An economic study of the relationship between the large motion picture corporation and the independent producer Item Type text; Thesis-Reproduction (electronic) Authors Vance, Daniel John, 1943- Publisher The University of Arizona. Rights Copyright © is held by the author. Digital access to this material is made possible by the University Libraries, University of Arizona. Further transmission, reproduction or presentation (such as public display or performance) of protected items is prohibited except with permission of the author. Download date 10/10/2021 04:12:28 Link to Item http://hdl.handle.net/10150/347731 AN ECONOMIC STUDY OF:THE RELATIONSHIP BETWEEN THE LARGE MOTION PICTURE ■ CORPORATION AND THE INDEPENDENT ' PRODUCER by Daniel John Vance A Thesis Submitted to the Faculty of the DEPARTMENT OF DRAMA In Partial Fulfillment of the Requirements For the Degree of . MASTER OF ARTS . In the Graduate College THE UNIVERSITY OF ARIZONA 1 9 7 0 STATEMENT BY AUTHOR This thesis has been submitted in partial fulfillment of requirements for an advanced degree at The University of Arizona and is deposited in the University Library to be made available to borrowers under rules of the Library. Brief quotations from this thesis are allowable without special permission, provided that accurate ack­ nowledgment of source is made. Requests for permission for extended quotation from or reproduction of this manuscript in whole or in part may be granted by the copyright holder. SIGNED: APPROVAL BY THESIS DIRECTOR This thesis has been approved on the date shown below Peter R. Marroneyy Date" Professor of Dr; _________________ Ro^mary P. Gipson Date Instructor in Drama . COPYRIGHTED .BY DANIEL JOHN VANCE . • Q ill TABLE OF CONTENTS Page LIST OF TABLES o o o o o o o o o o o o o o o o o o o o ABSTHACT O O OO O OOOO.O O O O 0 O 00 000 0.0 o Vii Chapter I„ ECONOMIC BACKGROUND OF THE MOTION PICTURE INDUSTRY0 0 O 0 0 0 O 0 O 0 0 O O 0 0 0 0 . 0 ' 1 Nomenclature of the Motion Picture Industry 1 Economic History of the Motion Picture Industry. , . „ „ „ . „ 0 9 IIo . THE LARGE MOTION PICTURE CORPORATION AS SEEN THROUGH AN ECONOMIC REVIEW OF THE FILM HAWAII O O 00 O O O O 00 OO 000 O 0 O O- 89 Economics of the Large Motion Picture Corporation » ° ? * « « « * * * * » » * * 89 Economics of the Motion Picture Hawaii . 92 ' IIIo THE INDEPENDENT PRODUCER AS SEEN THROUGH ' ■ AN ECONOMIC REVIEW OF THE FILM LILIES OF THE j?IaLD 000 0 0 0 0 0 0 0 o o 0 0 0.0 0 118 IV. FUTURE INDUSTRY TRENDS AND RELATIONSHIPS. 126 APPENDIX As PART OF THE SCREEN PLAY HAWAII . = . 0 . 130 APPENDIX Bs REPRESENTATIVE ARTIST-EMPLOYEE CONTRACT 135 APPENDIX Cs ; FINAL MAIN TITLE CARDS FOR HAWAII, o . 158 APPENDIX Ds FILM SHOOTING SCHEDULE FOR HAWAII. „ .165 APPENDIX Es SCRIPT BREAKDOWN FOR HAWAII. '. ■ . 16? APPENDIX F s REPRESENT AT IVE C O S T A N D BUDGET ANALYSIS . FOR HAWAII 0. 0 0 0 0 o 0 0 0 0 0 0 0 0 0 169 APPENDIX Gs AGREEMENT., FOR.USE. OF PREMISES„ . 172 APPENDIX Hs CONTRACT REQUEST FORM. 177 V TABLE OP CONTENTS— Continued Page APPENDIX 1s SCREEN ACTORS GUILD, INC, MINIMUM FREE LANCE CONTRACT, , , , , , , , , , © , ' , 179 APPENDIX Js LETTER OF AGREEMENT , , , , „ , , . , , 181 APPENDIX Ks NOTICE OF EMPLOYMENT, NOTICE OF TERMINA­ TION, AND DISTRIBUTION OF TIME SHEET, . 184 APPENDIX Li A DAILY PRODUCTION REPORT FOR HAWAII, , 189 APPENDIX M 8 : CALL SHEET FOR HAWAII , , , , , , , , . 191 APPENDIX N 8 A TRANSPORTATION SHEET FOR HAWAII o , , 194 APPENDIX Os PARTIAL FINANCING AGREEMENT . , . ,: 196 APPENDIX Ps FINANCING AGREEMENT FOR THE LILIES OF ; THE__FEELD , , , , , , , , , , , , , , , 198 APPENDIX Q 8 DETAIL BUDGET INDEX. PAGE FOR THE LILIES OF_>T^E_iFIELD, , , , , , , , , , , , 237 APPENDIX Rs FINAL PICTURE COST FOR THE LILIES OF THE X4 I ELD 0 0 O O , 0-0 0 O O 6 0 -0 0 . 0 239 LIST OF REFERENCES 0 0 O 0 0 0 0 0 0 0 0 0 0 0 0-0 0 241 LIST OF TABLES Table Page 1, Mary Bickford8s Earnings Between 1912 and 192^ e o o o o 0 0 o o o o o o o 0 0 o o o ^*8 2„ Motion Picture Salaries; 191^”19l6 = . o , 48 3o Negative Print Cost Index, , Paramount 1 c tix re s o 0 0 o . o- o 0 0 o o © o o 0 0 0 © ■ ^50. 4„ Film Distribution in the United States, Fiscal Years 1919 and 1923 . « . » 62 5„ Affiliated Chain Theaters, 1931. 64 60 Investment in the Motion Picture Industry0 .. 69 7. Specified Personal Consumption Expenditures, 1929-1939 (in millions of dollars) . > ; ;, 73 8. Assets of Seven Leading Motion Picture Firms, 1946 . o . o . o © . o o . 80 9. Films Distributed by Defendants 1943-1944. 0 81 10. Domestic Theaters Controlled Before and After Consent Decrees „ . ... , . 85 11o Features Released by Major Companies - 1953—1968 o o 0 0 0 p . o o 00000 0 0 0 88 vl ABSTRACT At present, there is far-reaching unrest that is reshaping the commercial film industry. Six large motion picture making companies lost $100»000,000 for the fiscal year 1969 and the portion of the film industry's recrea­ tional dollar has dropped twenty-four percent since 1946. Nevertheless, certain motion pictures are making money, many of which are being created on low budgets by generally unknown individuals. Commercial films are made either by a large corporation or a few individuals. Neither system seems compatible with the other! Thus a conflict has arisen between two methods of film making. It is the purpose of this thesis to study the eco­ nomic history and financial structure of these two systems in order to discern the future trend of the motion picture industry. As well, in order to determine the economic, operational, and practical differences between these systems, two motion pictures are examined; Lilies of the Field, the prototype of the independent film, and Hawaii, a representative of the large motion picture. vii CHAPTER I ECONOMIC BACKGROUND OF THE MOTION PICTURE INDUSTRY. Motion Pictures Is a photographic technique whereby a sequence of still pictures In black and white or color is projected In rapid succession onto a screen to give the illusion of motion.^ Through this simple concept has developed a whole society?s subculture. Because of the complexity of the motion picture industry certain terms need definition. 'Nomenclature ef'the Motion Picture Industry Commercial motion pictures, movies, or film as it is commonly called in the United States, can be broken down into three major areas; production, distribution, and exhibition. Production covers all elements of the physical acts of making a movie. Included in production is the research of social feeling to determine audience desire which may be done scientifically through marketing analysis procedures or emotionally through personal intuition, whim, or feeling. Once audience desire Is determined, the writing or buying of an existing script is generally, the next step. ^Arthur Knight, Motion Pictures,11 Funk &. Wagnails Standard Reference Encyclopedia (1959)» XVII, ^3. The script may come, for example, from an idea casually mentioned to its creator, or from a best-selling novel. Whatever its source, the script, will serve as the basic unit from which the film will grow. Production then concerns itself with the acquiring and budgeting of all facilities including equipment, time, and location. While gathering facilities, production also acquires talent that will, work both in a technical capacity behind the camera and in an acting capacity in front of it. Once all these items have been gathered and contracts nego­ tiated, the screen play is recorded on film. After the film has been processed, it is edited to hopefully create a desired story flow. Finally, a negative print is developed which represents the script in its final filmed 2 form. The cost of this film is known as the negative, print cost and it represents the primary investment and total effort of production. Distribution, the second area of the film making . industry, covers all the elements from acquiring the nega­ tive print to selling the use of a positive print copy to an exhibitor for public viewing. Though ownership and physical control of this negative print are generally kept A negative print is used during filming rather than a positive print (one that will transfer a positive image on a screen when projected) because negative prints enable the making o f .many positive.copies which are shown to the public. 3 by production, it is part of the function of distribution to determine how many positive prints will be necessary to be made for release to the public. Several ways of deter­ mining the number of positive prints are in effect today: sneak previews, road shows, and first successive runs. In order to do this, distribution must decide what type of release program or run, the successive.exhibition of a feature for a given area, will have.^ Preview showing or sneak preview releases the film to the public at certain set locations. The picture is shown from one to three.weeks, and then is drawn off the market for six to eight months. The sneak preview, not advertised, but generally shown along with another movie, is used to test audience reaction to a certain idea or type, of film. It is not uncommon for the film to be re-edited after audience reaction is determined. In the road show method, a limited number of prints are made but in this case they are scheduled.into different specially selected, movie houses at premium prices, usually between $3.50 and $4.50 for a reserved seat.