ESSAY TWO Sound is the first time that Hollywood and other national cinemas needed to go outside of the movie business to capitalize these ventures from bankers, etc. This change brought purely financial professionals into the decision making circle of Hollywood. One of the reasons why the conversion to sound was put off was to get Wall Street financial backing. Sound in film was introduced simultaneously with the stock market crash of 1929. Because of the need to turn to outside industry financing the conversion was highly resisted by studios. It also led to an international cartel for the sale of sound equipment. This brought about a war between Vitaphone, who controlled the United States, Canada, Austrailia, India and the USSR, and Tobis-Klang Film who had exclusive rights to Germany, Scandinavia and Eastern/Central Europe. The conversion to sound required large capitalization for production and exhibition. The introduction of sound shows how the globalization of film and film technology was at a higher level than it was in the late
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Stock Market Crash, Sound film, Early Sound films, purely financial professionals, Street financial backing