2.2 Rise and fall of the Hollywood studio system

Hollywood's studio system revolutionized filmmaking in the early 20th century. Major studios like Paramount and MGM dominated, controlling production, distribution, and exhibition. This vertical integration maximized profits and shaped the industry's creative landscape.

The system's decline began in the late 1940s due to antitrust legislation and changing audience tastes. Television's rise, increasing production costs, and societal shifts contributed to its downfall, paving the way for the "New Hollywood" era of auteur filmmakers.

Establishment and Structure of the Hollywood Studio System

Key players in Hollywood studio system

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• Major studios dominated film industry (Paramount Pictures, Metro-Goldwyn-Mayer, Warner Bros., 20th Century Fox, RKO Pictures)
• Studio founders and executives shaped industry landscape (Adolph Zukor, Louis B. Mayer, Jack Warner, Darryl F. Zanuck)
• Executives consolidated production resources, developed studio lots, created long-term talent contracts
• Wall Street and financial institutions provided crucial financial backing
• Immigrant entrepreneurs significantly influenced industry development bringing diverse perspectives

Vertical integration in film industry

• Production control: Studios owned lots, facilities, held long-term talent contracts, developed scripts in-house
• Distribution dominance: Nationwide networks established, block booking and blind bidding practices implemented
• Exhibition ownership: Studios controlled theater chains, first-run theaters, dictated film showings and durations
• Vertical integration benefits: Guaranteed distribution, maximized profits across filmmaking stages, reduced competition

Impact and Decline of the Studio System

Studio system's creative impact

• Creative control: Studio-driven storytelling, assembly-line filmmaking approach limited artistic freedom
• Star power: "Star system" created, studios managed actors' public images, typecasting prevalent
• Genre conventions: Distinct film genres established (Westerns, Film Noir), formulaic storytelling approaches developed
• Film style: "Classical Hollywood style" emerged, technical aspects standardized (cinematography, editing techniques)

Decline of studio system

• Antitrust legislation: United States v. Paramount Pictures, Inc. (1948) forced theater chain divestiture, ended anticompetitive practices
• Television rise: Increasing TV ownership competed for audience attention, studios initially resisted then adapted
• Audience tastes evolved: Demand for diverse, realistic content grew, independent productions gained popularity
• Industry factors: Production costs increased, contract player system declined, talent agencies and package deals emerged
• Societal changes: Post-WWII cultural shifts, suburbanization altered leisure habits
• "New Hollywood" era: Auteur filmmakers rose to prominence, European cinema influenced American filmmaking