CONTRACTS FOR FILMS.

New Zealand Herald, Volume LXVII, Issue 20725, 19 November 1930, Page 13

CONTRACTS FOR FILMS.

THE CONTENTIOUS CLAUSE. POSITION IN AUCKLAND. "SPOT BOOKING" FAVOURED. Considerable resentment, is bring expressed among .Auckland motion picture exhibitors at. tho new clause which film distributing firms havo inserted in contracts, designed as a safeguard against possible developments or adjustments in taxation as (ho result of tho inquiry into the film fnido to be held early in (lie new year. If the distributor is of tho opinion that he is being prevented by taxation from making a reasonable profit, tho clause empowers him to terminate contracts on 30 days' notice to the exhibitor without incurring any liability to the, exhibitor. When the acting-Prime Minister, Hon. E. .\. Ransom, announced early Lust week that the disputo between the (Jovcrnmcnt and the distributors concerning taxation bad been settled, the exchanges in Auckland immediately began to prepare for a resumption of ordinary business. For some months previously they had had to content themselves with the meeting of existing contracts. It is only within the past few days that instructions were ro ceivod to insert the.contentions clause into all new contracts which were being prepared. However, it is still a little early for developments to occur in the matter of signing new contracts. November is generally a comparatively dull month for most of the exchanges, as their activities are principally confined to tho supply of pictures under contracts just about to expire. A little ''spot booking" is done—tho purchase by exhibitors of new films as they come to hand—and tho manager of one Auckland exchange said yesterday that ho bad sold a few pictures through this channel on Monday. New contracts are generally not mado until December or January. The opinion that the new clauso in contracts is not necessary in view of recent developments in film buying was expressed yesterday by Mr. T. A. O'Brien. "Tho whole trend of tho business is awav from 'blind booking,' whereby exhibitors signed a contract to buy 52 pictures a year from one distributing firm," he said. "This principle operated fairly successfully in the days of silent, films, but since the advent of talking pictures tho system of 'spot booking' has been inoro extensively followed. "Naturally, an exhibitor wishes to be assured of a steady supply of pictures, but ho does not wish to buy a pig in a poke. If possiblo, he prefers to seo and hear a picture before ho buys it. 1 think that during ihe coming year pictures will bo purchased mainly in small groups of about 10 or 15 films as they come to band. 1 take it, that, most exchanges aro quite willing to .sell film in groups. They would handle approximately tho same volume of business on terms ■which would probably bo more favourable to all parties concerned. In view of this, I hardly think that, tho clause will operate. It, is designed to deal with a very remote contingency, in addition to which some doubts have been expressed as to whether it would actually stand the test of law."