Page 95 - Inside the Film Factory New Approaches to Russian and Soviet Cinema

76 THE ORIGINS OF SOVIET CINEMA: A STUDY IN INDUSTRY DEVELOPMENT
distribution to local theatres without having to compete directly with the larger,
more powerful Sovkino, and Sovkino was spared the necessity of extending its
distribution network beyond Soviet Russia. 41
The 1924 industry reorganisation benefited development in several ways. It
consolidated resources and ended the manipulations of middleman traders. This
reduced inflationary pressures and provided incentives for theatres to reopen. The
reorganisation also gave Sovkino a strong, vertical structure and status as the true
industry leader. And finally, it opened the way for the implementation of
Lunacharsky’s long-range developmental strategy which was posited on the
aggressive commercial exploitation of foreign films.
Major commercial theatres in large urban markets got first rights to imported
films and to the industry’s exhibition technology, mostly old Pathé and Ernemann
projectors. Sovkino charged these favoured theatres high rental fees–usually 50
per cent of gross receipts–and reinvested its margin in increased production. The
typical programme at major commercial theatres included a Russian-made
documentary short or political speaker, a comedy short, and a feature production
(the last two of which were usually imports). Ticket prices at these commercial
theatres varied considerably, ranging anywhere from 25 kopeks to 1.50 roubles.
These commercial theatres competed with cinema installations in urban workers’
clubs which ran their theatres at cost and charged spectators only 12 to 15 kopeks.
But union membership was often a requirement for patrons of workers’ clubs, a
condition which excluded wealthier classes and assured that they would attend
commercial theatres. In addition the workers’ clubs remained notorious for their
poor facilities: patrons complained about the absence of heat, the poor musical
accompaniment, and the uncomfortable seats. Hence the commercial theatres,
with their comparatively attractive accommodation and constant supply of popular
imports, attracted both bourgeois patrons who could afford higher ticket prices and
workers who valued ‘bourgeois’ diversions. This made the commercial theatres the
key revenue sources for the entire industry: although they constituted only 17 per
cent of the total number of permanent exhibition outlets in the Russian market,
they brought in 80 per cent of the industry’s revenues. 42
The following figures reporting total box-office grosses from the middle 1920s
indicate how important foreign films were in initially attracting revenue and how
quickly the Soviets converted their gains into domestic production. 43
Both the total proceeds and the proportions derived from domestic versus foreign
films deserve attention. As can be seen, total proceeds increased significantly each
season during the mid-1920s. A huge increment (roughly 270 per cent) followed the
1924—5 season, testifying to the beneficial effects of the 1924 industry
reorganisation. The figures also reveal that Soviet producers consistently
narrowed the gap between revenues generated by their films and those deriving
from imports. Since the annual number of imported films remained high during the
mid-1920s, the sharply reduced gap is attributable not to a decrease in importation
but to an increase in domestic production activity and to the greater prominence of