b'Studio exchanges, whose major business was releasing NEW films, struggled to maintain older films and films out in current circulation. They would continually re-release or re-name and re-release films in order to bring in additional revenue to help cover the additional overhead. With films staying that long on the market, there were continual problems with theater managers forgetting to include posters, writing on them, damage and wear.The warehousing and distribution of the accessories became an overwhelming additional burden that the studios couldnt handle.Independent poster exchanges were buying posters and accessories from the studios and began supplying theaters directly.Soon independent companies such as Leader Press began creating and supplying alternative versions for the theaters with completely different artwork. They even boasted of providing posters for 25-50% below studio prices. The independent poster exchanges became so strong that they formed associations and took control of movie paper. The major studios, while frustrated, had very little alternatives. In 1937, NSS was approached by Loews to print and distribute their specialty items, which consisted of larger sizes such as three sheets, 40x60s and banners. The test worked fairly well, and NSS created Advertising Accessories, Inc., and began supplying theaters with these specialty accessories for films by United Artists, Loews and Columbia. NSS quickly faced major problems to create, print, distribute and warehouse accessories since they only had six regional outlets and a very small art department.By 1939, distribution problems for the studios had multiplied. Warehousing overhead for national distribution, rising labor costs, rising legal battles PLUS the realization that the U.S. was headed for war, became more than studios could bear. Studios were losing massive amounts of money on the accessories.Paramount approached NSS with a proposal to take over their entire accessories distribution but ONLY under the condition that NSS would open branches in all major markets where Paramount had an exchange. As part of the agreement, Paramount would provide all of the artwork to NSS.'