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HOW FAR ON DIVERSIFICATION?
Film Company Investments Outside
Industry Bring a Big Question
By SUMNER SMITH
NEW YORK—Just how far are motion picture
companies going in the direction of diversification?
The question is a pertinent one at this
time because of the news that Paramount
has acquired Dot Records, which did $6,000,000
in sales in 1956, and because of rumors that
other companies are seeking additional sound
investments outside the industry.
Perhaps the question can be answered fairly
accurately by mid-year. Right now, the onlooker
has to form his own opinion from the
data at hand.
Has any particular pattern emerged as the
result of acquisitions already signed, sealed
and delivered? One, of course, has to do
with entry in a serious way into the production
of entertainment and commercials for
television. That's clearly evident.
HOT RECORD COMPETITION
Then there's a trend rather than a pattern
because any further expansion can run into
road blocks. That concerns the record industry.
There's some hot competition on between
motion picture companies. And companies
not directly in the motion picture field.
Paramount, with Dot Records, is, of course,
the newcomer. Already in the field are Loew's
with MGM Records, Am-Par Records, a subsidiary
of American Broadcasting-Paramount
Theatres, and Decca Records, which is also
in the motion picture business through its
80 per cent interest in Universal-International.
RKO Unique right now is waxing
"Romance Is a Silken Affair" from the film
of that name for February release. All of
them have the same idea. Songs in a motion
picture sell the record and then the
record sells the picture.
Are roadblocks making further expansion
in the field unlikely? There are three additional
and powerful ones—Radio Corp. of
America, Columbia Broadcasting System and
Capitol Records, owned by Broadcast Music
Industries, a British electronic company.
They aren't for sale.
Motion picture companies are also active
in the sheet music field. There is Paramount
with the Famous Music Co. and Paramount-
Roy Rogers Music Co., Loew's Big Three
Music Co. and Warner Bros.' Music Publishers
Holding Corp., a wholly owned subsidiary
controlling some 50,000 copyrights.
ALSO LANDLORD BUSINESS
Records and sheet music are only two examples
of diversification. There is the landlord
business. Paramount owns and rents out
a large part of the Paramount building on
Broadway and Columbia has some outstanding
Fifth Avenue tenants for its new home.
Then there is National Theatres which is
constructing and leasing store buildings and
auto parks on hitherto unproductive properties.
Government contract.s make the electronic,
aeronautical and nucleonic fields lucrative
ones. There we find AB-PT with a 25 per
cent interest, lately acquired, in the Wind
Tunnel Instrument Co. of Boston. It already
had a one-third interest in Microwave Associates
of Boston and a 22 per cent interest
in Technical Operations of Arlington, Mass.
Incidentally, Western Union acquired the
same amount of interest in each of three at
the same time AB-PT bought in.
Paramount claims a $10,000,000 investment
in outside interests. There is its interest in
DuMont Laboratories, in International Telemeter,
an electronics concern which has a
toll TV device, and Chromatic Television
Laboratories with its Lawrence single -tube
gun for color TV which DuMont is now manufacturing.
The ABC division of AB-PT is in the radio-
TV broadcasting industry. Loew's has station
WMGM, Paramount has station KTLA in
Hollywood and, through its Canadian affiliate,
TV stations at Kitchener and Quebec.
Twentieth Century-Fox, besides its TV production
interests, has a 50 per cent interest
in the NTA Film Network.
Stanley Warner is offering the public
girdles, brassieres and antiseptics through
International Latex, AB-PT has a 35 per
cent interest in Disneyland Park, 20th-Fox
has De Luxe Laboratories and oil wells. Republic
has Consolidated Laboratories and the
Consolidated Molded Products Corp., which
is in the plastic molding business, and Walt
Disney Productions.
Disney's projects could furnish material
for an entire volume. There are wholly
owned subsidiaries which market and exploit
names, characters, music and other values
growing out of theatrical films, TV shows and
Disneyland, in which the producing company
owns 35 per cent. It licenses manufacturers
to produce Disney merchandise and issue
publications. It has its own phonograph
record label and Disneyland Records. After
films have shown in theatres or on TV, it
rents 16mm prints of some of them for
limited use to non-theatrical users.
There you ai'e. Probably some projects have
been missed. What does it all add up to?
What are the patterns and the trends, if
any? You be the doctor.
'Mom and Dad' Show Hit
Over Sale of Booklets
NEW YORK—The New York City Department
of Licenses Monday ill) ordered the
Central Theatre in Manhattan and the
Strand in Brooklyn to close for a week for
violation of their licenses to present only
motion pictures. Both have been showing
"Mom and Dad" and "She Shoulda Said No."
The action was based on the sale of booklets
on sex education dm'ing the show.
Ephraim S. London, attorney, representing
Fabian Enterprises, operator of the Strand,
and GMM Theatrical Pi'oductions, operator
of the Central, immediately obtained an injunction
in Supreme Court to restrain Bernard
J. O'Donnell. license commissioner, from
suspending the licenses. It was returnable
later in the week.
Kroger Babb, producer of "Mom and Dad."
called the commissioner's action "vindictive
and punitive." Maurice Maurer, manager of
the Central, said application would be filed
for a theatrical license which covers both
live and motion picture shows.
'Battle Hymn' Opening
At 3 Marietta Houses
MARIETTA, OHIO — Universal-International's
"Battle Hymn," Cinemascope film
based on the exploits of Col. Dean E. Hess
in World War II, opened at the Colony, Putnam
and Ohio theatres Thursday (14), after
almost three months of advance preparation.
Marietta is the home town of Col. Hess and
the opening was part of a two-day statewide
tribute to him on his homecoming.
Governors of two states, Hollywood stars and
at least 14 marching bands took part in the
parade celebrating the world premiere of
"Battle Hymn." Gov. Cecil H. Underwood of
West Virginia and Gov. C. William O'Neill of
Ohio, both former Marietta College faculty
members spoke briefly. Also on hand were
Rock Hudson, Dan Duryea, Jock Mahoney
and Ingrid Goude, featured player in the
picture, and Ross Hunter, producer, as well
as Dr. You Chan Yang, Korean ambassador
to the U. S., and Maj. Gen. Roger Browne,
commander of the First Air Force. Hudson,
who portrays Col. Hess in "Battle Hymn,"
was presented a Doctor of Arts degi-ee at
Marietta College's annual Founders Day
Thursday.
The National Broadcasting Co. network
program, "Monitor," and the Columbia
Broadcasting System's "The Personal Angle"
recorded highlights of the two-day celebration
for broadcasting the February 16 weekend.
New York City scheduled a two-day celebration
for the opening of "Battle Hymn" at
the Capitol Theatre Friday (15 1, to include
lobby appearances of Rock Hudson on opening
day and USAF's MARS special communication
equipment, permitting gratis messages
to service men in any part of the world
from patrons of the Capitol, Friday, Saturday
and Sunday (15, 16, 17). Barbara Atkins,
selected as "The Sweetheart of the Air Force,"
also was to be on hand at the Capitol.
British Academy Selects
'Gervaise' 1956 Top Film
LONDON — "Gervaise," the F'rench-made
film, has been selected by the British Film
Academy as the best picture in 1956, it was
announced here early this week. Starring
Maria Schell and directed by Rene Clement,
the film has not yet been released in the
U. S.
Other winners included Anna Magnani as
the yeai''s best actress in "The Rose Tattoo"
(WB), for which Miss Magnani won last
year's Academy Award in Hollywood; Eli
Wallach as the most promising newcomer to
movies for his role in "Baby Doll" (WB) and
"Gerald McBoing-Boing on Planet Moo" (Col)
as the year's best animated film. Americanmade
"On the Bowery" (Lionel Rogosin) received
an award as the year's best documentary
film.
Nigel Balchin received the award for the
best British screenplay for "The Man Who
Never Was." (20th-Fox), starring Chfton
Webb and Gloria Grahame.
Kathryn Grant
on Tour
HOLLYWOOD—Kathryn Grant went to
San Francisco to participate in the promotion
for U-I's "Mister Cory." She also was
scheduled to visit Boston, Detroit and Chicago
for openings in those cities.
18 BOXOFFICE :: February 16, 1957