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Hollywood Means Business: To 1948. Production Distribution Exhibition. Who makes the image move?. The Major Hollywood Studios (1910-1960) Conglomerates (1970s-present), controlling: Movie studios Record companies Theater chains Amusement parks Video rental outlets And. - PowerPoint PPT Presentation
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Hollywood Means Business: To 1948
Production Distribution
Exhibition
Who makes the image move?
The Major Hollywood Studios (1910-1960) Conglomerates (1970s-present),
controlling: Movie studios Record companies Theater chains Amusement parks Video rental outlets And . . .
EARLY HISTORY OF THE
MOTION PICTURE INDUSTRY
Highly competitive with easy access for new business
interchangeable products smallness of buyers & sellers in relation to market absence of artificial restraints accessibility of resources
THE MOTION PICTURE PATENTS COMPANY (MPPC)
Thomas Edison formed MPPC (“the “Trust”) in 1908 as a PATENTS POOL cooperative of leading U.S. and French film
companies dominated the film industry from 1908-1915 Successfully excluded small companies
from the market
WHY did the MPPC fail? Could not meet product demand Some independent producers bought film stock
from overseas Some independent producers moved operations
out of the NY and NJ area, eventually to California
Independent distributors set up a non-MPPC distribution network
Declared a monopoly in 1915 as the result of a 1912 anti-trust case brought by Fox
THE RISE OF THE HOLLYWOOD STUDIO SYSTEM
(1925-1948)
From Monopoly (the MPPC) to
Oligopoly (the Studio System)
The “Big Five” and the “Little Three”
The “Big Five” or the Majors: Warner Brothers Paramount 20th Century Fox Loew's (MGM) RKO (owned by RCA)
The “Little Three” or the Minors: United
Artists Columbia Universal
How did the Big Five control all three levels of the industry?
VERTICAL INTEGRATION of production distribution exhibition
How did the studios control exhibition?
Run First, second, third
Zone Geographic coverage without overlaps
Clearance Elapsed time between runs
Block Booking Rental in packages of assorted films
High Sierra: A Case Study
An A feature, starring Bogart and Lupino Starts first run on January 25, 1941
Studio-run theaters in 100 large cities Ticket price=$1.00 to $1.25
Second run in May, 1941 Second run theaters (smaller cities) Ticket price=$.40 to $.75
Third run in Fall, 1941 Neighborhood and rural theaters Ticket price=$.25
Genres: How Films Are Sold
GENRE: category in which conventions regarding similar characters, scenes, structures and themes reoccur
REGULATED DIFFERENCE: genres benefit the industry by allowing both product standardization and product differentiation
What are some Hollywood genres?
What Undermined the Studio System?
Four major shifts occurred in the late 1940s: Postwar Changes in Society
Families Baby boom Move to suburbs
The Rise of Television The House Committee on Un-American Activities The Paramount Decision of 1948
The Paramount Decision In 1948, Supreme Court ruled the studios were
in violation of the Sherman Anti-Trust Act, that they were restricting fair trade
Court ordered the Big Five studios to divest their theatre chains (“divorcement”)
Effect: Studios cut their film production by half This opened the way for independent producers,
though that opening was short-lived
Entertainment Industry Consolidation 1980s—Reagan deregulated the industry Link between production and distribution re-
established as media conglomerates formed Saturation booking replaced clearance Subsidiary markets increased in importance
Willow, for example International grosses also grew as Hollywood
films dominated the world market
Thought for Today
“The film is to America what the flag once was to Britain. By its means Uncle Sam may hope some day, if he is not checked in time, to Americanize the world.”--Unsigned Article, New York Morning Post, 1923