The studio system in the Golden Age of Hollywood was a method of film production and distribution between the 1920’s and 60’s. Large motion picture studios wanted to maximize their profit and minimize the risks of going bankrupt. They turned to producing movies on their own film making lots and they were especially skillful in handling employees, and contracts. The use of long-term contracts was very effective in keeping costs lower than they otherwise would have been; and it helped studios control talent. They used a form of “vertical integration”; basically creating a monopoly of sorts in terms of ownership of the production and distribution of films. Early on, the studios also used “block booking” as part of their overall system, which was
