1. Producers and Audiences
Warner Brothers
Studio System Case Study
A mini-history of Hollywood

2. Things to think about… How do studios make money?
Which are the most lucrative aspects of movie-making?
How important is technology?

3. Vertical Integration MOST IMPORTANT TERM EVER!
PRODUCTION
(Films get made)
DISTRIBUTION
(Films are sold)
EXHIBITION
(Film are shown to an audience)

4. The best way to make money is to have a monopoly over ALL THREE - Why?
PRODUCTION
(Films get made)
DISTRIBUTION
(Films are sold)
EXHIBITION
(Film are shown to an audience)

5. Case Study – Warner Brothers
1918 studio founded by 8 brothers who were Polish Jews and emigrated to Ontario, Canada.
The 3 eldest brothers bought cinemas –
EXHIBITION

6. The brothers then sold films to other companies – DISTRIBUTION.
And in 1918 opened a film studio – PRODUCTION.
They invested their profits into newspaper advertising, a distribution system and a radio station.

7. Some of the brothers were interested in adding sound their films, but Harry Warner opposed it –
“Who the hell wants to hear actors talk?!”
The company lost money and so he changed his mind.

8. The ‘Talkie’ era was good for Warner Brothers – to placate Harry they used background sound only at first.
They then bought a new theatre with the money they made.
AND they moved to Hollywood!
And bought lots of cinema chains

9. 1930s – The Depression hit.
Warner lost $8m, then $14m the year afterwards (1931 and 32)
The started producing musicals to cheer up cinema-goers.

10. Then audiences got bored of musicals, so they produced swashbucklers instead!
Escapist, exotic fantasy – kept their minds off The Depression.

11. Then a taste of reality
Warner Bros made gritty, dark gangster films next – to link to the audience’s experience.
Humphrey Bogart and James Cagney became big stars
The studio made profits again

12. BUT…
The gangster films got Warner Bros came into trouble with The Hays Code in the 1930s – the Motion Picture Production Code (written by Will Hays) – they were accused of indecency…

13. So they made historical dramas…
Which were less likely to offend!

14. The Hays Code said…
Audiences can’t be prompted to sympathise with bad people
People should behave correctly at all times
The law is to be respected and breakers of it to be punished

15. Also…
No evil priests
No nakedness, no alcohol, no sex
Couples in separate beds – if one character approaches another character’s bed, one foot should be kept on the floor.
No childbirth, no revenge, no explicit shots of murder
Adultery is not to be presented ‘in an attractive light”
Scenes of passion banned, ‘excessive and lustful kissing to be avoided’
By the 1950s, most film-makers ignored the Code and the Golden Age of Hollywood was over
NERDY FILM FACT: This is why they don’t get together in Casablanca – she’s married! Also, Betty Boop got a full length skirt.

16. During the 1940s…
What kind of films would have been popular?

17. Contracts…
In the 1940s Warner Brothers had some trouble with stars’ contracts.
Olivia de Havilland refused a role Warner had given her so Jack Warner sent 150 telegrams to other studios telling them not to hire her.
De Havilland sued Warner for contract issues – contracts could legally only last 7 years – they’d had her for much longer.

18. 1948 Newsreels created for cinema audiences
1940s films – glamorous and slick – Lauren Bacall, Doris Day
Warner still doing very well

19. BUT…
The Federal Trade Commission ended the domination of the big studios in the late 1940s.
The studios were forced to sell their theatres to allow for a more competitive industry.
Warner lost lots of money.

20. 1949 – TV was taking off.
Jack Warner wanted to produce things for TV – Federal Communications Commission said no.
They experimented with 3D – (1953 House of Wax) film did well, 3D not v.popular though

21. Warner Bros were eventually allowed to produce for TV – they made lots of Westerns.
T.V. still dominated the entertainment industry though…
Warner got into more arguments with T.V. star contracts and lost money.
In 1956 they offered the company for sale.

22. So so so so scandalous… 1956 Warner Bros for sale…
Jack Warner secretly arranged for a syndicate of businessmen to buy 90% of the company…
All three brothers sold
And then Jack joined the syndicate and bought back the company with a loan!

23. 1950s Warner Bros did v. well
1958 launched Warner Brothers records
1960s film production in decline – more joint ventures. Warner bought independent films and provided money and distribution.
Warner Brothers made lots of money from selling film soundtracks.
In 1966 Jack sold control of company to Seven Arts Productions for $32m but stayed as V. President.
They were soon sick of Jack and sold to Kinney National Co. for $64m. Jack retired in rage.

24. Investments… Bought rights to DC Comics, Batman.
Signed Robert Redford, Paul Newman in 70s and 80s = lots of money!
Warner Communications bought computer games companies and theme parks.
produced films with Disney ‘til (They then joined Buena Vista)
1989 merged with TIME magazines – bought Warner for $14.9 billion
Bought by AOL.

25. TV company…
1995 W.B. T.V. Network – produced Buffy, Smallville and Dawson’s Creek
Then merged with Paramount

26. And in late 1990s they robbed J. K. Rowing blind…
Films released 2001, 2002, 2004, 2005, 2007 – most recent was ‘supposedly’ delayed due to Writer’s Strike – held back to Summer 09 for PURELY FINANCIAL reasons.

27. 2008 Warner announced they were dropping HD DVD – only releasing DVD and Blu-Ray
2008 broke the all-time studio record $ billion in one year.

28. Other things Warner own:
Ellen DeGeneres
Madonna ( )
Thundercats
Watchmen
D.C. comics.
Matrix series
Vue cinemas
Warner theme parks

29. Important things we’ve learned:
VERTICAL INTEGREGRATION – define
To make money in Hollywood you need to control V.Int.
Owning franchises = money
Riding out difficult times needs money, but things generally get better in time
Media mergers etc = increase influence on consumers

30. Handling the Harry Potter franchise:
Teaser poster:
HP6
Tagline
No date of release?

31. From November 2008
When the film WASN’T released!

32. Trailer poster
Full title
“Coming Soon”

33. Full title
Date of release

37. Finally, the OFFICIAL poster!