the u.s. film industry: a historical overview

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The U.S. Film Industry: A Historical Overview J412/J512 U.S. FILM INDUSTRY OCTOBER 3, 2013

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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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Page 1: The U.S. Film Industry: A Historical Overview

The U.S. Film Industry:A Historical Overview

J412/ J512 U.S . F ILM INDUSTRYOCTOBER 3, 2013

Page 2: The U.S. Film Industry: A Historical Overview

Reading Quiz What is the “new abnormal,”

as discussed in Lynda Obst’s article?

Page 3: The U.S. Film Industry: A Historical Overview

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).

Page 4: The U.S. Film Industry: A Historical Overview

The Early(US) Film Industry

J412/5129/27/12

Page 5: The U.S. Film Industry: A Historical Overview

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.

Page 6: The U.S. Film Industry: A Historical Overview

Fred Ott’s Sneeze, 1894

http://www.youtube.com/watch?v=8PaJ1r0udvQ

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Film as novelty

http://www.youtube.com/watch?v=4nj0vEO4Q6s http://www.youtube.com/watch?v=agvQxm_nPIw

Page 8: The U.S. Film Industry: A Historical Overview

Film as Business

Page 9: The U.S. Film Industry: A Historical Overview

From 1908:Beginnings of anIndustrial Structure

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Mass Production Growth of narrative format

“Director” system

Companies: Edison, Biograph, Vitagraph, Kalem, Essanay, Lubin, plus small producers

Page 11: The U.S. Film Industry: A Historical Overview

Struggle for Control: Patent Wars

Page 12: The U.S. Film Industry: A Historical Overview

Locations of Film Industryin Early 1900s

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New York

Vitagraph Company of AmericaEdison Kinetoscope Parlor

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Fort Lee, NJ

Moving Pictures Studios West

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Film Clip: “Hollywood East”

Motion Picture Set, 1912

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Hollywood

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Golden Era of Hollywood(APPROX. 1920S-1950S/1960S)

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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

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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).

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Business Strategies Block booking Run, clearance and zoning

Admission price discrimination

Page 21: The U.S. Film Industry: A Historical Overview

Watch at Home: “A Trip Through a Hollywood Studio”

HT TP://WWW.YOUTU BE.COM/WATCH? V=WFUA MJ ITY-0

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Anti-Trust andthe Paramount Decrees

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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

Page 24: The U.S. Film Industry: A Historical Overview

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

Page 25: The U.S. Film Industry: A Historical Overview

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

Page 26: The U.S. Film Industry: A Historical Overview

From Film Industry to Entertainment Industry

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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).

Page 28: The U.S. Film Industry: A Historical Overview

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

Page 29: The U.S. Film Industry: A Historical Overview

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:

Page 30: The U.S. Film Industry: A Historical Overview

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:

Page 31: The U.S. Film Industry: A Historical Overview

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)

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Location of Film Industry / Alternatives to Hollywood

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Outside the Hollywood System

Artistic cinema Minority films Exploitation films Documentary films Industrial films

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Pacific NW & Hollywood

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Questions?