SW never operated more than 22 Cinerama theaters at one time, and they never produced enough pictures to keep even those busy (and nowhere near the court-imposed limit of 15 pictures). When they did produce a new Cinerama picture, all they could think to do was produce yet another travelogue, the only real change being where the picture traveled to. Even then, as we have seen, SW would delay release until they had wrung the current release dry; they insisted every picture had to premiere in New York, yet they wouldn’t open a second New York theater. Nor would they even consider beginning a new picture while they had one waiting in the wings; the idea of creating a backlog of pictures ready to go appears never to have been considered.
In 1957, when the foreign-rights agreement with Robin International expired, Stanley Warner ventured into that area themselves. They learned a lesson, though, from Nicolas Reisini’s practice of sub-licensing Cinerama to local exhibitors, who would pay to convert a theater, then lease rather than purchase the equipment from Cinerama Inc. Essentially, what Reisini had done, and what SW did now, was to sell Cinerama “franchises”. It was a policy that might have served Cinerama well from the outset — and indeed Reisini would employ it with some success after he took the driver’s seat — but it seems not to have occurred to anyone before Reisini came along.
Part of the problem all along was Cinerama’s Byzantine corporate structure, which hampered any attempt to strategize Cinerama for the long run. Instead of one central corporation, Cinerama was first three, then four, all severely under-capitalized and with complicated financial relations. A serious simplification of the arrangement was called for, but Stanley Warner never made any effort in that direction.
Nicolas Reisini was, if nothing else, an energetic and ambitious entrepreneur and wheeler-dealer, and he hit the ground running. Even before assuming the presidency of Cinerama in May 1960, he accomplished something nobody before him had been able to do: He established a co-production agreement with a major studio. The studio was MGM (then flush with the critical and box-office success of Ben-Hur), and the agreement was announced on December 11, 1959: They would produce at least two and as many as six features; MGM production chief Sol C. Siegel would supervise them, with Cinerama having script, director and cast approval; Cinerama would distribute and exhibit the pictures in their theaters, and MGM would handle distribution of 35mm general release versions after the Cinerama roadshow engagements.
It wasn’t enough to save his job. Enter William Forman of Pacific Theatres. Several of his theaters had installed Cinerama equipment, and Forman jumped in with both feet in February ’63: for $15 million he bought up the note Prudential Insurance Co. held from their 1959 loan of $12 million, and with it he acquired a series of stock options, all of which he excercised, to the point where he replaced Nicolas Reisini as president and CEO in December ’63. Reisini remained as chairman of the board for the time being, but in September ’64, with Cinerama Inc. teetering on the edge of bankruptcy, he resigned even from that, effective immediately.