Studio System: Mass Production - Communications 150...

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Communications 150 January 26, 1999 Announcements: Dr. Jordan's office hours are canceled this Thursday. Lecture Notes: I. Studio System: Mass Production Factory style of making movies on basis of an assembly line process A single company would own the rights to a movie from the writing of the script to the exhibition in the theaters Motivated by economic efficiency o Costs were controlled and minimized because there was only one company o All profits went back to one company Movies were made in a very short period of time II. Vertical Integration Studios owned every aspect of movie making process: production facilities, distribution facilities, and theaters Promoted monopolistic business practices o Blind bidding Theater owners would bid in advance on movies that weren't even made yet Studio owners had guaranteed exhibition and audiences o Block booking Theater owners were forced into a contract with the studio for one year This system blocked independent producers from making their movies Studios owned all of the most profitable theaters, which were in urban areas Once the movies were becoming less profitable, they would filter out to theaters in rural areas o Run, zone, clearance
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Provided studios with the legal means to keep movies in major theaters Major theaters generated 70% of all box office receipts
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