The heyday of the Hollywood film industry was astounding for its size and power but, how did it become that way? What was it about the studio system that created such power? The answer is market control. Through market control, the big film companies had command over what was done and seen.
The arrival of the studio system made everything easy for studios; every step was in a single place and under the studio’s control. The market control of the studios was a critical aspect in the studio system. With control of the entire market the studios were able to make every decision. The studios owned most of the theaters where they showed what they wanted which usually meant any film that directly benefited themselves. The big studios even worked together where they would show each other’s films in their theaters as well as share their stars. The decisions were in their hands whether it is about where the films were sent out or how they were produced it was all done under the studio’s wants. Because of this, the studios produce any film they wanted. Since they had control of the theaters, they had all the say in what films were made and seen. The films reflected the interests of the studios. This does not mean that the studios ignored the audience but it does mean they had a lot of room with how much of the audience feedback and wants they saw as relevant or useful. From this complete control, it kept all of competition. There was no way for their productions to be sent out or seen. This caused a great deal of concern and displeasure by those on the outside and eventually led to legislative action.
In the 1940’s the federal government filed suit on the actions of the big production studios. The federal government took notice of the unfair practices on the part of the studios and their control of the theaters. The decision was made that the studios had to let go of their hold of the theaters, they could no longer have possession of their own theaters. This decision played a key role in the ensuing drop off of the film industry.
Market control is an aspect of the studio system that defined the film industry’s success at the time. It put all decisions and power in the hands of the studios. This led to the studios mainly serving their own interests as well as keeping competition out. What was seen by audiences at the time was a direct view of what the studios wanted to portray. With all of this going on a suit was filed by the U.S. federal government which led to the studios giving up their ties to movie theaters. It is obvious to see how through the big studios control of the many aspects of the market how the film industry became so powerful and profitable but, ultimately this led to their huge loss in control.
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