1. HOLLYWOOD THEN TO NOW

2. Aims & Objectives
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To compare Hollywood Then: the Hollywood
Studio System (1927-1948) to Now: the packageunit system (1948-present)
To highlight the similarities and differences
between Hollywood Then to Now
To identify key determinants shaping change
between Hollywood Then to Now

3. Hollywood Then: The Studio System
In the 1920s motion pictures became the
most popular form of entertainment and
leisure activity in America
 As Wall Street invested heavily in motion
pictures, five major Hollywood studios and
three smaller ones consolidated power to
dominate the world market


4. Hollywood Then: Ownership
The Big Five
 Paramount
 Loews(MGM)
 Fox
 Warner
 RKO
Little Three
 Universal
 Columbia
 United Artists

5. Hollywood Then: Financing
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Hollywood during its Golden Age between the
years of 1927-1948 operated a mode of production
called the studio system
The studio system was an early form of vertical
integration
All stages of production including screenplays,
financing, production, post production,
distribution and exhibition were owned and
controlled by the studios to maximise their profits

6. Hollywood Then: Production Practice
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The Hollywood studio system of film-making to
type as genres with stars in the leading roles
standardised the filmmaking process
All film personnel from director to creative,
technical crew to actors were employees of the
studio

7. Hollywood Then: Production Practice
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Each production house had a uniform style and
specialised in a particular genre such as the MGM
musical
Exceptions to the rule were directors such as
Alfred Hitchcock, John Ford and Orson Welles
who fought to work within the system and
establish their own styles

8. Hollywood Then: Stardom
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The star system allowed the Hollywood studios to
‘manufacture’ the success of young actors and
new films
Studios and stars began to specialise in particular
styles, genres and roles
MGM employed Judy Garland when she was only
16 to star in the Wizard of Oz, while Paramount
contracted The Marx Brothers to write and star
in comedies

9. Hollywood Then: Stardom
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Relatively unknown actors would be groomed for
stardom, given new names, personas and lifestyles
that would create positive publicity for the
industry
In return, actors were subject to restrictive
contracts of up to seven years, with relatively
small salaries and few holidays between films
This allowed studios to put out more than 500
films a year (each)

10. Hollywood Then: The Stars

Cary Grant

Katharine Hepburn
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Joan Crawford

Clark Gable

Rock Hudson

Betty Davis

Humphrey Bogart

Judy Garland

11. Hollywood Then:
Distribution & Exhibition
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The only means of distributing and exhibiting a
film was through theatrical release (cinema
exhibition)
The Big Five showcased their best films in
studio-owned picture palaces
To gain access to the most popular films, small
local cinemas had to buy exclusive-run deals from
the studio
This block booking meant studios could push out
the competition

12. Hollywood Then to Now:
The end of the Golden Age
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In 1948 the United States government on behalf of
MGM brought a lawsuit against Paramount
Pictures for block booking
The resulting 1948 anti-trust laws in America
made this practice illegal. The result, effectively
brought the studio system and Hollywood’s
Golden Age to a close

13. Hollywood Then to Now:
The rise of the independents
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The end of the block booking system and the
increase in television viewing meant big losses for
the studios in the 70s
MGM, Paramount and Universal began renting
their equipment and lots to young independent
directors such as Francis Ford Coppola, Martin
Scorcese and Steven Spielberg

14. Hollywood Then to Now:
Production - The Director as auteur
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With the collapse of the studios, the producers and
executives no longer had the power to control
creative film-making
The influence of a new wave of filmmaking from
France (Nouvelle Vague), encouraged Hollywood
independents to experiment and develop their own
unique styles

15. Hollywood Then to Now:
Production - The Director as Producer
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During the 1970s young graduates of new film
schools in California began raising money and
negotiating their own deals for films
The success of films by Spielberg such as Jaws
and Close Encounters of the Third Kind and
Scorsese films Mean Streets and Alice Doesn’t
Live Here Anymore proved that popular film
audiences would accept variety and change

16. Hollywood Now: Ownership
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During the 1980s, large multi-national businesses
began to include media companies in their
practices of merger and acquisition
As a result the major Hollywood studios have
gone through many ownership changes

17. Hollywood Then to Now: Columbia
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Independent until 1982
Owned by Coca Cola 1982-1987
Independent holding of Coca Cola 1987-1989
Owned by Sony 1989 to present

18. Hollywood Then to Now: Universal
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Independent to 1982
Merged with International Pictures 1946-1952
Owned by Decca 1952-1962
Owned by MCA 1962-1990
Owned by Matsushita electric 1990-1995
Owned by Seagram 1995-2000
Owned by Vivendi (who bought Seagram) 20002004
Owned by General Electric 2004 to present

19. Hollywood Then to Now:
20th Century Fox
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Independent to 1985
Owned by News Corporation 1985 to present

20. Hollywood Then to Now:
Paramount Pictures
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Independent to 1966
Owned by Gulf & Western 1966-1984
Owned by Paramount Communications (new Gulf
& Western Co) 1984-1993
Owned by Viacom 1993 to present

21. Hollywood Then to Now:
Warner Brothers
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Independent to 1967
Owned by Seven Arts productions 1967-1969
Owned by Kinney National 1969-1975
Kinney now named Warner Communications
1975-1989
Merger with Time Publications 1989 to present

22. Hollywood Then to Now:
Metro-Goldwyn-Mayer
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Independent to 2005
Owned by Sony (as part of its Columbia-Tristar
stable) 2005 to present

23. Hollywood Now
The Package-unit system
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Studios no longer have long term exclusive
contracts for creative personnel
Writers, directors, producers and stars are able to
negotiate their deals with majors using agents and
the media
Agencies not studios now negotiate ‘creative
personnel packages’ with film companies

24. Hollywood Now: Stardom
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Hollywood filmmaking is still dependent on the
strong relationship between the hero(ine) in the
film and audience identification with that
hero(ine)
Stars have always been important vehicles by
which a film is financed and marketed
20th Century Fox Films specialises in the action
genre; many of them starring Bruce Willis

25. Hollywood Now: The Stars

Tom Cruise
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Brad Pitt
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Julia Roberts
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Angelina Jolie
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Bruce Willis
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Nicole Kidman
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Toby Maguire
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Johnny Depp

26. Hollywood Now: Stardom
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Actors and their agents, not studios manage their
own careers
Actors can negotiate their own salaries, often
earning millions per film
A star presence in a film cannot guarantee box
office success alone

27. Hollywood Now: Famous Flops
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The Stepford Wives (2004) starring Nicole
Kidman has reported losses of up to £50,000,000
The Manchurian Candidate (2004) had a budget of
£45,000,000, spent £20,000,000 on marketing and
lost £7,000,000

28. Hollywood Now:
Distribution & Exhibition
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Film revenue however is no longer solely
dependent on box office receipts
The increasing importance of distributing films
through many windows is now what secures a
film’s financial success
From 1950 to mid-1970s, the film majors
exploited the popularity of television selling films
to networks and syndicates

29. Hollywood Now:
Distribution & Exhibition
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In 1975, the introduction of Time Inc Home Box
Office TV and Sony’s Betamax VCR provided the
film industry with new outlets for their products
Video, DVD, television, cable, satellite, internet
and digital channels are new ‘alternative
distribution windows’

30. Hollywood Now:
Typical Distribution Sequence
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Initial theatrical release of six months
DVD window for an indefinite period – Many of
the majors now have own DVD labels and rental
companies so they do not need to sell video rights
to another company
Pay/subscription/digital television window for
approximately one year
Terrestrial television window

31. Hollywood Now:
Distribution & Exhibition
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Today a major financier-distributor stands
between the producer and the exhibitor
For the most part the distributor dictates the terms
of its deal with the exhibitor as well: the nature of
the run, the length of the engagement, the
advertising to be employed and the financial split
of box-office receipts between various parties

32. Hollywood Then to Now:
Summary Review of Similarities
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The major players from the Hollywood Studio Era
still dominate in the areas of production, finance
and distribution of commercial films in America
Stars are still important to finance packages and
marketing deals for films

33. Hollywood Then to Now:
Summary Review of Differences
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Shift from studio to package system of production
Creative personnel are able to negotiate
independent short-term deals rather than long-term
contracts with studios
Directors as auteurs
Shift in power from exhibitor to distributor