3. com notes - :. country.Onlyowned17..Had .,,thebig5...

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Controlling exhibition: the big 5 studios were fully integrated. Did not own all theaters in the  country. Only owned 17%. They owned the biggest zone one movie palace theaters. Had  biggest share of ticket sales. Fox was big in northeast, warner bros big in west coast, the big 5  had agreements with each other. Agreed to show each others movies in each others theatres  (example of an oligopoly) agreed not to show other studios films.  Independent theaters: zone 2 and zone 3 (ex. Princess theater)  - Block Booking - we will sell you our movies but only in blocks of ten (usually includes 2 A  movies and the rest B movies) only way they could get access to the A movies was to get the  block of ten. Getting so many movies that they weren’t looking anywhere else. Studios  became factories churning out movies. Made over 60 a year. Most were B movies cheaply  made.  The End of the Studio System  - The Paramount Decision  (1948) supreme court decision, one of the big 5… taken to court.  Their business model was an unfair oligopoly. They told studios that you have to break up  your vertical integration. They decided to divest themselves (sell off the theaters they owned).  They could no longer be in the business of owning theaters.  - The Red Scare - late 40’s early 50’s, America was caught in a panic after WW2 when saw soviet  gain power. Led to congressional investigation. Suspected communists were infiltrating  Hollywood. Because it had such a huge influence on our culture. Many stars, producers,  directors etc. were questioned. The Hollywood 10 sent to jail. The Huack hearings had 2  negative impacts. It was bad PR for the industry, and all of this attention and paranoia had a  chilling effect on the creativity in the industry because everyone was afraid of being  questioned.  -Suburbanization-  people no longer living in same neighborhoods, people starting to live in  places where there were no theaters. They used to walk past theaters on their way home but  now they were going home to suburbs.  - Television-  presented a head to head competitor. People were going to movies 3 or 4 times a  week but with TV you didn’t have to leave home, you could watch entertainment for free.  Blockbusters and Indie Films November  8,  2011 I.  The Industry Responds to the Crisis  A. Downsizing - could no longer afford to produce all those movies every year. Had to liquidate many studios etc… to make money and because they weren’t using. Stopped the practice of having long term contracts with their employees.
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