1. THE STUDIO SYSTEM

2. Why Early Hollywood?
Quite simply, the land and labour were cheap in LA at the time and the weather was always good (ideal conditions for filming).
It is within close proximity to the sea, mountains and woodland (ideal locations).

3. When and Why?
After the disaster of the Wall Street Crash in 1929, cinemas began to lose money and audiences dropped by 50%.
So much cash had been invested in sound (the talkies) that this had to be paid back.
Hollywood did not want films to reflect the rising poverty and, ultimately, the Depression. Films were to be seen as escapism.

4. When and Why?
In the early 30s a strict censorship and production code were put into place. The code provided a framework of limitations that ensured studios only worked in particular genres.
Most films had a classical Hollywood narrative.
The three key genres were gangster, musical and horror as these were seen as escapist and engaging.

5. The System By 1930, 5 companies dominated the film industry:
Paramount, MGM, Warner Brothers, Fox and RKO.
These were known as the Big Five.
The Little Three were also part of this oligopoly:
Universal, Columbia and United Artists.
There was also a group of minor studios called Poverty Row that specialised in B movies.
To be a major the production company had to be vertically integrated owning both a theatre chain and a distribution operation.

6. The System
Despite the Depression some studios had support from East Coast finance houses and were able to build their dream factories in Hollywood.
The studio system was not only an attempt to control the film industry through vertical integration, it was also an attempt to make filmmaking as efficient and orderly as possible.

7. The System
Film studios were organised like assembly line plants with strict divisions of labour and hierarchies of power.
Each film would be under the control of a producer during its progress down the production line. This is called the ‘producer-unit’ system.

8. The System
Directors, actors, supporting players, writers, cameramen, special effects men, editors and composers were all contracted to particular studios for 7 years. This meant that they could be ordered about as it suited the studio and were not allowed to work for anyone else.
Actors, however, could be ‘loaned out’ to other studios if they were available.
Stars were pivotal to the financial success of the studios. (See Olivia de Havilland case)
They reinforced consumer brand loyalty to the studios.
‘Star System’.

9. The System
The numbers of each type of film made were under studio control.
Only some room was made in cinemas for B-movie filmmakers who were charged a fee.
Each of the majors made 52 films per year.
Each person working on the film had a clearly defined role and this eventually led to areas of technical excellence.

10. Exhibition during the System
Majors owned only 15% of theatres but collected 75% of all revenues.
They owned 70% of the first-run movie houses.
Cinemas were improved during this time. The old style vaudeville grand theatres were replaced by new, cheaper per unit buildings. Air conditioning, concessions stands and provision for talkies were made.
In terms of revenue, the war years were the Golden Age.

11. The End?
Development of European cinema at this time was hampered by WWII.
Hitler had banned all imports and exports of films in Germany. Most filmmakers were used to make propaganda films.
Hollywood continued to make huge profits during the war due to the public’s need for escapism.
After the war, European countries watched a backlog of Hollywood films earning the studios 121 million dollars in profit. This was the final year of the Golden Age.

12. Decline of the System
1946- In the USA 90 million people went to the movies every week and the industry made $121 million profit. By 1948 this had fallen to $48 million.
There are four possible reasons for this decline:

13. Decline of the System Post-war baby boom
At the end of WWII, the birth rate rose dramatically. Families with small children were more likely to make their entertainment at home.

14. Decline of the System TV gained popularity from 1948
In 1947 in USA 14,000 sets were in use. By 1950, this had rose to 4 million.
The studios foolishly ignored this new media until it became obvious that they could no longer afford to do this.
The cinema audience began to be more choosy.

15. Decline of the System
The Paramount Decrees forced the studios to sell off their cinemas.
From 1938 the U.S. government were involved in a court case to break the monopolies of the vertically integrated majors (The Anti-Trust Laws). They won in which forced studios to sell off their cinema chains, thus giving independents an arena to show their films.

16. What Happened Next? Independent film companies began to be successful.
Liberty Films (Frank Capra, William Wyler and George Steven) proved there was a future for independent films.
Stars refused to be tied to studios.
Charlton Heston and Marlon Brando signed non- exclusive contracts. James Stewart took 50% of the profits for Winchester 73.

17. What Happened Next?
The industry attempted to counter the rise of TV but this only worked temporarily and included:
Huge commercial MGM musicals such as Seven Brides for Seven Brothers (1954) and Singin’ in the Rain (1952).
Biblical epics such as Ben Hur (1959) and The Robe (1953).
Technical innovations such as 3D, Cinerama, Technicolor and the increase of location shooting.
The rise of ‘youth’ films.