Boxoffice-May.21.1979

AI Film Rentals Dip
47 Percenl in 1978-79
BEVERLY HILLS — American Inlcinalional
Pictures reported revenues of $45.48
million and a net loss of $L521 million (63
cents per share) lor the fiscal year ended
March 3, 1979.
For the fiscal year ended February 25,
1978, revenues were $5L228 million and
net income including extraordinary income
of $1,485 million (60 cents per share) was
$3,301 million ($1.34 per share).
Chiefly responsible for the net loss was
the decline in theatrical film rentals. Domestic
and foreign theatrical film rentals
were down 47 percent and 39 percent respectively,
while nontheatrical and other
film rentals remained at the same level as
last
year.
Television revenues were up 118 percent
over last year aided by revenues realized
from licensing of television programming
aimed for exhibition during non-prime time
hours.
However, this record-setting performance
did not offset the reduction in theatrical
rentals.
Reflecting its continuing excellent performance
in television, the company reported
that it will begin the new year with
$24 million of television license agreements
and commitments. This figure is not reflected
in the financial statements because the
films involved are for future telecast.
AI will seek to expand its development of
non-prime time television programming.
This, coupled with the excellent audience
to reception the theatrical release of "Love
at First Bite" should result in a "positive
start for the new year," according to the
company.
Anti-Blind Bid Bill
Is Stalled in Texas
AUSTIN. Tex—Anti-blind bidding legislation
faces an uncertain future in Texas,
pending any action or nonaction, by the
House calendars committee, where the bill
appears to be stalled.
Anti-blind bid legislation passed the Texas
Senate, 26-0, on April 11 and the House
Committee, 9-0, on April 24. Many observers
feel that Texas is a crucial swing state,
as blind-bid legislation being passed or killed
here could affect
the future of such legislation
in other states.
The calendars committee schedules all
bills for debate on the House floor. If the
bill is not moved out of committee by the
end of this month, anti-blind hid legislation
will die in Texas.
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BOXOFFICE :: May 21, 1979
Effects of California Gas Shortage
On Moviegoing Still Undetermined
By RALPH KAMINSKY
West Coast Editor
HOLLYWOOD — Gasoline shoitages
.Southern California are having a •crunch"
effect on theatre attendance.
One chain reports a 30 to 35 percent drop
in business, while one of the biggest operators
of drive-ins declared candidly, "We
definitely are hurting."
But, as even these spokesmen point out,
too early to push the panic button."
"It's
Two other factors complicate the gasshortage
picture:
A million people drove to the Los Angeles
County beaches Mother's Day, Sunday,
May 13. The holiday, coupled with the
sunny weather, had an adverse effect on
theatre-going.
A survey of key circuits in the Los Angeles
area produced a consensus that there
are too many variables to judge whether the
shortage is having a definite effect on theatre
attendance.
Bob Selig, speaking for Pacific Theatres,
asserted, "We haven't reached the point
where we are upset, but we definitely are
hurting."
'Business Generally Off
Selig could give no comparative figures
on the drop in attendance but said, "Business
is generally off" at both hardtops and
drive-ins. "Our managers are beginning to
show a pronounced sensitivity to the
crunch," he said,
Bruce C. Corwin, president of Metropolitan
Theatres, reported a 30 to 35 percent
reduction in business. He attributed a part
of the decrease to the "great hot weather"
that sent thousands to the beaches.
William Hertz, vice president of operations
for Mann Theatres, reported a lowering
in attendance but pointed out that the
month of May is "a normally low-grossing
period." Other circuit spokesmen also men-
be able to judge its effect really until a big
blockbuster opens across the country."
That, he said, would permit an analysis of
the difference in grosses, if any in areas
where the gasoline shortage is not as acute
as in California.
"All this may promote a spirit of togetherness,"
Hertz noted. People may begin sharring
rides and couples may begin double
dating, he said,
"We may exploit that aspect in theatre
advertising, if the shortage of fuel continues
and the impact becomes more evident." he
said.
in
Selig thought that Pacific I'hcalrcs might
consider mounting an advertising and promotion
campaign reminding the public that
movies are still the nearest entertainment
in your neighborhood." Car pooling, especially
for drive-ins, he said, also could be
emphasized.
Antitrust Suit Filed
By 7 Major Circuits
LOS ANGELES—A group of major exhibitors
has filed a federal antitrust suit
against the MPAA and seven major film
companies, alleging violations in trade practices
and discrimination in film ratings.
The suit was filed May 1 1 in Central District
of Calif. Federal Court in Los Angeles
by American Multi Cinema, Plitt Theatres,
Mann Theatres, United Artists Theatres,
Pacific Drive-In Theatres. Harry Mace Co.
and Sero Amusement. The suit charges that
the major distributors "in combination,
completely own, operate and control" the
distribution of motion pictures throughout
the United States.
Named as defendants in the action, besides
the MPAA, were Warner Bros., Paramount.
Universal, 20th Century-Fox, United
Artists, Buena Vista and Columbia.
The circuits are also bitter about the film
rating system, alleging that the defendants
"discriminate in favor of members of the
MPAA and independent producers who distribute
their pictures through members of
the MPAA by using a double rating standard
. . . rating such motion pictures to enhance
their boxoffice appeal and effectively
discriminating against the producers of
film product not distributed by the defendants."
The plaintiffs also charged the major distributors
tioned the May drop-off.
with deliberately manipulating the
Hertz and others pointed out that the ratings of blind-bid pictures, this creating
good pictures continued to draw big grosses a false impression and misleading exhibitors
while the lesser films suffered. Leammie into booking films that they otherwise
Theatres reported that "The Innocent" set
a record gross of $26,733 in its first week
might have agreed to rental terms on had a
•fair and objective" rating been issued.
at the Music Hall; "Manhattan" grosses were
"going into the stratosphere" and "A Little
Romance" was also breaking records.
"The gas crunch is an unknown quantity
at this time," Hertz observed. "We won't
Filmways Reports Seventh
Year of Higher Revenues
NEW YORK — Filmways Inc. reported
its seventh successive year of higher revenues
and net income. Revenues for the fiscal
year ended Feb. 28, 1979, were $153.-
412,000 compared with $140,566,000 in
1978. an increase of 9 percent. Net income
more than doubled to $7,842,000
from $3,524,000 last year, resulting in a
24 percent increase in income per common
share to $1.64 against $1.32 last year.
For the fourth quarter, revenues rose to
$37,686,000 from $37,275,000 last year,
while reported net income advanced by 38
percent to SI. 304.000.