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The U.S. Film Industry: A Historical Overview. J412/J512 U.S. Film Industry October 3, 2013. Reading Quiz. What is the “new abnormal,” as discussed in Lynda Obst’s article? . Answer. Essentially: Extreme reduction of risk (or attempt thereof) - PowerPoint PPT Presentation
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The U.S. Film Industry:A Historical Overview
J412/ J512 U.S . F ILM INDUSTRYOCTOBER 3, 2013
Reading Quiz What is the “new abnormal,”
as discussed in Lynda Obst’s article?
Answer Essentially: Extreme reduction of risk (or attempt thereof)
Are films “properties that can be marketed into international franchises?” (p. 5)
“International has come to be 70% of our total revenues in the New Abnormal” (p. 7).
“They can invent stars for tentpoles, pay them less up front, and tie them in to infinite options for sequels, like with Chris Hemsworth in Thor” (p. 18).
The Early(US) Film Industry
J412/5129/27/12
Film’s Inventor? Thomas Edison or William K. L. Dickson?
Dickson performed bulk of experimentation; most scholars credit Dickson with transforming a concept into reality.
Fred Ott’s Sneeze, 1894
http://www.youtube.com/watch?v=8PaJ1r0udvQ
Film as novelty
http://www.youtube.com/watch?v=4nj0vEO4Q6s http://www.youtube.com/watch?v=agvQxm_nPIw
Film as Business
From 1908:Beginnings of anIndustrial Structure
Mass Production Growth of narrative format
“Director” system
Companies: Edison, Biograph, Vitagraph, Kalem, Essanay, Lubin, plus small producers
Struggle for Control: Patent Wars
Locations of Film Industryin Early 1900s
New York
Vitagraph Company of AmericaEdison Kinetoscope Parlor
Fort Lee, NJ
Moving Pictures Studios West
Film Clip: “Hollywood East”
Motion Picture Set, 1912
Hollywood
Golden Era of Hollywood(APPROX. 1920S-1950S/1960S)
Golden Era: Film Studios Operating in Hollywood
Big Five:◦ Paramount◦ Fox◦ Loews (MGM)◦ RKO◦ Warner Brothers
Little Three:◦ United Artists◦ Columbia◦ Universal
Poverty Row◦ Republic◦ Monogram◦ Grand National◦ Others
The Big Five studios were:“a large inverted pyramid, top-heavy with real estate and theaters, resting
on a narrow base of intangibles which constitute films”(Huettig).
Business Strategies Block booking Run, clearance and zoning
Admission price discrimination
Watch at Home: “A Trip Through a Hollywood Studio”
HT TP://WWW.YOUTU BE.COM/WATCH? V=WFUA MJ ITY-0
Anti-Trust andthe Paramount Decrees
Anti-Trust Lawsuits First antitrust lawsuit (1938):
◦ Principal objective: Divest theaters◦ Secondary objective: End monopolistic practices in
film industry
Settled out of court: theater control remained with studios
Paramount Decrees Final decision in 1946
◦ Unfair practices favoring theater circuits were declared illegal restraints of trade and prohibited
Paramount & RKO filed consent decrees to divest theater holdings
Loew’s, Twentieth Century-Fox and Warners refused to comply ◦ Launched another appeal◦ Ultimately divested in 1953
Impact on HollywoodStudio System
Production: ◦ Little Three had more share of market◦ Boom in independent production◦ Production Code harder to enforce
Distribution:◦ Big Five could no longer give special
treatment to each other
Exhibition:◦ Independent theaters had more control
over their businesses
From Film Industry to Entertainment Industry
Key = TV provided “studios with blueprint for creating a new market by means of exploiting their library of titles through a new technology” (Tzioumakis, 14).
Conglomeration & Deconglomeration Conglomeration: Studios acquired by major corporations◦ e.g., Paramount = Gulf + Western
Deconglomeration: Major corporations focused operations◦ Studios able to focus on media, utilize synergy and cross-
promotion to full advantage
Strategies: ◦ Synergy, cross-promotion, horizontal & vertical
integration, global expansion
By 1966: ◦ Aging leadership◦ Production losses, lack of aggressiveness◦ Eroding assets
1966: Gulf + Western acquired for $125m◦ Overhauled mgmt, restructured company◦ Independent production◦ Television acquisitions◦ Reduced foreign distribution overhead
Paramount:
1965: The Sound of MusicFlops: Dr. Doolittle (1967), Hello Dolly! (1968),
Star! (1968)1971: New leadership
Cut back on film productionCreated music-recording companiesAcquired TV stations, Coca-Cola Bottling Midwest,
Aspen Skiing Corporation, Magnetic Video, Pebble Beach Corporation
1977: Star Wars
Twentieth Century-Fox:
Where does digital technology fit in?
“Digital media provide lucrative platforms for new but also old media content, adding to the value of the music, film or television libraries kept by rights holders.”
-- Paul McDonald (quoted in Tzioumakis, p. 25)
Location of Film Industry / Alternatives to Hollywood
Outside the Hollywood System
Artistic cinema Minority films Exploitation films Documentary films Industrial films
Pacific NW & Hollywood
Questions?