In the early to mid-20th century, the studio system of the movie industry was a powerful and very profitable business; the vertical integrated structure had proved to be successful. The nine or ten major studios made big profits from both the production of movies and the distribution and screening of their own movies. This was possible because most of these studios owned a chain of theaters in the major cities. With the independent theater owners, they made money by a system called “block booking”, meaning the theaters had to show a certain block/number of movies produced by that studio. They became monopolies in the movie industry and financially hurt the independent and small movie businessman.
In 1921, the FTC found this method of distribution …show more content…
After the depression, the major studios emerged stronger. However, the studios were able to get around this due to the fact the government gave them some leeway as it was the time of financial trouble during the Great Depression. These studios were generating profits and were at least providing employment to many people in different capacities; the entire film industry employed hundreds of people in different categories and capabilities. There were two major strikes in the 30’s; the war and stiff economic times led to strong unionism. The studios were able to hold their sway, largely due to a controversial deal with the Roosevelt administration. The big 8 studios became more powerful than before. The top management of the …show more content…
But ultimately, Paramount studios did not want to fight the justice department after its two cases and agreed to sell its chain of theaters. On the other hand, the other studios did not agree to sell their theaters. Their argument was that the Supreme Court really did not declare that owning a chain of theaters was illegal. But in 1949, the Federal Statutory court declared owning a chain of theaters by the studios illegal.
During World War II, both the Soviet Union and USA were on the same side with the purpose of defeating Germany. However, their basic domestic philosophy was different. Soviet Union was communist and USA a capitalistic country. This led to both a military and political rivalry. This became so severe that there was a cold war between the two countries for many years. During this time there was great fear in the USA that there will be a spread of Communism within the country which had to be stopped at all costs leading to the “The
In 1921, the FTC found this method of distribution …show more content…
After the depression, the major studios emerged stronger. However, the studios were able to get around this due to the fact the government gave them some leeway as it was the time of financial trouble during the Great Depression. These studios were generating profits and were at least providing employment to many people in different capacities; the entire film industry employed hundreds of people in different categories and capabilities. There were two major strikes in the 30’s; the war and stiff economic times led to strong unionism. The studios were able to hold their sway, largely due to a controversial deal with the Roosevelt administration. The big 8 studios became more powerful than before. The top management of the …show more content…
But ultimately, Paramount studios did not want to fight the justice department after its two cases and agreed to sell its chain of theaters. On the other hand, the other studios did not agree to sell their theaters. Their argument was that the Supreme Court really did not declare that owning a chain of theaters was illegal. But in 1949, the Federal Statutory court declared owning a chain of theaters by the studios illegal.
During World War II, both the Soviet Union and USA were on the same side with the purpose of defeating Germany. However, their basic domestic philosophy was different. Soviet Union was communist and USA a capitalistic country. This led to both a military and political rivalry. This became so severe that there was a cold war between the two countries for many years. During this time there was great fear in the USA that there will be a spread of Communism within the country which had to be stopped at all costs leading to the “The