Hollywood's studio system revolutionized filmmaking in the early 20th century. Big studios controlled every aspect of the movie-making process, from production to distribution, creating a monopoly that dominated the industry for decades.

This system shaped how movies were made and watched. Studios owned theater chains, used block booking, and managed actors through long-term contracts. The Production Code also influenced content, setting moral guidelines for films.

Studio System Structure

Vertical Integration and Studio Dominance

• Vertical integration allowed studios to control all aspects of filmmaking from production to distribution and exhibition
• Big Five studios (Paramount, MGM, Warner Bros., 20th Century Fox, RKO) dominated the industry through vertical integration
  • Owned their own theater chains, ensuring their films would be shown
  • Controlled the majority of the market share and had the most power
• Little Three studios (Universal, Columbia, United Artists) were smaller and less vertically integrated
  • Did not own their own theater chains, making it harder to distribute their films
  • Relied on the Big Five for distribution and exhibition
• Studio moguls, powerful executives who ran the studios (Louis B. Mayer, Jack Warner, Darryl F. Zanuck), made all the key decisions
  • Determined which films were made, who was cast, and how they were marketed
  • Wielded immense control over the creative process and the careers of actors and filmmakers

Distribution and Exhibition Practices

Block Booking and Theater Control

• Block booking required theaters to buy a studio's entire slate of films, sight unseen, in order to get the most popular movies
  • Ensured that even lesser-quality films would be shown and generate revenue
  • Gave studios leverage over independent theaters and limited competition
• Studios owned and operated their own theater chains, giving them complete control over where and when their films were shown
  • Allowed them to prioritize their own films over those of competitors
  • Enabled them to manipulate the market and maximize profits

Backlots and Efficient Production

• Backlots, expansive studio properties with standing sets and soundstages, allowed for efficient, assembly-line style production
  • Films could be shot quickly and cheaply, with multiple productions happening simultaneously
  • Provided a controlled environment for filming, minimizing the need for location shoots
• Centralized production on the studio lot enabled tight control over the filmmaking process
  • Studio executives could easily oversee multiple projects and ensure they adhered to the studio's standards and style
  • Fostered a factory-like approach to filmmaking, with specialized departments handling different aspects of production

Talent and Content Control

Star System and Actor Contracts

• Star system promoted and marketed actors as larger-than-life personalities to draw audiences
  • Studios carefully crafted the public images of their stars to fit specific archetypes (glamorous leading lady, rugged hero)
  • Stars became valuable commodities, with their popularity often eclipsing the films themselves (Clark Gable, Bette Davis)
• Contract players were actors signed to exclusive, long-term contracts with a particular studio
  • Required to appear in whatever films the studio assigned them, often with little creative control
  • Contracts could be restrictive, dictating an actor's personal life and limiting their ability to work for other studios

Production Code and Content Restrictions

• Production Code, also known as the Hays Code, established moral guidelines for film content
  • Prohibited the explicit portrayal of certain topics (sex, violence, drug use) and required that films promote traditional values
  • Enforced through a system of self-censorship, with studios submitting scripts for approval before production
• Studios adhered to the Production Code to avoid controversy and maintain a wholesome public image
  • Films that violated the code could be denied a release or face boycotts from religious and moral groups
  • Led to the creation of a standardized, formulaic style of storytelling that emphasized happy endings and clear-cut morality