Boxoffice - Feb. 17, 2014

: February
16MM COMPETITION INTO DISTRIBUTOR LAPS;
INDIANA EXHIBITORS PRESENTING EVIDENCE
Showmen Appealing
^4ajo^s to Prevent
Further Inroads
to
Indianapolis—The fight to eliminate
6mm projection of major and independnt
product has been taken directly to the
listributors by the Associated Theatre
niievs of Indiana in a letter addressed to
he top industry executives.
"Conservatively" estimating that narrowauge
films were projected commercially
n 150 towns last summer by itinerant
howmen. the Association points out that
29 established film theatres were oper-
ting then in the state of Indiana. It
alculates the screenings drew from 500
1.500 people per show.
ATOI charges that the screenings are
direct competition to established theares
1
and that many films are being sup-
lied by major and independent distribu-
Drs and producers.
Tlie appeal was sent to the following;
Harry Cohn. Columbia: Nicholas M.
chenck, Lcew's. Inc.; Barney Balaban,
aramount; Leo Spitz
V), RKO Radio: Sidney R. Kent, 20th
entury-Fox; N. J. Blumberg, Universal:
[. M. Warner. Warner Bros.; Murray
ilverstone. United Artists, and W. Ray
ohnston. Monogram. Republic is said to
ave been omitted because company ofcials
recently advised ATOI the firm
as no longer making available features
)r 16mm reduction.
Tlie letter follows (Capitals and other
aiphasis are in text of the letter)
BUREAU PICTURE
Reproduction of an advertisement distributed
in the Indiana territory on
Wmn films.
Photostatic copy of a sales letter on
l&mm films as presented to major
distributors by ATO of Indiana.
"During the 1939 Summer season Indiana
theatre owners, with thousands of
dollars invested in their buildings and
equipment, as well as years of hard work
in building their business, were beset with
a most unfair type of competition, that
of the 16 MM circuit operator.
"This competition was best described in
an article appearing in the FILM DAILY
of Wednesday, May 24th, 1939, a reprint of
which is enclosed herewith. The fact that
one, LeRoy Dennis of Wabash, Indiana,
is mentioned in this article as operating
eighteen circuits, each circuit serving six
towns each, with a weekly show, is no reflection
on Mr. Dennis personally, as there
were dozens of other operators in Indiana.
"There were some 429 legitimate theatres
in operation in the State of Indiana
last summer and it is conservatively estimated
that 16 MM movies screened by
itinerant showmen were shown weekly
in approximately 150 towns. The attendance
at these showings ran from 500 to
1,500 people. Some of the showings took
place in towns where there were already
legitimate theatres established and others
where there were not.
"These screenings were in direct competition
to legitimate theatres as 90 7c of
them were held within 8 to 12 miles of
an established theatre. This year the
itinerant showmen are ready to break into
big business from all indications. Several
weeks ago merchants throughout the State
of Indiana received a letter and handbill
on R.K.O.'s 'RIDING ON AIR' and Columbia's
'THE CALLING OF DAN MAT-
THEWS,' photostatic copies of which are
enclosed.
"You will note upon reading the Dennis
Produce Ads Promising
Major Company Fare
On Narrow Gauge
Film Bureau letter that they are operating
much in the same manner as your
local exchanges. We refer you to Sections
1 and 2 of Mr. Dennis' letter. Also of considerable
interest to you. as a Producer,
should be Paragraph 3 in which Mr. Dennis
offers to supply a full length feature
and short subjects for a ninety minute
show for the small sum of $7.50 or approximately
what the average established
theatre would pay for a one reel short
subject.
"Also, please note in Mr. Dennis' letter
that he suggests to the merchants if they
have no projector, he can supply them
one.
"The fact that the handbills which were
sent out only referred to Columbia and
R.K.O. pictures is of no special significance,
as Mr. Dennis is thoroly capable
of supplying feature releases on 16 MM
film of the product of a number of other
major companies also.
"The problem of 16 MM competition
has been discussed many times by the
Indiana exhibitors and we fully appreciate
that its menace is enlarging year by year.
It is our sincere hope that you. as a Producer,
will not continue to ignore the
evidence set forth and allow this situation
to get beyond control.
"We would appreciate hearing from you
on the matter,"
f< DENNIS FILM BUREAU PICTURE
GUY ^V OM A^^
KIBBIE
FLODENCE
Another sample of the kind of advertising
circulated for 16mm films in the
Indiana territory and forwarded by
Associated Theatre Owners of Indiana
to major distributors.
3X0FFICE :
17, 1940