ABSTRACT
This chapter deals with the troubles faced by the British film industry during the 1930s. The acoustic requirements of the talkies were not met by many of the early auditoriums and the cost of adaptation and equipment hit many small exhibitors very hard. The Chancellor of the Exchequer, Philip Snowdon, increased the rate of entertainment duty, and at the same time increased the rate and the spread of income tax. To worsen matters, the big renters handling the desirable new sound films were able to insist on sharing terms, or percentage rentals, often at very high levels and often with guaranteed minimum payments. If the film did not come up to expectations at the box office the exhibitor lost. The big circuits did not need the protection of the CEA, but the small men had to pay up to 40 or 50 per cent for their super films, or 33 per cent for an ordinary feature without any supporting programme.
