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Vertical Integration in Hollywood: Power over Production, Distribution, and Exhibition, Schemes and Mind Maps of History of film

The significance of vertical integration in the Hollywood film industry during its Golden Age. The 'Big Five' studios, including Fox and 20th Century Pictures, controlled every stage of a film's life, from production to distribution and exhibition. By owning cinemas and forcing exhibitors to buy packages of films, they secured a near monopoly on the market. However, the end of vertical integration in 1948, due to regulatory actions and the rise of television, led to increased competition and changes in the industry.

What you will learn

  • What were the consequences of the end of vertical integration in the film industry?
  • How did the rise of television impact the film industry?
  • Which studios were part of 'The Big Five' in Hollywood?
  • How did vertical integration benefit the major Hollywood studios?
  • Why did the studios force exhibitors to buy packages of films?

Typology: Schemes and Mind Maps

2021/2022

Uploaded on 09/12/2022

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Hollywood
Why is Hollywood such a
successful film industry?
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Download Vertical Integration in Hollywood: Power over Production, Distribution, and Exhibition and more Schemes and Mind Maps History of film in PDF only on Docsity!

Hollywood

Why is Hollywood such a

successful film industry?

Hollywood

"The Big Five," major studios realized they

could maximize their profits by controlling

each stage of a film's life:

  • production (making the film),
  • distribution (getting the film out to

people),

  • exhibition (owning first-run cinemas in

major cities).

  • "The Little Three" studios also made

pictures, but each lacked one of the crucial

elements of vertical integration.

  • Together these eight companies

essentially controlled the entire market.

The end of Hollywood's Golden Age In 1948 the studios were ordered to give up their cinemas, opening the market to smaller producers. This, coupled with the advent of television in the 1950s, seriously compromised the studio system's power and profits. Hence, 1930 and 1948 are generally considered bookends to Hollywood's Golden Age, the period when these eight companies secured 95 percent of all film rentals and close to 70 percent of all box-office receipts.

So, Vertical integration has gone, making

the Hollywood studios more competitive?

Case study:

Type Subsidiary of News Corporation

Industry Film

Founded May 31, 1935,[1]^ by merger of Fox Films (founded in 1915)

and 20th Century Pictures, Inc. (founded in 1929)

Founder(s) William Fox

Joseph M. Schenck

Darryl F. Zanuck

Raymond Griffith

William Goetz

Headquarters Fox Plaza, Century City, Los Angeles, California, United States

Products Motion pictures, television films

Owner(s) Independent (1915–1985)

News Corporation (1985–present)

Parent Fox Entertainment Group

Divisions 20th Century Fox Animation

Fox Animation Studios

Fox 2000 Pictures

Subsidiaries Fox Searchlight Pictures

Fox Atomic

Fox Interactive

20th Century Fox Home Entertainment

Fox Television Studios

Blue Sky Studios

20th Television/20th Century Fox Television

Fox Star Studios

Website www.foxmovies.com

Type Subsidiary of News Corporation Industry Film, television Founded 1990s Headquarters Fox Plaza, Century City, Los Angeles, California, United States Key people Jim Gianopulos, Chairman, CEO Products Motion pictures, Television programs Revenue $13.28 billion USD (2004) Operating income $2.9 billion USD (2004) Net income $1.85 billion USD (2004) Owner(s) News Corporation Employees 12,500 (2004) Parent News Corporation

Some of those names for this year:

  • BV = Buena Vista – a subsidiary of Disney
  • P/DW = Paramount Dreamworks
  • Gold = Samuel Goldwyn Studios (ex-

MGM)