FILM BUSINESS

Evening Post, Volume CXVII, Issue 114, 16 May 1934, Page 5

FILM BUSINESS

GROWTH OF INDUSTRY

BRITISH ADVANCE

EFFECT OF THE QUOT/l

Interesting observations, on Ifho growth of the motion-picture indusrt.Ty and the competition between Britjish and American producers were made by the Chief Inspector under the Cinematograph Films Act (Mr. E. GirlijngButcher) in a memorandum he 'prepared for tho recess Parliamentary Committee which investigated the ' industry and whose report was published yesterday.

"Before the war," said Mr. Girl'ngButcher, "most of the pictures sli'p\y_ iv New Zealand were produced in G ieat Britain and on the Continent, althi iugU even in 1913 and 1914 the Americans 'were making rapid strides in the world markets. During the war years production practically ceased in other countries, and the American producers assisted in the early stages by . tho highly skilled technicians set frtje by the closing of the Continental studios, had a complete monopoly of tho filmproduction industry. This monopoly was strengthened by the change lvhicli was taking place in 'the industry ;itself. By the end of the war the short IOOOf t to 3000 ft pictures which forme fl the programme in the early year; j had given .place to tho 'feature,' or .longstory picture, which now fornn id the main portion of every programme—tho short pictures being only regar fled as 'supports' of comparatively little exhibition value. The buoyant ijevenucs of the war period enabled the.j American producers to build up thei t capital and -establish their industry oi i a scale previously undreamt of. Large t salaries were paid to authors, dircctoirs, and actors, and enormous sums s pent on both tho production side (in the setting, dresses^ etc.) and on ad vcrtising. "The strength of tho Amei.rican producers' position was still father increased by the development which took place on tho exhibitio d side of the industry in America. T tie surplus profits of the war years wijro used througn subsidiary companiei i in building or buying up control of all the principal theatres in 'key' in America and Canada, uhtil| by 1919 the American major produi iing companies controlled not only lie production, but tho renting and .' exhibition of _ films as well throughout America. This policy was gradually being extended to other countries, / and it is not to bo wondered aj; that; during tho immediate post-war .years jthe British and Continental film producers made little progress. They wor 6 faced with tho problem of re-enterin:f a business which had developed in technique to such an extent as to bo practically a now industry. The American market j which was' by itself sufficient to pay the American producers' • costs, was closed to them, and the American control of many foreign tl'ieatrcs meant that even in their nafjbnal market their operations were restricted. A NATIONAL INr JfUSTKY. "This position was recognised with some concern by the, '; British and Continental Government! j. It was realised that, in addition to> the fact that tho American control m cant that the trade was a one-sided aine, it was desirable on general grounds, and apart from purely financial considerations, to | encourage a national 'ffilm industry. Legislation to encourage local filmproduction was passed in several Continental countries, and fthe matter was considered at the 192 Ci Imperial Conference at which tho quota principle was approved. Tho E ritish Cinematograph Films Act, whio!k was passed in 1927, provides that -tlie renter- shall 'acquire' for purpose/ \] of renting and the exhibitor shall o rfiibit, a proportion of British films fi uereasing from 5 per cent, to 20 per clwjt. over a period of years. A correspc lading New Zealand Act wa.s passed iia 1928. The immediate effect of tho British Act was to give a - ; very coniijiderable impetus to British film-produc ifion, but to what extent it would have been permanently efEectivo cannot now be determined, as tho whole position in the production field was completely altered by the introduction of the 'sound' (talking) picture in 1928. T-ilds class of picture and the necessary t eproduction equipment was perfected ■in America, and that country naturally received , the benefit of the. high '^rentals obtainable in foreign countries ;while 'sound' was a novelty. The'spimd picture has tho disadvantage as compared with tho silent film of an SSppeal limited to a great extent to p>eoples speaking ono language, and to ai lesser extent ono dialect of the language. The speech of the early American 'talkies,' for instance, \yas so die finitely, American in intonation and eh jiracter that after tho novelty had Trorn off these films met with adverse c eminent from British audiences. ' ' BRITISH FUJMS IN DEMAND. "There were therefore several factors now workin.fi to assist British production. Firs;VJEy, the quota legislation -was in force; ' secondly, the public preferred English .speech; and, thirdly, it was possible t<> produce acceptable sound pictures at; a cost lower than the American product and within the means of tho lai.-jjjer British producing companies. Tho (result of the operation of these iri ftuences is illustrated by the position iii Now Zealand where .the proportion oJ? British films receiving: general 'relciase' has risen from about 5 per centi. in 1928, to an estimated proportion: of 36 per cent, for 1934. Despite fthe advance of tho British producer { in recent years both with respect to , the number and exhibition value of the pictures made, the American p j-oducer has been and still is an essential if not the all-im-portant factor ;in the industry in British countries j. About 75 to 80 per cent, of American films aro made by one or other of ,-ivhat are known as the seven 'major' producers—Paramount (late Famous ' Players-Lasky), Fox, Metro-Goldwyn- Mayer, Warner Bros.First National, Universal, E.K.0., ana United Artists., These companies each produce on th c average about fortyfive feature fi] jns every year, and, in addition, tho ipews gazettes, comedies, cartoons, and other short films which make up the balanco of the ordinary theatre programme.

"Their filnis aro distributed or ronted' in A Djerica and most othor countries by ■ subsidiary companies which are in cjDEect branches of the producing concer us; and, in addition, most of them control through other subsidiary companies chains of theatres in America and other countries. Tho pictures made b; j tho minor American producers (the lc lading company—Columbia —is rapidly approaching the status of a 'major', producer) are mostly distributed in the- markets outside the United States of Ajji erica by independent renting compan fees with local capital (in New Zealanjd, Greater Australasian Films and Celebrity Films), and in a few cases t ho major producing companies buy the : ; foreign rights of individual pictures an> & distribute them under their own trade-i nark. PROD UCTION IN BRITAIN. "In Great Britain most of tho pictures produced are mado by companios

independent of the American producers. The two largest concerns aro British International Pictures (Elstree), and Gaumont-Gainsborougli (Shepherds Bush and Islington). Both are affiliated with oxtensivo chains of theatres in Britain (British International Pictures with Associated British Cinemas, and Gau-mont-Gainsborough with tho Gaumout Theatres), and both produce sufficient films to constituto what is known as a 'service'—sufficient film to supply weekly screenings for an exhibitor over the major part of the year. In 'addition to these two principal producers, there are a number of smaller companies which operate film studios, including British aud Dominions (Boreham Wood), Associated Talking Pictures (Ealing), Twickenham Films (Middlesex), Warner Bros.-First National (Teddington), British Instructional (Welwyn), British Lion (Beaconsfield), Nettlefolds (Wal-ton-on-Thames), and Sound City (Shepperton). All the abovo firms produce feature pictures of average or better quality, and, in addition, thero aro several producing companies such as London Film Productions, Sterling, Windsor, Welsh-Pearson, Ideal, and Pro Patria, which produeo pictures in one or other of the studios mentioned.

"In addition to the feature pictures produced by the companies referred to above there are also produced in Britain a considerablo number of what are known in the trade as'quota' pictures. As stated above, the' British Act requires all renters to 'acquire' hi each year a definite proportion of British films, and in order to provide nominal compliance with this obligation many of the America* renters make arrangements with the smaller British companies to make the cheapest films which can be produced, the usual basis of cost being in the vicinity of £.1 per foot. -These films have naturally very little exhibition value even in Britain, where there are large industrial centres where certain types of cheap comedy film have an appeal, and where double-feature programmes are usually. sercencd, and it is possible for a good feature film to 'carry' with it one of considerably less value. Many of these films are not even released, but-kept on the renters' shelves, and they are quite unsuitable for the New Zealand market, where single-featuro programmes are mostly shown and mixed audiences aro the rule. CONTINUANCE OF QUOTA. "Tho reasons for this American action are, of course, in tho main economic, in that it pays the American, companies to obtain the maximum revenue possiblo from their homo productions rather than. to purchaso high-class British films, but it is probably not taken without some realisation of the tendency for crude pictures of this type to discredit British production generally. It was foreseen when the Act was under consideration that some such result was possible, but it was considered that an artificial stimulus was necessary for the reinstatement of the British production industry. It would appear from the trade pross that it is tho considered opinion of tho major portion of all sections of the British industry that, despite such anomalies created by the 'quota' requirements of the Act, tho latter have been effective for the main purposo, and the continuance of tho Act is still desirable, although it must be admitted that there has been somo agitation for its amendment, mainly with tho object of eliminating the poor-class 'quota' films referred to in the preceding paragraph. "Probably not moro than two-thirds of the pictures produced in Britain are imported into New Zealand, and most of them aro distributed or rented by companies having Australian or New Zealand capital. The principal exception is tho Gaumont-Gainsborough service, whoso pictures havo been distributed in the past by British Dominion Films, Ltd., but for 1934 will be controlled by the Australian subsidiary of the Vox Co. This latter company has an extensive interest in the Gaumont chain of theatres in Britain, and the local distribution is part of an arrangement which provides for the reciprocal release of the British pictures in America. British International Pictures aro distributed locally together with the productions of three of the smaller producers, by British Empire Films, Ltd., and most of the better-class productions of cho other small' producing companies are combined into a 'service' by British Dominion Films, Ltd. (at present operating through Greater Australasian Films). Sound City films are distributed by Australia aud New Zealand Pictures, and a few other British films, including some of the 'quota' pictures, referred to above, by the American-owned renting companies. EFFECT OF DEPRESSION. ''Tho British producers have on the wholo weathered tho world depression very, satisfactorily, but. tho . result in America has been in most cases to dissipato the bulk ;of the enormous paper profits made in tho post-war years and during tho 'talkie' boom period. A number of the producing companies havo been in liquidation, and most of them appear to be more or less in financial difficulties. The reduced audiences in America'consequent on the depression have made the theatre chains largely unprofitable, and at the present time tho whole of the American industry is in a semi-chaotic condition. Despite this fact, a reasonably high standard is being maintained in the quality of the pictures produced, and although a proportion of tho British films are comparable with the best productions of any country, the technique and artistry of American pictures is generally considered to bo on tho wholo superior to tho averago British film. The latter has,'howovcr, a special appeal to British audiences owing to its national spirit and associations, and is particularly successful in New Zealand." '