Reading guide-week 12

Question 1

phi phenomenon

Answer 1

refers to what happens when we see one light source go out while another one close to the original is illuminated. To our eyes it looks like the light moves from one place to another

Question 2

persistence of vision

Answer 2

our eyes continue to see an image for a split second after the image disappeared from view.

Question 3

Why are persistence of vision and the phi phenomena important to movies?

Answer 3

Motion pictures are possible because of these two quirks of the human perceptual system.

Question 4

What are nickelodeons?

Answer 4

• Occurred when early filmmakers discovered that movies could be used to tell a story. Examples of the Cabbage Fairy and A Trip to the Moon
• Nickelodeons, also called nickelettes, due to the 5-cent admission price, are 50 to 90 seat theatres that sprang up in converted stores throughout the nation

Question 5

What is the MPPC

Answer 5

• Motion Picture Patents Company
• formed to restrict moviemaking to the nine companies that made up the MPPC
• Film exhibitors were brought into line by a $2-per-week tax, which entitled theatres to use projection equipment patented by the MPPC. Failure to pay this tax meant that the theatre owners would no longer be supplied with MPPC-approved films

Question 6

What effect did the MPPC have on the movie industry (i.e in terms of competition and location)?

Answer 6

• MPPC fueled competition (annoyed by regulations, independent producers began offering films to exhibitors at cheaper rates than the MPPC members)
• Independent producers fled New York and New Jersey. Wanted a good location with good weather, interesting geography, low business costs, and proximity to a national border so that the independents could avoid the MPCC’s subpoenas. Finally found the perfect environment: Hollywood.

Question 7

What is block booking?

Answer 7

• Studio owners could exert control over independent exhibitors by block booking
• To receive two or three topflight films from a studio, the theatre owner had to agree to show five or six other films of low quality
• This policy assured the production companies of steady revenue for their films

Question 8

What four ways can films be financed?

Answer 8

1. ) If a producer has a good track record and a film looks promising, the distributor might lend the producer the entire amount needed to make the film. In return, the distributor gains distribution rights to the film.
2. ) Arranging a PICKUP. Under this arrangement a distributor agrees to “pick up” the cost of a finished picture at a later date for a set price. This agreement does the producer little good, but the producer can take the pickup to a bank to help secure a loan for the cost of the film.
3. ) A LIMITED PARTNERSHIP: an arrangement whereby the film is financed by outside investors. Each limited partners puts up a set amount, and his or her personal liability is limited to the amount invested.
4. ) A JOINT VENTURE: several companies involved in the film production and distribution pool their resources and agree to finance and distribute one or more films. This arrangement is becoming more common as several companies share the risk and potential rewards of a movie.

Question 9

What are the three typical arrangements developed by move companies and exhibitors relative to the financial terms tied to showing a film?

Answer 9

1. ) The exhibitor agrees to split the money with the distributor according to an agreed-upon formula-perhaps 50/50 the first week, 60/40 the second, 70/30 the third, and so on- with the exhibitor keeping more money the longer the run of the film
2. ) The sliding scale- as the box office revenue increases, so does the amount the exhibitor must pay the distributor. For example, if a week’s revenue is more than $30,000, the exhibitor would pay the distributor 60%, if the revenue was between 25,000 and 29,999, the distributor would receive 50%, and so on…
3. ) 90/10 deal. The movie theatre owner first deducts the house allowance (the nut) from the box office take. The house allowance includes all the operating expenses of the theatre (heating, cooling, water, lighting, etc.), plus a sum that is pure profit for the theatre (this is called air). From the revenues (if any) that remain, the distributor gets 90% and the house 10%