"EVERY DOLLAR COUNTS"

New Zealand Herald, Volume LXXI, Issue 21716, 3 February 1934, Page 12 (Supplement)

"EVERY DOLLAR COUNTS"

EDICT, IN HOLLYWOOD STUDIO'S DIFFICULT POSITION British film exhibitors, on the whole are doing but the condition of the American cinema industry is deplorable, states the Daily Telegraph. The 12,000 cinemas open in the United States made during September October and November an average loss of from £1,750,000 to £2,000,000 a week. This debacle comes after the recovery in August which led to predictions of all-round better business. Actually the little boom, due, to expectations of a general trade improvement, mysteriously and suddenly collapsed, leaving the film industry more depressed than ever. "Poor business is general," states one film authority. " Exhibitors are 'frantic in their efforts Jto get' out; distributors are in a panic trying to collect sufficient for their own overhead and send back money to the studios for new pictures. " Studio heads aro confronted with a fiituation that is the teusest since pictures started, with nothing coming in and millions going out, and no -source 1;o draw on for new millions." The Wall Street,financiers ultimately controlling the industry blame Hollywood. They have'given orders for the most drastic economies yet known. The largest studio in Hollywood is said to have had a telegraphed order to cut down every single item of expense other than the salaries of people actually concerned in the shooting of pictures. Studios in general expect to cut salaries from 25 per cent, to 50 per cent, on all new contracts, and with outstanding pictures doing all the business and ordinary pictures bringing in almost nothing, production programmes are being reduced all round. The Universal studios have closed for six or' eight weeks to give time for preparation of material and the receipt of earnings on past productions, and ishe Fox and Warner employees have been advised that every dollar counts.