PICTURE THEATRES

Evening Star, Issue 21722, 17 May 1934, Page 5

PICTURE THEATRES

SHILLING MINIMUM ADMISSION PRICE CUTTING AND WAGE DEPRESSION [Special to t. e ‘ Star.’] WELLINGTON. May 16. The clause in a film distributor’s contract providing that not less than a shilling should be charged for admission to the theatre was the subject of considerable discussion in Parliament last session, and the Parliamentary Committee of Inquiry into the picture industry was requested to report whether it was desirable to make a, modification in that provision of the hiring contracts. It is of opinion that the shilling minimum should not he universally applied, and recommends that the proposed standard contract should stipulate a minimum of sixpence. “ The committee,” states the report, “ sees no objection to a higher minimum price being charged for the better-grade pictures, or for not exceeding 50 per cent, of the films rented to any exhibitor on a percentage basis, provided such differentiation is jointly approved by the renters’ and distributors’ organisations. In the event of the parties failing to agree, it is recommended that the minimum be reduced to 6d without qualification.” A survey of witnesses’ opinions is given in the report, and it-is stated that most of the witnesses who are exhibitors were strongly in favour of some modification of the clause, particularly with reference to the Auckland suburban areas. Several representatives of the film distributors were opposed to deletion or modification, because they believed it would result in a pricewar’, though one of them proposed a scheme under which registered unemployed and their families could be admitted on specified days at half rates. This plan, however, would, in the committee’s opinion, lead to general breach of minimum price arrangements owing to the difficulty of checking those persons genuinely entitled to the concession. An Auckland exhibitor, Mr H. Hayward, who was a pioneer of the industry in New Zealand and who operates a chain of suburban theatres, gave evidence that the number of persons admitted on “ guest nights ” was greater than the aggregate admissions on the nights when a shilling minimum was charged. His general view was that a reduction to below a shilling would result, particularly in the cities, in a market being reached which was not at present available to the industry, since many persons apart from the unemployed could not afford regular payments of Is, and the tendency was for those people to stay away altogether. Australia and New Zealand, it was shown, are the only countries where a standard admission charge is provided for in film contracts, and that this charge is considerably higher than the admission prices in the United States and Canada, where they range from sd, or in England 4d. including tax. There was a period when the minimum admission in the principal New Zealand theatres was Is 6d, and it was cot reduced to Is until the effect of the depression and the wage cut had been evidenced in city theatre business. “ An interesting sidelight on the depression was given by the evidence in regard to this clause. It was stated that exhibitors had noted that individual patrons who had previously patronised the 3s 3d and 2s 9d seats now patronised the 2s 2d and Is 6d seats, and the previous patrons of these sections arc now found in the minimum price Is seats. It has been found necessary to increase the number of seats available at the minimum price to meet the demand, and to reduce the maximum prices in most of the theatres.”