Boxoffice-October.01.1955

FOREIGN GOVERNMENT REINS
RAISE HAVOC WITH FILM TRADE
More Exist on Admissions
Than on Rentals; Variety
Of Other Restrictions
By SUMNER SMITH
NEW YORK—Government controls of
the film industry in foreign countries reach
out in as many directions as the tentacles
of an octopus. Here, there and everywhere,
often undergoing revision, they constitute
a source of headaches for American film
men and the native film talent.
SPOT SURVEY IS MADE
A spot survey of foreign countries, based on
information in the files of the Motion Picture
Export Ass'n and major companies, has revealed
some interesting facts. Perhaps of outstanding
interest is the fact that there are
far fewer controls on film rentals than on
admi-ssion prices. Here is a breakdown:
Rental controls: Britain, in an indirect
way (that will be explained) ; France,
Italy, Norway, in a limited way; Sweden.
No rental controls: Germany, Japan,
Australia. India, Mexico, Argentina, Brazil,
Bolivia, Chile and Israel.
.Admission price control: Britain (indirect),
France, Sweden, Mexico, .Argentina,
Brazil, Bolivia and Israel. No admission
price controls: Italy, Germany, Norway.
Japan, Australia (one exception), India
and Chile.
Let's look first at the important British
market. While there are no official government
controls on film rentals, the Cinematograph
Elxhibitors Ass'n has recommended
a top of 50 per cent on percentage pictures,
and its recommendation carries weight. As
to admi.ssion price control, at first glance
there doesn't seem to be any. However, the
entertainment tax is in effect a control, since
it scales sharply upward as admissions are
increased. It is said to make admissions over
12 shillings ($1.58) prohibitive. So you can
say there are controls on rentals and admissions.
SITUATION IN FRANCE
In France there is a rental restriction in
that French law says rentals to all but the
smallest theatres must be on a percentage
basis. As for admission prices, they are
limited by the government, except in theatres
where the highest price Is about 29 cents
or less. That's a pretty low admission, so
control is widespread.
Now Italy. Rentals are controlled at 40 to 50
per cent, except for exceptional widescreen
pictures which are freely negotiable. There
are no admission price controls. However, admission
prices here are very low, with varying
scales depending on seat location in the
house, even in de luxe first runs.
Norway has limited rental controls. There
the Industry is run by an exhibition monopoly.
There are no admission controls.
Sweden? The answer Is yes. The maximum
rental in Stockholm first runs is 50 per cent
and elsewhere 45 per cent, with a minimum
Rentals Control Interest
Motivates Global Survey
With federal control of film prices a
goal of Allied States Ass'n, BOXOFFICE
presents a report on how the film industry
is controlled by goverimient in
other parts of the world. As some opponents
of film rentals control have raised
the point that if rentals are controlled,
what could prevent admission prices from
being regulated by government edict, the
report includes information on countries
where ticket prices are set by the government.
of 30 per cent. Admission prices are also
controlled.
Now those countries where there are controls
on admissions but not on rentals;
Mexico City and environs, from which, by
far, the greater part of Mexican film revenue
comes, limit admissions to roughly 45 cents.
It is a political limitation that has been
fought vigorously, but unsuccessfully, by both
foreign and local film interests.
Argentina has controls on admissions and
.so do Brazil and Bolivia. Israel has a modified
admission control of 20 per cent of theatre
seats at a fixed price.
The existence or non-existence of government
controls on rentals and admissions tell
only part of the story of government supervision.
Controls are frequently spotlighted in
statements by the foreign department heads
of the major companies. At the recent Miami
convention of United Artists. Arnold M.
Picker, vice-president, .speaking of Latin
America, said currency devaluation and government-fixed
admi.ssion prices have cut
profit. He cited Chile where local receipts
have been running 54 per cent ahead of 1954,
but the dollar return has lagged 52 per cent.
He gave the Brazil figures as 16 per cent
ahead and 43 per cent behind. Latin America
accounted for 25 per cent of UA's total overseas
receipts in 1953; this year it may be less
than 20 per cent.
Ben Cohn, Universal-International as.sistant
general foreign manager, back from a worldwide
tour, recently made similar statements.
Al Lowe, U-I Latin American head, described
the difficult situation there. Such statements
are common. Free trade doesn't exist. There
are local economic reasons, of course, but it
is difficult to stop a government finger from
dipping into a luscious pie once it's tasted.
So:
Britain restricts remittances to foreign distributors.
There is an exhibition quota of 30
per cent of first features to insure the showings
of British films. There is censorship by
private groups with the encouragement of
the government.
France hii-s remittance and dubbing restrictions.
There is an import quota and there
in an exhibition quota providing for showings
of French films for four weeks in every quarterly
period. There is also government cen-
.sorship, but it Is not strict .
Italy and the U. S. have reached a "gentlemen's
agreement" on a voluntary limit on
imports, but it allows only theoretical freedom
of action. Remittances are controlled. An
exhibition quota provides for the playing of
Italian features 20 days a quarter, ItaUan
shorts for at least half of the year and newsreels
the other half. Theatres pay an annual
tax according to size and location, and there
is a 30 per cent turnover tax.
Germany imposes another "voluntary" import
quota and there is a dubbing tax. A
tacit understanding calls for percentage deals.
There is an admission tax of 20 to 30 per
cent, which is four times higher than before
the war.
Norway has remittance control, an admission
tax of 40 per cent and government censorship.
SWEDISH TAXES HIGH
Sweden does not officially limit imports,
but tliey can be controlled as licenses are required.
There is no exhibition quota. The
admission tax is 60 per cent of the net price,
of which 75 per cent goes to the national
government and 25 per cent to the local
municipality. There is government censorship.
Japan limits imports and remittances.
There are no admission controls, but there
a 50 per cent national tax on admissions.
is
Australia has an indirect limitation on imports,
an exhibition quota and government
censorshp. Although the national government
has ended collection of admission taxes, they
are still collected under local option in western
Australia and the state of 'Victoria. There
are admission controls only in the state of
Victoria.
India has import and remittance controls
and censorship. While there is no government
price control, distributors seek uniformity.
There is no exhibition quota except
that exhibitors are expected to show government
propaganda films. There is no government
admission tax, but there ai'e state and
municipal taxes varying from 25 to 40 per
cent.
Mexico exercises indirect import quota control
through the issuance of import licenses.
There is no screen quota. A tax of 16 per cent
is levied on gross theatre receipts in Mexico
City and environs, and there are similar taxes
of 10 to 20 per cent elsewhere.
Bolivia restricts remittances, has no exhibition
quota, censors backed by the government
and an admission tax of 45 per cent.
FILM QUOTA IN BRAZIL
Brazil licenses imports, has an exhibition
quotii, supports censors and imposes a federal
tax of 10 per cent on admissions, plus municipality
taxes of 10 to 15 per cent.
Chile controls remittances, has no exhibition
quota, goes in for censorship and imposes
an admissions and turnover tax of 31 per cent.
Israel controls imports and remittances,
censors and has an admissions tax of 100 per
cent in Tel Aviv and Haifa. 83 per cent in
Jerusalem and 80 per cent elsewhere.
Argentina has import license control and
demands a censorship permit before a picture
can play. Native product gets percentage protection
and there are high admissions taxes.
16 BOXOFFICE October 1. 1955