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II. Summary
The power of the studio system The movie industry's three basic divisions ‒ production, distribution, and exhibition ‒ were firmly established by the late 1910s. Production refers to the actual making of movies, from writing the script to filming and editing. Distribution refers to individuals or companies who deliver films to various theaters. Exhibition refers to the actual theaters and theater owners themselves. Thomas Edison started the first attempt at dominating the movie industry. He formed the Motion Picture Patents Company, a cartel of major U.S. and French film producers, also known as the Trust. This group pooled patents to control film's technology and, by default, production. The Trust also acquired most film distribution and signed an exclusive deal with George Eastman, who agreed to supply movie film only to Trust-approved companies. Independent filmmakers sought ways around the Trust, however, which became easier as the filmmaking center shifted to Hollywood. In addition to being geographically far from the Trust, southern California offered cheap labor, diverse outdoor scenery, and a climate mild enough for year-round production. Independent companies in Hollywood could also easily slip over to Mexico to avoid prosecution for patent violation. Adolph Zukor, future head of Paramount Studios, and Willie Fox, founder of the Fox Film Corporation, were instrumental in breaking up the Trust's monopoly. Zukor found ways to work around the Trust, and Fox filed a suit that dissolved their monopoly in 1917. But the new companies that would form would also seek out control over all three facets of the film industry, in a vertical integration of power. This turned the film industry into an oligopoly, where a few studios controlled much of the business. Controlling production The first movies were sold by the foot, but when producers and directors recognized that fans sought particular kinds of stories (drama, westerns, and romances) as well as particular actors and actresses, the nature of the industry changed. Recognizing that actors were becoming important, Adolph Zukor hired several popular performers to work exclusively for him, forming the Famous Players Company in 1912. One of Zukor's early finds, Mary Pickford, became one of the first movie stars. Known as "America's Sweetheart" for her portrayals of spunky and innocent heroines, Pickford was able to demand an increasingly high salary and eventually broke from Zukor to form her own company, United Artists. By the beginning of the 1920s, the studio system was firmly in place. This system essentially reduced moviemaking to a set process, having certain directors, writers, and stars all under exclusive contract to a certain studio. This method of business gave studios control over their creative talent's careers, and often over their private lives. Controlling distribution Film exchange was one of the early forms of movie distribution. This was the practice of producers loaning out movies for a share in the ticket sales. However, as the number of production companies grew, the demand for a national and international system of distribution grew as well. Also, early films were easy to steal or copy, so the Trust tried to control distribution by withholding the use of equipment from those who did not pay patent-use fees. Independents like Zukor developed other distribution techniques, such as block booking, which required theaters to carry a group of films from one company in order to acquire a popular release. For example, Zukor would pressure theater operators into taking a hundred movies at a time to get the one Pickford film they wanted. Another distribution strategy for American filmmakers involved marketing films in Europe. When World War I brought European filmmaking to a halt, Hollywood leapt ahead and Europe never regained its edge. Today, American films still bring in large revenues overseas. In 2003, The Matrix Reloaded was the top box-office draw in Germany, Spain, Australia, France, and England. Controlling exhibition When theater owners began forming cooperatives to compete with block booking tactics, Zukor and producers like him moved into exhibition. By 1921, Zukor owned three hundred theaters. In 1925, his company, Paramount, merged with Publix, the largest theater chain in the U.S. at the time, giving Zukor enormous control over the movie industry. Over time, the five major (or Big Five) studios ‒ MGM, RKO, Warner Brothers, Twentieth Century Fox, and Paramount ‒ needed to control only around 15 percent of theaters to ensure dominance. They controlled the first-run theaters that premiered new films in major downtown areas and generated 85 to 95 percent of all film revenue. Theater owners sought ways to draw in and keep a higher class of audience. Movie palaces such as the Strand, which opened in New York in 1914, began to appear. They offered lush surroundings, many seats and services, and the first public source of air conditioning. Another significant development in exhibition was the mid-city theater. As city populations migrated to the suburbs, theater complexes popped up at popular crossroads, serving as centers for entertainment for several neighborhoods. When movie attendance faltered during the Depression, theaters sought to win back audiences by holding contests and prize giveaways, as well as by offering two-for-one movie showings and starting to sell concessions like popcorn and candy. Movie attendance surged during the 1940s, when jobs were restored during World War II. In 1946, the industry's peak attendance year, 90 million people out of a U.S. population of 141 million went to the movies each week. By the late 1920s, the Big Five had achieved vertical integration and, along with the three smaller studios known as the Little Three (United Artists, Columbia, and Universal), had effectively created a powerful oligopoly. 1. The three basic divisions within the film industry do NOT include ____. a. distribution b. exhibition c. promotion d. production 2. Which of the following was Mary Pickford known for? a. founding the Famous Players Company b. marrying Adolph Zukor c. starring in the first "talkie" film d. being one of the first recognizable movie stars 3. All of the following are among the Big Five studios except ____. a. United Artists b. Warner Brothers c. MGM d. Paramount 4. Adolph Zukor was the head of which studio? a. Twentieth Century Fox b. MGM c. Paramount d. none of the above 5. The Hollywood studio system ____. a. was in place by the early 1920s b. reduced moviemaking to a set process c. gave studios control over their creative talent d. all of the above Summary 3 Read the summary of the section of Chapter 7 titled "The Triumph of Hollywood storytelling" and answer the multiple choice questions that follow.' The triumph of Hollywood storytelling Now that motion pictures were soundly in place as a part of American culture, the next step was to bring sound to them. During the 1910s, developments in speaker systems at AT&T's Bell Labs made this technically possible. However, the cost of outfitting theaters with the necessary equipment was high. In the 1920s, short films with sound were produced by the four Warner Brothers as a novelty, and to show these they eventually began to fit theaters with sound systems. In 1927, The Jazz Singer, a Warner Brothers film starring Al Jolson, was released as the first full-length talkie. It was basically a silent film that featured short bits of singing and dialogue; it became hugely popular in the Midwest. Another Warner release, The Singing Fool (also starring Jolson), was the breakthrough sound film. By the mid-1920s, Bell Labs had developed the sound recording system used by Warner Brothers. In the same decade, Fox studios also had a sound-recording system in place. In April 1927, five months before The Jazz Singer opened, Fox premiered newsreel footage with live sound. This system used by Fox, called Movietone, actually recorded sound directly onto film; it eventually became film's sound standard. The advent of sound on film boosted audience attendance, and by 1931, nearly 85 percent of America's twenty thousand theaters accommodated sound pictures. Classic Hollywood cinema By the time sound entered the film scene, Hollywood dictated the business and style of international moviemaking. The typical Hollywood film has three main ingredients that distinguish it: the narrative, the genre, and the author (or director). The narrative contains two basic elements: the story, or what happens, and the discourse, or how the story is told. The style that developed in early Hollywood film typically follows a believable set of cause-and-effect circumstances that take place in real time and space, approximating real life. In order to foster believability in a film, techniques like continuity editing, which provides a seamless transition between shots, were developed. Narratives are character driven, typically with a set hero and villain, and move towards a resolution of the conflicts that were created. As a rule, Hollywood films fit a genre ‒ that is, a category in which certain conventions and themes reoccur. It is advantageous for studios to produce movies that fit a preexisting genre because there is already a set standard, making it easier to market the film. Genres like the romantic comedy and the crime drama feature plots and character types that appear over and over; audiences can expect new ideas set in a familiar context. Besides variations of drama and comedy, other genres include musicals (which are costly to produce and have recently been on the decline), horror films, and film noir (which explores unstable characters and the sinister side of human nature). Although hundreds of people can be involved in the creation of a Hollywood film, the director is considered the primary author. D.W. Griffith, director of The Birth of a Nation and one of the first "star" directors, experimented with many of the narrative techniques still employed today, such as multiple story lines, close-ups, and fast-paced editing. Since Griffith's day, directors tend to leave their mark on a film, either through genre or style. For example, Alfred Hitchcock became famous for his suspense-filled dramas. With films like Dennis Hopper's Easy Rider in 1969 and George Lucas' American Graffiti in 1973, a new breed of director emerged. Schooled in New York and California, Coppola, De Palma, Lucas, Scorsese, and Spielberg brought their own styles and voices to cinema. Combining genres and techniques from other media with the traditional Hollywood narrative, these directors paid attention to the needs of a new generation, bred on television and rock and roll. While directors have become as well known in some cases as the actors that they use, it is important to note that in the United States there has historically been a lack of opportunity and recognition for female directors. In the history of the Academy Awards, only two females have been nominated for directing a feature-length film: Lina Wertmuller for the 1976 Seven Beauties and Jane Campion for 1993's The Piano. In most cases, female directors get their chance because of their popularity as an actress or success as a screenwriter. When she created Harpo Productions, TV star Oprah Winfrey became the third woman ever (after Mary Pickford and Lucille Ball) to have her own major, independent production studio. Most often, the best chance for female directors still remains outside the studio system. Outside the Hollywood system In 2004, U.S. films accounted for only 15 percent of the commercial films produced worldwide, but they brought in 90 percent of global box-office revenues. India actually has the world's largest film industry, nicknamed Bollywood, which produces around 1000 films a year. While American audiences initially showed interest in foreign films, the studio moguls effectively kept most of them from entering the country. Nonetheless, foreign-language movies did decent business in the 1920s, especially in ethnic neighborhoods in large cities. In the 1950s, smaller theaters, or art houses, began to spring up and offer alternative fare to audiences. These art houses numbered close to one thousand in the 1960s, but in the 1970s the introduction of video quickly began to pull those interested in foreign film away from theaters and into their homes. While few foreign films garner market share in the U.S., the success of Crouching Tiger, Hidden Dragon (the highest-grossing foreign film ever in the U.S.) may prompt a turnaround. Television news and documentary films can be traced back to the interest films and newsreels of the late 1890s. Interest films featured compiled shots of real-life occurrences, and newsreels featured short magazine-style bits of current news. The term documentary can be traced back to a film review in 1926 by John Grierson, a Scottish film producer. Grierson defined the documentary form as the "creative treatment of actuality." The documentary has developed an identity apart from commercial film, serving as an educational tool in most cases, with funding by independent or governmental backers. In the early 1960s, the development of the portable camera led to the emergence of the cinema verité (film truth) style of filmmaking. This style aimed to follow people where cameras could not go before, showing events in a gritty, realistic manner. Key players in the documentary field, like Robert Dew and Frederick Wisemen, used cinema verité to show audiences sides of questions that they would not get to see otherwise, bringing issues and concerns to light via their filming and editing. The major contribution of documentary filmmakers is their willingness to tackle controversial or unpopular subject matter. Documentaries have tackled such topics as the Vietnam War and gender and labor issues. Advances in film technology and the decreasing costs of portable technology in recent years have created a resurgence in independent film. Digital technology has made footing the bill for a film easier. Independent films are made cheaply, often using friends and students as the cast and crew. Successful independent filmmakers find audiences on college campuses, through video rentals, and occasionally through theaters that support independent releases. The recent proliferation of independent film festivals, especially the Sundance Film Festival held in Utah, has allowed these movies to gain critical acclaim and distribution deals over the past few years. With the financial success of cheaply produced but high-grossing movies like The Blair Witch Project, the independent scene has become a place for studios to scout for films and talent. 1. The narrative of a film includes the ____. a. plot b. actors c. editing d. none of the above 2. The first full-length talkie came out in ____. a. 1921 b. 1927 c. 1929 d. 1932 3. Which of the following best describes genre? a. a full-length narrative film b. a way to categorize film by nationality c. criteria used to determine film ratings d. a category of film in which certain plots and types characters appear over and over 4. Which of the following is NOT true regarding films made in the United States? a. Hollywood produces the highest percentage of films in the world b. Hollywood films earn the highest percentage of global box-office revenues c. Major studio films stick to well-known genres d. Few opportunities for female directors exist within the studio system 5. Documentary film ____. a. developed independently of commercial film b. documents reality c. focuses on issues often overlooked by commercial film d. all of the above Summary 4 Read the summary of the section of Chapter 7 titled "The transformation of the Hollywood system” and answer the multiple choice questions that follow. The transformation of the Hollywood system The rise of television in the mid-1940s marked the beginning of a decline in movie-going audiences. The growing number of homes with televisions (and later VCRs), in addition to the suburbanization of America, has led to changes in the way the film industry operates. The Hollywood Ten In 1947, as a reaction to the Cold War with the Soviet Union, conservative members of Congress began investigating Hollywood for communist ties. Fearing subversive messages being promoted by radicals in the film industry, members of the House Un-American Activities Committee (HUAC) asked prominent players in the film industry to declare their allegiance to the United States and to name those who could be suspected of communist tendencies. While in some cases it may have been out of fear of losing their jobs, some in the film industry named names, and the Hollywood Ten were subpoenaed. The nine screenwriters and one director refused to cooperate with HUAC and were jailed. After they were released, they found themselves blacklisted, or boycotted by major studios, and unable to work in Hollywood again. The Paramount decision In the mid-1940s, the government took a look at the business practices of the film industry and called for an end to the studios' monopoly over all aspects of the industry. With the "Paramount decision" in 1948, the courts finally put an end to vertical integration, forcing the studios to give up theater ownership. In truth, this ruling did little to change the oligopoly that the major studios held over the industry. They still controlled production and distribution, and producing the most polished films and controlling consumer demand allowed them to choose where which films would be seen. Moving to the suburbs While television was a factor in the decline of moviegoing audiences, the drop in attendance began well before TV was a staple in American homes. With the end of the war, the economy changed and there was a boom in the production of consumer goods. Money was now being spent on acquiring possessions instead of movie tickets, and many people were moving to the suburbs, away from urban movie theaters. Home ownership doubled between 1945 and 1950, peaking in 1950 at 1.7 million. Also, there was a significant drop in the age of married couples. This meant that there were far fewer dating couples attending the movie theaters. These factors, combined with people having less discretionary income available for movies, seriously affected movie attendance. Television changes Hollywood As American audiences turned to their radios and then television sets as their primary source of entertainment, the focus of movie content began to shift. Initially in response to changing times, movies began focusing on serious issues that television did not explore. Beginning with the film noir genre in the 1940s, movies began to increasingly address large social problems like drug abuse, alcoholism, and racism, which were taboo for television. Directors also explored sexual relationships that were off-limits on television. In another effort to hold onto film audiences, Hollywood developed Technicolor, which presented a far better quality of image than that of television. In addition, gimmicks like various wide-screen experiments, stereophonic sound, and 3-D films sought to lure audiences. However, these gimmicks failed to address the real problem: the middle-class move to the suburbs and away from urban theaters. Hollywood adapts to video Despite the theaters' superior sound and image, most American audiences prefer to watch movies at home. By 2004, box-office receipts accounted for just 20 percent of total film revenue, while about 50 percent of domestic revenue was made up of video/DVD sales and rentals. To keep this edge, TV manufacturers introduced stereo sound and digital screens that more closely replicate the theater experience. So though the number of people going to see films in theaters has dropped, the movie industry is making a profit. Second runs on television, along with videocassette sales and rentals, have become a major source of income. By 2004, about 92 percent of U.S. homes had VCRs, and 50 percent had DVD players. Video rental outlets like Blockbuster and Hollywood Video still make more than premium channels and pay-per-view channels. As video sales leveled out, the introduction of the DVD format in 1997 has created a resurgence in movie sales. It is expected that as DVD-player prices fall and more movie titles are released, the VHS format will disappear from stores. 1. Video/DVD sales and rentals make up ____ percent of domestic film revenue. a. 20 b. 40 c. 50 d. 70 2. Movie theaters lost many audience members to ____. a. television b. marriage c. the suburbs d. all of the above 3. The House Un-American Activities Committee (HUAC) did which of the following? a. made what is known as the "Paramount decision" b. shut down the film industry c. led to the jailing of the Hollywood Ten d. oversaw the rating of films 4. In 1948, the ____ called for an end to theater ownership by studios. a. HUAC b. Second World War c. FCC d. Paramount decision 5. In the forties and fifties, the film industry tried to keep audiences by ____. a. producing family-friendly comedies b. developing better picture and sound technology c. advertising on television d. opening more urban movie houses
The economics of the movie business/Popular movies and implications for democracy By the 1970s, the movie industry had realized the need for theaters in the suburbs. Multiscreen complexes either in malls or at highway crossroads brought in new, younger audiences. During this period, Jaws (1975) and Star Wars (1977) became the first movies to gross more than $100 million in a single year. Studios always hope to replicate the success of these movies and to produce one big blockbuster every year, but as 80 to 90 percent of movies fail to make a profit at the box office, studios often recover losses in foreign markets and through video revenue. Studios make money on a film in five basic ways. First, studios receive about 40 percent of box-office revenue. Second, video and DVD sales make up about half of a studio's domestic income. Third, studios make money from foreign film markets. Fourth, studios make money by acting as distributors for independent films. Finally, studios make money from product placement in films. As a rule, major stars and a film's director receive additional fees and percentages of a film's gross. The other actors, creators, and crew usually receive a flat one-time fee. Today, film exhibition, like production, is controlled by a few theater chains. By 2004, more than half of the theaters in the U.S. were controlled by just seven companies: Regal Cinemas, Loews Cineplex Entertainment, AMC Entertainment, Carmike Cinemas, Cinemark USA, National Amusements, and Hoyts Cinema Group. These leading chains have developed large megaplexes with upscale concession areas and stadium-style seating in an effort to make moviegoing a special event. While theater audience numbers have been increasing, the theater experience appeals mainly to a select group. Frequent moviegoers account for the majority of ticket sales but less than one-third of the overall population. In general, the audience is young. People under thirty account for more than 50 percent of attendance. Despite record numbers of ticket sales, theaters are losing money. The cost of building the new large multiplexes in the late 1990s skyrocketed, and theater chains began getting ahead of themselves financially. By 2001, AMC was the only large theater chain that had not filed for ‒ or come to the verge of ‒ bankruptcy. The major players Despite a comeback by MGM/UA films and the growing power of Dreamworks, the six major studios (Warner Brothers, Paramount, Twentieth Century Fox, Universal, Columbia Pictures, and Walt Disney Studios) accounted for more than 90 percent of the money generated by commercial films in the late 1990s. In an effort to recover from box-office losses in the 1980s, studios began to expand into television programming, print media, sound recording, electronic hardware and software, and theme parks. By the year 2000, studios relied on box-office receipts for only 20 percent of their income, as opposed to 80 percent in 1980. Today the film industry counts on heavy promotion to ensure a film's success and to maintain the economic stability of the industry. One of the most efficient ways to do this is known as synergy ‒ the promotion of a film throughout all the branches of a studio's company. This includes promoting the movie itself plus its book, soundtrack, and merchandise. Disney has been very successful with packaging youth-targeted movies with comic books, toys, cable specials, and theme-park attractions. For the most part, studios today are owned by large corporations. The first to be bought out was Paramount, which was sold to Gulf & Western Industries in 1966. Paramount is now owned by Viacom. The biggest development has been the globalization of the studios. Beginning in 1985 with the $1 billion buyout of Twentieth Century Fox by the Australian company News Corp, the major studios have been taken over by international companies. Columbia was bought by Sony, and Universal has gone through ownership by Matsushita, Seagram, and now Vivendi. This investment by international companies represents a new kind of vertical integration ‒ controlling the production of electronic equipment and the content that runs on that equipment. Sony is a good example of this new type of vertical integration. Even though foreign companies seek to have a part of American film, some governments in other countries have begun limiting the number of films that can be imported from the United States, both to promote growth of regional film industries and to blunt the impact of U.S. popular culture. Alternative voices The advent of digital video has quickly changed the face of filmmaking. Producing a digital film is cheaper and more convenient, as it allows for instant viewing for filmmakers. These developments are not limited to independent film, as a number of major directors, including George Lucas and Spike Lee, have begun to test the capabilities of digital video. The first fully digital release from a major studio was Time Code (2000). While presenting the opportunity to lower costs for studio films, digital video has opened doors for independent directors who would not have been able to afford to shoot on film. Digital production also allows for new venues of distribution, as it puts movies in the same format as CD-ROMs and Internet video. Web sites like IFILM.com and AtomFilms.com have given new filmmakers a chance to find an audience. Independent film may be hard to find, but the Hollywood film is alive, well, and easily accessible. Hollywood films provide a common experience: they function as consensus narratives, cultural products that speak to a wide audience. Internationally, there is a concern as to whether American culture is too influential. Do films help break down barriers and establish a common global culture, or does American moviemaking stifle the development of local cultures? In addition, as technology rapidly changes, competition and variety of available content will continue to be an issue. 1. What were the first two movies to gross over $100 million? a. Jaws and Star Wars b. Star Wars and E.T. c. Easy Rider and American Graffiti d. The Birth of a Nation and The Singing Fool 2. A fast-food promotional tie-in with a film is an example of ____. a. integration b. saturation c. monopoly d. synergy 3. Which of the following is NOT true of the digital filmmaking revolution? a. it lowers the cost of producing a movie b. it allows more opportunities for independent filmmakers c. Hollywood directors have not yet fully embraced it d. all of the above 4. The six major Hollywood studios ____. a. account for 75 percent of U.S. box-office revenue b. are all owned by American companies c. include Dreamworks d. account for 90 percent of commercial film revenue 5. Which of the following is NOT a way studios make money? a. a percentage of box-office receipts b. distribution of independent films c. video and DVD sales d. hiring nonunion production crews (http://bcs.bedfordstmartins.com/mediaculture/pages/bcs-main.asp ?v= chapter&s=07000&n=00050&i=07050.02&o=|00030|00010 |00020|00040|00050|&ns=0)
Focus Questions (2)
Questions
(http://bcs.bedfordstmartins.com/mediaculture/pages/bcs-main.asp ?v= chapter&s=07000&n=00050&i=07050.02&o=|00030|00010 |00020|00040|00050|&ns=0) V. Vocabulary Exercises A. Match the words (1-25) with the definitions (a-y).
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