the golden age of hollywood is the era of the studio system, from about 1927, when sound arrived, to 1948, when the supreme court's paramount decision began to dismantle it. eight companies controlled most american feature production in those years: the big five of metro-goldwyn-mayer, paramount, warner bros., 20th century-fox and rko, and the "little three" of columbia, universal and united artists. mgm was founded on 17 april 1924; rko, the last of the big five to form, was assembled by rca in 1928 out of the film booking offices of america and the keith-albee-orpheum theater chain.
the motion picture patents company, formed in 1908 with thomas edison's backing, pooled the patents for cameras, projectors and raw film and licensed only approved producers and exhibitors. the government's antitrust suit against it succeeded in 1915. producers outside the trust moved west to los angeles, where those patents were harder to enforce.
the majors were vertically integrated: they owned production studios, distribution arms and theater chains, so their own pictures were guaranteed bookings. loew's controlled mgm and the largest american circuit, and warner bros. bought the stanley theaters in september 1928 and a controlling interest in first national a month later. exhibitors were sold films in blocks, typically five at a time during the 1940s, with only one strong title among them. actors, directors and writers worked under long-term studio contracts.
the jazz singer (1927) pushed warner bros. into the front rank, and the industry converted to sound in 1928-29. the antitrust case that became united states v. paramount pictures, inc. was filed in 1938; in may 1948 the supreme court outlawed block booking and sent it back with language favoring divorcement of exhibition from production and distribution. rko's controlling owner howard hughes signed a consent decree in november 1948, and paramount followed in february 1949.
the system wound down as television took audiences. loew's severed its operational ties with mgm in 1954. hollywood's feature output fell from about 700 films a year in the 1920s to roughly 300 by 1957, when independent producers supplied half of american features. the majors moved into television production, and by the early 1970s their programs dominated prime time.
related profiles; Movie Studios, Movie Theaters, Double Feature Practice
sources; studio system, united states v. paramount pictures, motion picture patents company, metro-goldwyn-mayer, film studio, 334 u.s. 131
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