The Studio System in the 1930s and 1940s: How Studios Controlled Theater Showings

During the 1930s and 1940s, the Hollywood studio system created a tightly controlled environment where theaters were often limited to showing films from particular studios. This article explores how this system operated and the scrutiny it faced, especially from the perspective of vertical integration in the film industry.

Vertical Integration in the Film Industry

The era of the Hollywood studio system from the 1920s through the early 1950s was primarily defined by the vertical integration model. This model was characterized by the large film studios also owning and operating numerous theaters. These conglomerates weren't just focused on creating content; they were in charge of both producing and distributing it, ensuring their films were the primary offerings in the theaters they controlled.

The Dominance of Metro-Goldwyn-Mayer (MGM)

Among the vertically integrated studios, Metro-Goldwyn-Mayer (MGM) stood out. MGM was a major player in the American film industry from the 1920s through the 1960s. At one point, Metro-Goldwyn-Mayer was owned by Loews Incorporated and had the largest number of U.S. theaters. Its ownership extended to the MGM Grand Hotel in Las Vegas and nearly every major theater in Hollywood. MGM's success was fueled by its vast distribution network and exclusive control over the theaters that showed their films. This control was so complete that even smaller towns could experience consistent MGM film releases, with a single theater often being one of the few if not the only venue showing MGM films.

Other Major Studios

MGM was not alone in controlling theater showings. Other major studios, including Paramount Pictures, Warner Bros., Twentieth Century-Fox, and RKO Radio Pictures, all followed this model. These vertically integrated studios owned or controlled a significant number of theaters, allowing them to exert a powerful influence over the film exhibition landscape.

Notable Exception: Warner Bros.

While many studios could dominate theater showings, Warner Bros. is a prime example of a studio that pushed the boundaries. Warner Bros. embraced the new technology of sound films, which many other studios were resistant to. This technological advantage, combined with strategic acquisitions like First National Pictures and its Burbank studio, helped Warner Bros. rise to “major Hollywood player” status. The studio used profits from successful “talking pictures” to purchase theater chains, establishing control over both content creation and exhibition.

The Impact of the Studio System

The studio system was a crucial factor in the creation and distribution of films during this era. The integration of film studios into the theater exhibition business was both a driving force behind the success of Hollywood and a subject of scrutiny. Government investigations into these practices led to legal challenges, primarily focused on the anti-trust laws. Nevertheless, for many communities, the dominant studio's films often dominated the local cinema landscape.

For example, a theater in a small town in the 1930s might have been a venue only for Warner Bros. films, showcasing films like "Amour Humain" or "Tons of Brains," both produced by Warner Bros. The vertical integration model allowed such theaters to showcase a consistent lineup of films from a single studio, even in areas with limited options for diverse entertainment.

Conclusion

The Hollywood studio system in the 1930s and 1940s created a peculiar and often dominant relationship between film studios and theater ownership. This system ensured that theaters were limited to showing films from the controlling studio, influencing not just the films that people watched but also the cinema experience itself. While the studio system was undeniably powerful, it also faced significant scrutiny, ultimately leading to major changes in the film industry.