The document discusses the history and evolution of the movie industry from early technologies like the zoetrope and magic lantern to the development of narrative films and Hollywood studio system. It describes how the major studios established control over production, distribution, and exhibition in the 1920s. The introduction of sound and innovations by directors helped spark the Golden Age of Hollywood in the 1930s-40s. The system was transformed after WWII due to changing social trends, television, and government intervention, but the industry continued to adapt through home video, cable, and streaming.

1. Movies and the Impact
of Images
CHAPTER 7

2. Movies and the Impact of Images
Movies bring people together
They evoke and symbolize universal themes of human experience
They can help us understand and respond to major historical events
The encourage us to reexamine contemporary ideas as the world evolves, particularly in relation
to race, class, spirituality, gender, and sexuality

3. Early Technology and
the Evolution of Movies

4. The Development of Film
Leonardo da Vinci theorized about creating a device that would reproduce reality
In the 17th century, the Magic Lantern projected images painted on glass plates using an oil lamp
as a light source
The thaumatrope—invented in 1824—was a two-sided card with different images on each side
that appeared to combine the images when twirled
The zoetrope—introduced in 1834—was a cylinder that rapidly twirled, which made the images
inside appear to move

5. Muybridge and Goodwin Make Pictures
Move
The development stage of movies began when inventors started manipulating photographs to
make them appear to move while simultaneously projecting them onto a screen
Eadweard Muybridge was the first to do both
One of his first projects was to determine if a racehorse actually lifts all four feet from the
ground at a full gallop

6. Muybridge and Goodwin Make Pictures
Move
In 1884, George Eastman (Founder of Eastman Kodak) developed the first film roll—a huge
improvement over the heavy metal and glass plates used to make individual photos
Louis Aime Augustin Le Prince invented the first motion picture camera using roll film
In 1889 Hannibal Goodwin improved Eastman’s roll film by using thin strips of transparent,
pliable material called celluloid, which could hold a coating of chemicals sensitive to light
Goodwin’s breakthrough enabled a strip of film to move through a camera and be photographed
in rapid succession, producing a series of pictures
Celluloid was transparent and was ideal for projection
The courts awarded Goodwin the patent for the invention, but Eastman’s company became the
major manufacturer of film stock for motion pictures after buying Goodwin’s patents

7. Edison and the Lumieres Create Motion
Pictures
As with the development of sound recording, Thomas Edison takes center stage in most
accounts of the invention of motion pictures
Edison originally wanted to merge sound and pictures, but there was no breakthrough, so he lost
interest
His assistant William Kennedy Dickson, combined Edison’s lightbulb, Goodwin’s celluloid, and Le
Prince’s camera to create an early movie camera, the kinetograph, and its viewing system, the
kinetoscope

8. Edison and the Lumieres Create Motion
Pictures
In France, brothers Louis and August Lumiere developed the cinematograph, a combined
camera, film developer, and projection system
The projection system was particularly important, as it allowed more than one person at a time
to see the moving images on a large screen
Edison then patented several inventions, including a new large-screen system called the
vitascope, which enabled longer strips of film to be projected, which hinted at movies’ potential
as a mass medium
Edison’s first public showing featured waves rolling onto a beach; some members of the
audience were so taken with the realism that they stepped back to avoid getting their feet wet

9. The Introduction of Narrative
Narrative films: Movies that tell stories
Audiences quickly tired of static films of waves breaking or vaudeville acts recorded on immobile
cameras
To become a mass medium, the early silent films had to offer what books achieved: the
suspension of disbelief. They had to create narrative worlds that engaged an audience’s
imagination
Georges Melies may have been the first director to realize that a movie was not simply a means
of recording reality, but that it could be artificially planned and controlled like a play
Edwin S. Porter mastered the technique of editing diverse shots together to tell a coherent story
Porter shot narrative scenes out of order and reassembled them to make a story

10. The Arrival of Nickelodeons
Nickelodeons: A form of movie theater whose name combines the admission price with the
Greek word for “theater”
They were usually small storefronts, featured a piano inside to include music, and sometimes
had live sound effects
Because films were silent (no language), nickelodeons flourished during the great European
immigration at the turn of the 20th century
These theaters filled a need for many newly arrived people struggling to learn English and
seeking an inexpensive escape from the hard life of the city
In 1910, the craze peaked, and entrepreneurs began to seek more affluent spectators, attracting
them with larger and more lavish theaters

11. The Rise of the
Hollywood Studio
System

12. The Rise of the Hollywood Studio System
Thomas Edison formed the Motion Picture Patents Company, known as the Trust
Some independent producers refused to bow to the Trust’s terms
Most film production took place in New York and New Jersey, but these independent producers
started to branch out and ended up in southern California (Hollywood)
Ironically, the people starting Hollywood in order to break free from the Trust developed other
tactics for controlling the industry
Adolph Zukor (eventually Paramount Pictures) and William Fox (later Twentieth Century Fox)
aimed at dominating the movie business at all three levels—production, exhibition, and
distribution

13. Production
In the early days of film, producers and distributors had not yet recognized that fans would not
only seek particular stories, but also particular actors
Zukor hired a number of popular actors and formed the Famous Players Company in 1912
Mary Pickford was “America’s Sweetheart,” she portrayed spunky and innocent heroines
She had no theater background, and was better suited to the more subtle new medium
People waited in line to see her movies and producers were forced to pay her higher salaries

14. Production
Pickford was the key figure in elevating the financial status and professional role of film actors
In 1910 she made about $100 a week, by 1914 she earned $1,000 a week, and by 1917 she
received a weekly salary of $15,000
In 1919 she broke from Zukor to form her own company, United Artists, bringing with her
Douglas Fairbanks, Charlie Chaplin, and D.W. Griffith

15. Production
By the 1920s, the studio system firmly controlled creative talent in the industry
Actors, directors, or other crew who weren’t under studio contract probably weren’t working at
all
Producers were appointed to handle hiring, logistics, and finances so that directors and creative
people could supervise more than one picture at a time
The system was so efficient that each major studio was producing a feature film every week
Pooling talent, rather than patents, was a more ingenious approach for movie studios aiming to
dominate film production

16. Distribution
Block booking: To gain access to popular films with big stars like Mary Pickford, exhibitors had to
agree to rent new or marginal films with no stars
Zukor would pressure theaters into taking 100 films they didn’t want in order to get the 3 films they
did want
This type of contract enabled new studios to test-market new stars without taking much financial risk
This practice was eventually outlawed
Another distribution strategy focused on marketing American films in Europe
WWI completely destroyed Europe’s film industry, and American studios stepped in and provided
films to European countries
This marked a turning point where the U.S. became dominant in the film production industry
Even today, the U.S. (Hollywood) maintains its role as the foremost leader in production

17. Exhibition
If theaters wanted to ensure that they had films to show their patrons, they had to purchase a
license from the Trust and pay whatever price it asked
Eventually, the flow of films from independents in Hollywood and foreign films enabled theater
owners to resist the Trust’s scheme
Zukor and Paramount started buying up theaters, solidifying its ability to show the movies it
produced
The studios realized that they could control 85-95 percent of income if they only operated first-
run theaters, where movies premiered
They built movie palaces, which were large, full-time, single-screen theaters that provided a
more hospitable movie-going experience
These theaters were built near urban mass transit stations, an idea that lingers today…..

18. Exhibition
By the late 1920s, the major studios had clearly established vertical integration in the industry
The business of movies was now complex and expensive, and many small competitive firms
were now dominated by a few powerful studios
The Big Five owned theaters—Paramount, MGM, Warner Brothers, 20th Century Fox, and RKO
The Little Three did not own theaters—Columbia, Universal, and United Artists

19. The Studio System’s
Golden Age

20. The Studio System’s Golden Age
Many consider Hollywood’s Golden Age as beginning in 1915 with innovations in feature-length
narrative film in the silent era
The Golden Age peaked with the introduction of sound and the development of the classic
Hollywood style
It ended with the transformation of the Hollywood studio system after WWII

21. Hollywood Narrative and the Silent Era
D.W. Griffith was the single most important director in Hollywood’s early days
He refined many narrative techniques and used them in a single movie, The Birth of a Nation
“Despite the cringe-inducing racism of this pioneering and controversial film, The Birth of a
Nation was the first feature-length film (more than an hour long) produced in America”
Although it was about the KKK and caused many protests and riots, the movie triggered
Hollywood’s fascination with narrative films—it was the first blockbuster
Feature films became the standard through out the 1920s and introduced many of the film
genres we continue to see produced today

22. The Introduction of Sound
The Jazz Singer (1927) was the first film which had sound—although only 354 words and some
musical numbers. It starred Al Jolson, who performed in black face
The breakthrough in sound was in 1928 with The Singing Fool, which made $5 million and
proved that sound was here to stay in movies
Around this time, sound was also being used with newsreels, and the first film footage captured
with sound was the takeoff and return of Charles Lindbergh

23. The Development of Hollywood Style
Hollywood dictated not only the business but also the style of most moviemaking worldwide
Three things contribute to the Hollywood Style:
1. The Narrative
2. The Genre
3. The Author (Director)

24. Hollywood Narratives
There are two basic components to a narrative: the story (what happens to whom) and the
discourse (how the story is told)
Movies feature recognizable character types (protagonist, antagonist, romantic interest,
sidekick); a clear beginning, middle, and end; and a plot propelled by the main character
experiencing and resolving a conflict by the end of the movie
Within Hollywood’s classic narratives, filmgoers find an amazing array of intriguing cultural
variations
The combination of convention and invention (CGI, 3D) provides a powerful economic package
that satisfies most audiences’ appetites for the combination of the familiar and the distinctive

25. Hollywood Genres
Genre: A category in which conventions regarding similar characters, scenes, structures, and
themes recur in combination (p.244)
By making films that fall into popular genres, the movie industry provides familiar models that
can be imitated
It is much easier for a studio to promote a film that already fits into a pre-existing category with
which viewers are familiar

26. Hollywood “Authors”
In commercial filmmaking, the director serves as the main author of a film
Successful directors develop a particular cinematic style or interest in specific topics that
separates them from other directors
Film revenues were declining in the late 1960s and early 1970s, but two directors and their
major hit films changed the industry by tapping into the nostalgia that movie audiences were
hungry for

27. Hollywood “Authors”
The success of Hopper and Lucas opened the door for other directors who started an era where
directors had the kind of economic clout and celebrity standing that belonged to movie stars:
Francis Ford Coppola, William Friedkin, Steven Speilberg, Martin Scorsese, Brian DePalma, and
George Lucas
Women and ethnic minorities have struggled to become directors in Hollywood
Kathryn Bigelow and Sofia Coppola are two of the more successful female directors
African American directors like Lee Daniels and Tyler Perry have begun to have success in
Hollywood

28. Outside the Hollywood System
Since the rise of the studio system, Hollywood has focused on feature-length movies that
command popular attention and earn the most money
However, the movie industry has a long tradition of films made outside the Hollywood studio
system

29. Global Cinema
In many countries, American films capture up to 90 percent of the market
Foreign films make up only about 2 percent of the movies seen in the U.S.
In the 1950s through 1970s, the rise of art house theaters saw the rebirth of interest in foreign-
language films
Catering to academic audiences, art houses made a statement against Hollywood commercialism as
they sought to show alternative movies
As the home video market grew in the 1970s, theaters stopped showing foreign films in exchange for
American blockbusters that would make the most profit
Services like Netflix have given access to more foreign films, but these films are still losing ground
Today, the most production outside the U.S. occurs in India (Bollywood), which produces romances
and adventure-musicals in a very specific style

30. The Documentary Tradition
Early filmmakers produced newsreels and travelogues, which recorded daily life in various
communities around the world
Documentary was established by Robert Flaherty’s Nanook of the North (1922) and Moana
(1925). Documentary was described as “the creative treatment of actuality,” or a genre that
interprets reality by recording real people and settings
Perhaps the major contribution of documentaries has been their willingness to tackle
controversial or unpopular subject matter

31. The Rise of Independent Films
Independent filmmakers often operate on a shoestring budget and show their movies in campus
auditoriums and small film festivals
The rise of independent film festivals in the 1990s helped Hollywood rediscover low-cost
independent films
Festivals are often a place to discover not only new movies, but new talent
By 2010, the independent film business as a feeder system for major studios was declining due
to the poor economy and studios’ waning interest in smaller specialty films
Producers of independent films are increasingly looking to digital distribution

32. The Transformation of
the Studio System

33. The Transformation of the Studio System
After years of thriving, the Hollywood movie industry began to falter after WWII
Critics and observers began talking about the death of Hollywood, claiming that the Golden Age
was over
The movie industry adapted and thrived, just as it continues to do today

34. The Hollywood Ten
In 1947 during the beginning of the Cold War, conservative members of Congress began
investigating Hollywood for alleged subversive and communist ties
The House Un-American Activities Committee (HUAC) led aggressive witch-hunts, resulting in the
Hollywood Ten hearings and trial
During the investigations, HUAC coerced prominent people from the film industry to declare their
patriotism and give up the names of colleagues suspected of having communist tendencies
Eventually, HUAC subpoenaed ten unwilling witnesses (nine screenwriters and one director) who
were questioned about their memberships in various organizations
They refused to discuss their memberships or identify communist sympathizers. Charged with
contempt, they were sent to prison
Upon release from jail, they found themselves blacklisted by the major studios

35. The Paramount Decision
After the HUAC investigations, the government also increased its scrutiny of the movie industry’s
aggressive business practices
The Paramount Decision: Studios were forced to gradually divest themselves of their theaters,
ending vertical integration
Although the government had hoped to increase competition, the Paramount case never really
changed the oligopoly structure of the Hollywood film industry because it failed to challenge the
industry’s control over distribution

36. Moving to the Suburbs
In the late 1940s, the transformation from a wartime economy and a surge in consumer
production had a significant impact on moviegoing
Americans started buying household goods and new cars with their discretionary income
They also started buying new houses in the suburbs, far from downtown movie theaters
Homeownership doubled between 1945 and 1950, and couples began marrying and having
children much younger
The combination of social and economic changes meant there were significantly fewer people at
the movies
This was compounded by TV—giving people even less reason to go to the theater

37. Hollywood Adapts to Home
Entertainment
The introduction of cable TV and videocassette in the 1970s transformed movies
The movie industry initially tried to stop VCRs from being legal, but quickly jumped on the
bandwagon and began selling home videos
DVDs arrived in 1997 and people began new collections of home movies
Blu-Ray arrived in 2008 to present HD home videos
Online distribution caused Blockbuster and other video rental services to go out of business,
although low-end rentals (Redbox) are still an option
The future of the video business is online, as more and more people have high quality screens
and sound systems in their homes

38. The Economics of the
Movie Business

39. The Economics of the Movie Business
Despite the development of network and cable TV, video-on-demand, DVDs, internet
downloads, and streaming, the movie business has continued to thrive
Since 1963, Americans have purchased about 1 billion movie tickets each year
Global box-office revenues for Hollywood movies have grown, particularly in China, Russia, and
Mexico
In order to flourish, the movie industry has had to continually revamp its production,
distribution, and exhibition systems and consolidate its ownership

40. Production, Distribution, and Exhibition
Today
In the 1970s, attendance by young moviegoers at new suburban multiplex theaters made
megahits of several movies
During this period, Jaws and Star Wars became the first movies to gross more than $100 million
at the U.S. box office in a single year
In trying to copy the success of these movies, the studios set in place economic strategies for
future decades

41. Making Money on Movies Today
With 80 to 90 percent of newly released movies failing to make money at the domestic box
office, studios need a couple of major hits each year to offset losses on other films
The potential losses are great: A major studio film, on average, now costs about $66 million to
produce and $37 million for domestic marketing, advertising, and print costs
With climbing film costs, creating revenue from a movie is a formidable task. Studios make
money on movies from six major sources

42. Making Money on Movies Today
1. The studios get a portion of the theater box-office revenue (about 40 percent). 3D movies
get higher ticket prices
2. The studios also get money from the home-video market, about 3-4 months after release.
This includes video-on-demand, streaming, and DVD and Blu-Ray sales and rentals. Many
times, rental and streaming services have to wait at least a month after the movie has gone
on sale
3. Next, the studios make money on “windows” of release for a film: premium cable, then
network and basic cable showings, and finally the syndicated TV market

43. Making Money on Movies Today
4. Studios can earn revenue from distributing films in foreign markets. International box-office
gross revenues (about $25 billion) are more than double the U.S. and Canadian box-office
receipts, and continue to climb annually
5. Studios make money by distributing the work of independent filmmakers and producers,
who hire studios to gain wider circulation. Independents pay the studios between 30-50
percent of the money they make from movies
6. Finally, studios earn revenue from merchandise licensing and product placement in movies.
Product placements add revenue, but also lend an element of authenticity to the staging

44. Theater Chains Consolidate Exhibition
Film exhibition is controlled by a handful of theater chains
The leading five companies operate more than 50 percent of U.S. screens—Regal Cinemas, AMC
Entertainment, Cinemark USA, Carmike Cinemas, and Cineplex Entertainment
Now, megaplexes are designed to have lots of screens, luxury seating and stadium seating,
digital sound and projection, and snacks and food

45. The Major Studio Players
The current Hollywood commercial film business is ruled primarily by six companies—Warner
Brothers, Paramount, Twentieth Century Fox, Universal, Columbia Pictures, and Disney
These “Big Six” account for about 77 percent of the revenue generated by commercial films
Synergy: The promotion and sale of a product throughout the various subsidiaries of media
conglomerates (all of the Big Six except Disney are owned by conglomerates). This includes
clothes, toys, music, “making of” TV specials, or other merchandise
Disney has been particularly successful with youth-targeted movies, and the marketing of toys,
TV specials, fast-food tie-ins, and theme-park attractions
Some of the largest media mergers have been in the film industry—for example, Disney bought
Lucasfilm in 2012, gaining control of the Indiana Jones and Star Wars franchises, plus Industrial
Light and Magic

46. Convergence: Movies Adjust to the
Digital Turn
The biggest challenge the movie industry faces today is the internet
However, the movie industry has also embraced the internet as a method of distribution
In 2012, movie fans accessed more movies through digital online media than physical copies—
like DVD and Blu-Ray
The digital turn creates two long-term paths for Hollywood:
1. Studios and theaters will lean even more heavily toward making and showing big-budget
blockbuster film franchises that people will want to watch on the big screen
2. Inexpensive digital distribution of lower-budget documentaries and independent films,
which probably wouldn’t get wide release anyway but could find an audience who watch
from home

47. Alternative Voices
The digital revolution in movie production is the most recent opportunity to wrest some power
away from the Hollywood studios
Digital video is a shift away from celluloid film: it allows filmmakers to replace expensive and
bulky cameras with less expensive, lightweight digital cameras
Low-cost digital video opened up the creative process to countless new artists
Movies can be made for just a few thousand dollars (Paranormal Activity- $15,000)

48. Popular Movies and Democracy
At the cultural level, movies function as consensus narratives, a term that describes cultural
products that become popular and provide shared cultural experiences
These consensus narratives operate across different times and cultures
At the international level, countries continue to struggle with questions about the influence of
American films on local customs and cultures
With the rise of international media conglomerates, it has become more difficult to awaken
public debate over issues of movie industry diversity and America’s domination of the film
business
As critical consumers, those of us who enjoy movies and recognize their cultural significance
must raise these broader issues in public forums as well as in our personal conversations