The Main Changes That the Paramount Decree Effected on the Structure of the American Film Industry and the Measures the Ex-Studios Took to Remain in Control of the Film Market
Outline the main changes the paramount decree effected on the structure of the American film industry and discuss the measures the ex-studios took to remain in control of the film market.
The period of the 1920's to 1950's where known as the studio era in Hollywood. A few major companies monopolized the industry through vertical integration when the film companies controlled all production distribution and exhibition. The majors determined which movies were shown in which theatres, choosing their own over others. The theatres were often palaces, about spectacle and a night out more than the movie itself. Marcus Loew said , "we sell tickets to theatres, not movies" (pg 113 , Hollywood cinema, Maltby R, 2003). The majors forced independent theatres into block booking their movies. If they wanted to purchase an individual movie from the producers they had to buy them in blocks, which often included some low budget and less popular movies. "The system worked in the distributors best interest by ensuring a wider distribution for lower budget movies and preventing independent exhibitors from buying only the most successful product", (124, Hollywood cinema, Maltby R, 2003). The Paramount decree was passed in 1948 when the US supreme court ruled that the Hollywood majors control over distribution and exhibition of its product constituted an illegal monopoly and ruled that production and distribution be separated from the exhibition of movies. It marked the end of the studio era and the beginning of decades of changes in the industry made in order for the ex-studios to remain in control of the film market. After the paramount decree the Big Five studios , Twentieth century fox, MGM, Paramount, Warner Bros and RKO, were forced to sell off their theatre chains. The biggest problem the studios faced was that "the theatres had contributed more to profits than either production of distribution- production, of course, can only become a profitable activity as a result of
The period of the 1920's to 1950's where known as the studio era in Hollywood. A few major companies monopolized the industry through vertical integration when the film companies controlled all production distribution and exhibition. The majors determined which movies were shown in which theatres, choosing their own over others. The theatres were often palaces, about spectacle and a night out more than the movie itself. Marcus Loew said , "we sell tickets to theatres, not movies" (pg 113 , Hollywood cinema, Maltby R, 2003). The majors forced independent theatres into block booking their movies. If they wanted to purchase an individual movie from the producers they had to buy them in blocks, which often included some low budget and less popular movies. "The system worked in the distributors best interest by ensuring a wider distribution for lower budget movies and preventing independent exhibitors from buying only the most successful product", (124, Hollywood cinema, Maltby R, 2003). The Paramount decree was passed in 1948 when the US supreme court ruled that the Hollywood majors control over distribution and exhibition of its product constituted an illegal monopoly and ruled that production and distribution be separated from the exhibition of movies. It marked the end of the studio era and the beginning of decades of changes in the industry made in order for the ex-studios to remain in control of the film market. After the paramount decree the Big Five studios , Twentieth century fox, MGM, Paramount, Warner Bros and RKO, were forced to sell off their theatre chains. The biggest problem the studios faced was that "the theatres had contributed more to profits than either production of distribution- production, of course, can only become a profitable activity as a result of