What Was the “Studio System” in the Golden Age of Hollywood?

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The big picture

  • Hollywood's Golden Age was defined by the studio system, when the “Big Five” and the “Little Three” controlled every aspect of film production.
  • The star system and block booking were key factors in the financial success of Hollywood studios.
  • Legal issues and increased competition led to the decline of the studio system, paving the way for new models of filmmaking.


From the “Pre-Hollywood Era” to today's “Box Office Age”, Hollywood cinema has been deeply rooted in rich history since the late 1870s. Today, Hollywood continues to shape itself toward ever-changing creative forms driven by emerging artists, independent companies, and overseas competition. And yet, to understand the importance of these constant transformations—for better or for worse—you need to look back at the most important era of classic cinema, The “Golden Age” of Hollywood.


The Golden Age of Hollywood was roughly from the late 1920s to the late 1960s, influenced by the rise of talkies. This era gave birth to some of the most famous films of all time, such as The wind has taken it away (1939), The wizard of Oz (1939), Casablanca (1942), cinderella (1950), Vertigo (1958), and hundreds more! Full of glamour, stardom and riches, the Golden Age was a key point in the history of cinema. More than his creative contribution, this essential period was defined by his technological contributions, i the key business model that dominated Hollywood during this time was called the “studio system.”



The “Big Five” and the “Little Three” controlled every business in Hollywood

In accordance with BritannicaHollywood The studio system took place during the Golden Age, usually around the 1930s and 1945s. The studio system was a business tactic in which all aspects of film production, star talent, distribution and exhibition were dictated by the “Big Five” and “Little Three” studios. The Big Five consisted of Metro-Goldwyn-Mayer, Warner Bros., Paramount, Fox (20th Century-Fox after 1935), and RKO, and the Little Three consisted of Universal, Columbia, and United Artists. As stated in the book Edison and the rise of innovation written by Leonard DeGraafthese studies did not begin until the filmmakers fought the patent wars Thomas Edison's Motion Picture Patents Company (MPPC). Having theaters in the 10s, rich producers like it Louis B. Mayer (MGM), Jack Warner (Warner Bros.), Adolf Zukor (Paramount) and Darryl Zanuck (Fox) moved to California to start over.


Where today the film world applauds the small, independent films and independent studios were almost non-existent at the time. Under the studio system, films were all created in one place. The major studios released films like an assembly line, carefully overseeing every script and production detail. Films were produced as if they were made in a factory. Different departments were tasked with separate tasks to ensure that procedures were efficient and consistent. More important, the studios owned the production facilities and their own theater networks, known as “studio-owned theaters” or “first-run theaters.”

“Block Booking” packaged surefire hits with less desirable films

Clark Gable and Vivien Leigh hugging in Gone With the Wind
Image by Annamaria Ward


Each major studio had its own theaters, meaning that if a viewer went to a theater owned by Warner Bros., they could only see movies made by that company. As described in the book The Big Tomorrow: Hollywood and Politics the American Way for Larry May, studios approached theaters they didn't have with a different business method called “block booking.” To ensure a steady stream of revenue, the Big Five and the Little Three would sell their films in packages to the remaining theaters. The The bundles contained relatively one great and highly anticipated movie, while the others were average or less desirable. Independent theaters were practically forced to accept these studio offers since they also included a hit film, making it very difficult for independent companies to exhibit their pictures.


The study system also implemented gender specialization. At this time, the Golden Age was manipulated by the Hays Code (a set of dos and don'ts that prohibited films from showing profanity, nudity, graphic violence, and sexual assault), which influenced the creative decisions of filmmakers. That's what it meant major studios had to specialize in different visual styles to distinguish one from the other. For example, MGM, the richest and most prestigious, was acclaimed for its musicals, Warner Bros., the cheapest, was known for its working-class gangster films, and 20th Century-Fox, on a tight budget, stood out for its impressive special effects, for Britannica. This technique was a crucial part of a studio's reputation as it targeted a specific audience, but it also affected actors' careers.

The Star system ensured the financial success of the studies


With its many branches, the financial success of the Gilded Age studio system depended heavily on exclusivity contracts. Studios would sign staff responsible for creative development to long-term contracts, including actors, directors, writers and below-the-line talent, according to a book titled The Hollywood Studio System: A History for Douglas Gomery. Employees were not paid per film, instead everyone received a fixed salary. However, the ones who were most controlled by the studios were the stars of the big screen!

If an actor or actress signed with one of the big names, they would be recorded in what was called the “star system”. The Star system in Hollywood meant that the actors who signed these binding contracts were molded into an idealized personality that studies did for them. Changing their lives forever, they would be taken under the wing of the studio crew to transform into true celebrities. Famous stars like Audrey Hepburn, Cary Grant, Grace Kelly, Rock Hudsoni Judy Garland they are just some of the names that lived through this meticulous system.

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Neither plot nor visuals mattered much during this time; the popularity and success of a film was based on the big name cast attached to it. To increase the promotion, the the major studios used the romantic personas of their actors to draw audiences to theaters. It was around the time that the names of the main cast appeared in giant print on movie posters. The more famous the star, the more searched his name became. A great example of the star system is seen in one of the most legendary actresses of all time, Norma Jeane Mortenson, who was renamed. Marilyn Monroe.

The star system may have been financially prosperous, but it had a dark side. Under these closely managed contracts, Actors were expected to emulate their on-screen personalities off-screen! Studies put his life under a magnifying glass. Women were to be elegant and classy, ​​while men were to be dignified and masculine. For The Hollywood Studio system, studios went so far as to fabricate fake backstories and celebrity romances to whip up a public frenzy. Using the paparazzi to their advantage, gossip became an instant source of free publicity for certain films, and fans fell for the facade every time. They just wanted to worship their favorite stars on the big screen.


What broke the Hollywood Studio system?

​​​​​​​All things must come to an end and the studio system finally faded away. The system began to decline in the late 1940s and early 1950s due to various legal factors, including problems with the US government. In 1948, a lawsuit, United States v. Paramount Pictures, Inc., found the studio system illegal. under violation of the nation's antitrust laws.

Considered an unfair monopoly, the Big Five had to make crucial changes to their businesses, which involved giving up ownership of their movie theaters. The The lawsuit also banned actors from the star system and eliminated exclusivity contracts and established salary income. Back then, actors were paid per film, similar to how Hollywood works today. During this judicial conundrum, television was also a competitive medium and the studios saw a decline in ticket sales that they could not keep up with financially. Other challenges persisted, including rising film production costs, blacklisting of screenwriters, actors becoming “free agents,” low box office, and censorship.


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Remarkably, over 7,500 feature films were produced under the Hollywood studio system, for Britannica. Hollywood's new wave of filmmaking came into play in the late 1960s, when directors took a more powerful role in the studios. The the decline of the studio system led to greater independence for filmmakers and actorsas well as the emergence of new production and distribution models in the film industry.

Hollywood's “Golden Age” classics can be streamed on Tubi in the US

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