacity. If any uncertainty exists as to the amount of the national quota and rentals to be charged, a tryout in some city is adopted to indicate the probable popularity and drawing power of the picture.
Several of the large producers sometimes join together and distribute their own productions. The independent producers sometimes sell a picture outright to one of the distributing organizations, or, they may rent a picture out to local distributors on a States-rights contract, on a percentage basis, covering the sale of the picture in certain states or territory. Films are distributed in foreign countries through exchanges the same as in America.
Motion-pictures are “sold" meaning rented for one day, several days or weeks as the demand may require. They are usually booked ahead for several weeks, sometimes for months ahead by the exhibitor who pays the rental one week in advance of his booking date.
The 100 or 150 positive films that are made of each picture are divided among the distributors and these prints are forwarded from theatre to theatre as long as the picture is in demand.
Motion pictures are released for exhibition upon certain definite dates announced ahead of time. First they are released in certain the first-run theatres in a few cities. A week or two later they are released in second-run theatres and they are after they are distributed for exhibition generally, being shown in different sections of the country at different times. Many very popular pictures are put on re-runs three or four times. American pictures are shown abroad six months to two years after they have appeared here.
In addition the producer has the right sale of the foreign rights to his pictures, which often yield as much as $100,000 for each picture.
There are more than 16,000 motion-picture theatres in the United States, of which 80% of the smaller variety, charging from 11 cents to 17 cents admission. This compares with approximately 17,500 theatres in the rest of the world. The number of new theatres under construction is rapidly increasing in there about 2,700 now in course of construction at an estimated cost of $150,000,000. A new motion-picture theatre was recently completed in New York with the seating capacity of 5400 and costing with land over $5,000,000. Theatres in this country have a seating capacity of more than 5,400,000. On the average this is filled several times daily so that about 16 million people may view motion pictures every day.
On the basis of an American population of 105,000,000 people, an average annual motion-picture expenditure of $7.15 for each person is indicated by the records of the Commissioner of Internal Revenue, which show that, for the fiscal year ended June 30, 1920, the 10% tax on admissions to theatres amounted to $76,733,647, which would indicate total box office receipts of $767,000,000.
After all American demands had been supplied more than 47,000 miles of Fillmore exported in 1920, to nearly 54 foreign countries. From 32,000,000 feet of film exported in 1913 the footage exported has increased to 175,000,000 feet in 1920. The total value of film exported since 1912 is approximately $60,000,000 and $12,000,000 worth was exported in 1920.
TAXES SHOW GROWTH
During the 12 months ending May 31, 1921, the government received as its tax upon admissions and upon the film rentals that the theatre owners pay to the distributing companies, $15,779,710 more than for the corresponding year ending May 31, 1920.
During March, April and May, 1921, the government took in from $400,000 to $800,000 more each month than it received for the corresponding months in 1920.
The new theatres now under construction, will, when completed, at 20 per cent to the demand for pictures which will maintain the best rentals ever known in the business.
Los Angeles theatres, including the big first-run houses only, actually need on the basis of their present and future requirements, 784 pictures in a year and the market from all sources promises to produce not possibly in excess of 550 with one-fourth of the output unfit for the larger institutions. This situation means higher rentals for pictures and spirited competition to get them and
THE RETURNS RECEIVED FROM SUCCESSFUL MOTION PICTURES ARE ENORMOUS, A CONSIDERABLE NUMBER HAVE EARNED OVER A HALF MILLION DOLLARS; SEVERAL AMONG THEM "THE KAISER, THE BEAST OF BERLIN" OVER $1 MILLION. ONE FEATURE PICTURE NOW SHOWING, HAS, IN THE NINE MONTHS SINCE ITS RELEASE, EARNED NEARLY $2,200,000.