Film Production In The Majors example essay topic

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 distribution and exhibition" (pg 7 Hillier J, 1992, The New Hollywood). Changes had to be made in order to make distribution of productions profitable.

The studio system worked on permanent studio facilities with a highly paid roster of stars and an extensive payroll of technicians and staff. It soon became clear that the number of films produced had to be cut so the studios abandoned contracted staff and permanent studio facilities as they were on longer in constant demand. Stars whos contracts were cut received tax breaks from investment credits in setting up their own production companies. "Burt Lancaster and his agent Harold Hecht formed the Hecht- Lancaster company in 1948 while Randolph Scott and producer Harry Joe Brown formed Ran own productions in 1955" (pg 8 Hillier J, 1992, The New Hollywood).

This rise in independent production did serve to diversify the industry as intended by the anti-trust cases. The film industry also took advantage of foreign government grants and cheaper labour by making films abroad. "between 1967 and 1972 some 45% of the 1,200 features made by US companies- not all A pictures were made abroad" (pg 8 Hillier J, 1992, The New Hollywood). The independents did not have the distribution facilities the majors had and their companies were set up to produce only one or two movies at a time. The big studios stepped in to co-finance the distribution of independent productions.

"The rolling production programme of the studio system was replaced by one-off independent productions backed by a studio for all or part of their financing" (pg 9 Hillier J, 1992, The New Hollywood). As well as finance the studio backing the independent production would also rent them studio facilities. The studios possessed lucrative assets from the studio era. The large studio lots were prime real estate and they had the libraries of old films.

Film production in the majors was a good investment as the possessed established distribution networks for the product. The industry also from the new system by affording directors greater creative freedom, and the opportunity to move from B-movie production to feature film production. They took on more responsibility and had more time to work on the production. "since the late 1960's it has been common for directors to average only one feature every year and a half, two years, whereas at the height of the studio system, a John Ford or George Cu kor might regularly have made two or even three major features a year. There were serious implications for the way in which directors learned their craft". (pg 9 Hillier J, 1992, The New Hollywood). Independent film production increased the importance of agents in the system. After contracts were dropped, staff went to agents who brought them together with a script and a director and a package to studios, for film projects. "by the 1960's two thirds of films being made were pre-packaged by agents...

Agents continued to grow in importance to such an extent that by the 1980's, Michael Ovi tz, president of CAA, was being the single most influential person in the movie industry", (pg 9 Hillier J, 1992, The New Hollywood). With fewer films in production after the Paramount decree, there were fewer films to maintain the profitability balance and offset losses, as a result there was a need for greater profits. Blockbusters became the industries idea of sure fire profit. New technologies were utilized in order to make cinema something new and exciting. In order to compete with the increasing loss of audience to television, studios began making more films in colour. Cinerama was used for travel documentaries in the 1950's, widescreen made its debut with Cinemascope and 3 D made and appearance.

All provided the opportunity to raise ticket prices to offset falling audience figures. The blockbuster theory caused massive losses in the 1960's when, following the success of 'The Sound Of Music' the studios produced more films of similar budgets in the hope of emulating its success. It was a disaster, causing huge losses. Fox lost $77 million in 1970. in the same decade television networks be gain producing films, however only for a short period as it resulted in losses. The majors began believing only a minority of films were making money and needed big budgets in order to have any chance of profit. As well as the loss of its theatres the majors also had huge drops in attendances to contend with.

"Average weekly cinema attendances in the North America Market had reached a high of 80 million in 1930, declined sharply during the depression (to 50 million in 1933-34), but then rose steadily to 84 million in 1943-44, staying very high for the next few years. But between 1946 and 1957 attendances halved, and they halved again between 1957 and 1964-65. The low point was 17 million in the early 1970's". (pg 13 Hillier J, 1992, The New Hollywood). Television was the main instigator in this huge audience drop, over half of American homes owned a television by 1955.

After world war two, America saw a huge population migration to the suburbs, taking with it the audiences attending the inner city theatres. This brought with it growth in home ownership and car ownership, leaving less expendable income for leisure pursuits such as the cinema. The industry again adapted to these changes, cinema ticket prices rose and the studios increased their share of ticket sales. The suburban drive-in was established. The drive-ins were situated in suburban neighborhoods to entice families back to the movies. They also represented the cheapest way to set up theaters in suburbia.

They were marketed as "the answer to your sitter problem, and to the down town drinking problem... The answer to the young families night out" (pg 164 Maltby R, Hollywood Cinema, 2003). There was often a playground under the screen where parents could simultaneously watch the movie and their kids. They provided a complete family night out, "As well as a playground, a deluxe drive-in accommodating 2000 cars or more would contain a cafeteria with snack bar, and laundry facilities so that families could finish their chores while watching the movies.

Some offered shuffleboard, horseshoes, miniature golf, wading pools, baby bottle warmers, firework exhibitions, facilities for the family cat or dog, free pony rides, or petting zoos". (pg 164, Maltby R, Hollywood Cinema 2003). However, with both families and waned when they became popular with working class teenagers and were seen to encourage promiscuity and delinquency. They were never really viewed by the studios as adequate locations for their productions. The numbers of drive-ins went into decline in the early 1980's when land values increased and the sites value rather than revenue was higher. "The 1970's and 1980's saw the rise of multi screen complexes, very often associated with shopping centres, exploiting the integration with other consumer and leisure activity, and making use of the extensive car parking space on which malls depended". (pg 14 Hillier J, 1992, The New Hollywood). This allowed for success to be gauged and movies rotated from larger screens to smaller ones as a result.

Over seas markets provided half the rental values of American movies. The majors were able to exploit overseas legislation and combine their resources in distribution. In 1977 Paramount and Universal formed CIC (Cinema International Corporation), with MGM / UA joining them in 1981, cornering a third of the world market. 85% of film rentals in Britain were American at this time. (Hillier J, 1992, The New Hollywood).

Ownership shifted over the decades. Paramount and warner bros were taken over by. Fox turned to its television interests for profit and MGM sold land and cut back production in order to stay afloat. (pg 11 Hillier J, 1992, The New Hollywood). The industry as a whole although damaged by televisions popularity had to seek ways in order to work with it and recoup some losses. They began producing telefilm's and selling old films to the networks. Networks had airtime to fill and the extensive back catalogues owned by the majors was an obvious choice of material to fill it with.

With an average leasing fee of $14,000 in the 1960's the prospect of future sale to television became a calculation incorporated in all productions. Television production required studio facilities and personnel. The studios moved production from New York to Hollywood and by the 1960's was producing 70% of primetime TV". The majors thus achieved their objective of entering and dominating telefilm production to balance theatrical business earning as much as a third of their total revenue (some $300 million a year) from this source by the mid 1960's. (pg 12 Hillier J, 1992, The New Hollywood). Television was less glamorous work that movies but it paid the bills.

Although a new series required a large investment was also less of a risk for losses that movies. Television became a crucial part of the studios profits and survival after the paramount decree. The 1980's saw huge changes in distribution with the introduction of cable television, satellite technology and video. "for the first time revenues from these sources began to regularly overtake those from theatrical release". (pg 15 Hillier J, 1992, The New Hollywood). Video cassette recorders were in half the households of america by 1981. this increased marked gave way to increasing production once more.

Further consolidation followed in HBO and CBS combined to guarantee theatrical distribution through Columbia and cable delivery through HBO, while CBS would distribute the films on video (rental then retail) and show them on the CBS network. (pg 15 Hillier J, 1992, The New Hollywood). With so much competition in the form of cable, video rental, pay television, and network television, theatres still held an important role in the industry. Also it was a good gauge of how well a movie was going to do". the theatrical life of a movie does most to establish its value as it goes through its distribution cycle, from theatrical exhibition through home video rental, pay television and cable showing, video retail sale, network television transmission, to re-release on cable and syndicated television". (pg 16 Hillier J, 1992, The New Hollywood). With huge injections of money into films in the hope of success Hollywood soon began to recognize the importance of promotion, and promotion budgets rocketed, sometimes to more than the cost of the film itself. A film was costing little to make with the stars wages and promotion costs deducted. By the 1980's majors producing major features were playing it safe, releasing fewer original products and basing most of their work on successful books, plays or in fact their own movies.

The Sequel was often more expensive and less successful than its predecessor but provided a guaranteed profit. Studios recognized that outside their regular audiences most cinema goers did so only two or three times a year. These groups were often families attending during holidays, like Christmas, Easter or during the summer. Studios began releasing 'event movies'.

Big budget blockbusters, with promotional hype around them. The studios moved with the times and survived the Paramount decision. What had seemed a devastating blow at the time was accompanied by a huge drop in audience numbers with the advent of television and the population migration to the suburbs. The majors restructured, and were able to adapt in order to fit in with the changing times and remain profitable. "the overall changes which came in the wake of the consent decrees and other factors amounted essentially to a restructuring rather than a revolution and allowed the majors to retain command of the market". (pg 9 Hillier J, 1992, The New Hollywood). Its has been a long process of integration into the more diverse leisure industry we enjoy today.