Juan Monroy
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  1. Home
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  3. American Film Industry
  4. The Beginning of the End of the Studio System

The Beginning of the End of the Studio System

  • Fall of the Hollywood Studio System
    • Red Scare and Communist Infiltration in Hollywood
    • Anti-Trust Action and the Paramount Decision
    • New Competition from Foreign Films
    • The Rise of Television
  • Best Years of Hollywood’s Life
    • post-World War II
    • economically prosperous time for country
    • US took on role of world superpower
    • assisting other countries in rebuilding after World War II, such as the Marshall Plan for Europe
  • Box Office Peak
    • 1946
    • attendance peaked at 80 to 90 million a week
    • record of $1.5 billion box office
    • today, only 25 million a week go with box office at about $10 billion
  • Box Office Decline
    • attendance dropped to 47 million, 1957
    • 4000 theaters closed during those years
    • RKO ceased operations in 1957
  • Hollywood and the Red Scare
  • Early Investigations of Communist Infiltration
    • House Committee on Un-American Activities formed in 1937
    • investigating subversives
    • Martin Dees, Texas
    • Samuel Dickstein, New York
    • led to Senate investigations in 1941 and 1943
  • US Chamber of Commerce
    • publishes report on Communist Infiltration In The US in 1945
    • alleges Communists trying to control entertainment and information media
    • claimed that Communists already infiltrated Screen Writers Guild
    • Chamber of Commerce president, Eric Johnston, succeeds Will Hays as head of MPPDA, 1946
  • HUAC and Hollywood
    • aided by Motion Picture Alliance for Preservation of American Ideals
      • right-wing personnel from Hollywood
      • testified publicly against their colleagues
    • HUAC pressured Eric Johnson
      • to dismiss all Communists in Hollywood
      • but Johnson initially refused, challenged public to boycott
      • wanted Johnson and Hollywood to set up blacklist
  • Hollywood Testifies Before HUAC
    • Twenty-three friendly testified for a variety of reasons
    • Jack Warner: “had never seen a Communist and wouldn’t know if I saw one”
    • Louis B. Mayer vowing MGM would never hire a communist
    • anger directed against unfriendly witnesses so that industry could survive
  • “Unfriendly” Witnesses
    • J. Parnell Thomas
      • head of HUAC in September 1947
    • subpoenaed 43 witnesses
    • trying to prove that Writers Guild of America was dominated by communists
  • In “Contempt of Congress"
    • October 1947, Parnell called 19 unfriendly witnesses
    • Ten were asked “are you now or have you ever been a member of the Communist party?”
    • all refused to answer and charged with contempt of Congress and sent to jail
      • 2 served prison terms for 6 months
      • 8 served for a full year
  • Hollywood Ten
    • Robert Scott
    • Edward Dmytryk
    • Samuel Ornitz
    • Lester Cole
    • Herbert Biberman
    • Albert Maltz
    • Alvah Bessie
    • John Lawson
    • Ring Lardner, Jr.
    • Dalton Trumbo
  • Waldorf Peace Pact
    • December 3, 1947: issued the “Waldorf Statement”
    • agreement between Hollywood studio executives
    • release the Hollywood Ten from jail
    • institute the Hollywood Blacklist, persisting throughout the late 1950s
    • Hollywood played it safe
    • Hollywood abandoned risqué, violent, comic and fantastic films
  • Waldorf Statement
    • Members of the Association of Motion Picture Producers deplore the action of the 10 Hollywood men who have been cited for contempt by the House of Representatives. We do not desire to prejudge their legal rights, but their actions have been a disservice to their employers and have impaired their usefulness to the industry.
      We will forthwith discharge or suspend without compensation those in our employ, and we will not re-employ any of the 10 until such time as he is acquitted or has purged himself of contempt and declares under oath that he is not a Communist.
      On the broader issue of alleged subversive and disloyal elements in Hollywood, our members are likewise prepared to take positive action.
      We will not knowingly employ a Communist or a member of any party or group which advocates the overthrow of the government of the United States by force or by any illegal or unconstitutional methods.
      In pursuing this policy, we are not going to be swayed by hysteria or intimidation from any source. We are frank to recognize that such a policy involves danger and risks. There is the danger of hurting innocent people. There is the risk of creating an atmosphere of fear. Creative work at its best cannot be carried on in an atmosphere of fear. We will guard against this danger, this risk, this fear.
      To this end we will invite the Hollywood talent guilds to work with us to eliminate any subversives: to protect the innocent; and to safeguard free speech and a free screen wherever threatened.
      The absence of a national policy, established by Congress, with respect to the employment of Communists in private industry makes our task difficult. Ours is a nation of laws. We request Congress to enact legislation to assist American industry to rid itself of subversive, disloyal elements.
      Nothing subversive or un-American has appeared on the screen, nor can any number of Hollywood investigations obscure the patriotic services of the 30,000 loyal Americans employed in Hollywood who have given our government invaluable aid to war and peace."
  • Anti-Trust Action
  • US vs. Paramount Pictures
    • charged Big 5 plus Little 3 of violating anti-trust laws
    • conspired to independents out of film market
    • Trust investigations began under National Recovery Administration, 1933
    • Federal government sued Paramount, July 1938
    • charged that vertically integration was in violation of Sherman Anti-Trust Act (1890)
  • Consent Decree of 1940
    • studios had agreed to eliminate blind bidding
    • limit block-booking
    • curtail new theater acquisition
  • Supreme Court Decision
    • US v. Paramount, Inc.
    • May 1948 SCOTUS decision
    • Compelled studios to divest of movie theaters
    • RKO & Paramount first to comply
  • Guilty
    • declared Top 8 guilty of monopolistic practices in terms of first-run exhibition
      • block booking
      • blind bidding
      • price fixing
    • unfair runs/clearances
    • discriminatory pricing/purchasing agreements
    • Big 5 had to get rid of theater chains
    • Top 8 had to stop block booking
  • Immediate Effects of Paramount Decision
    • independent theaters had better selections
    • studios could now make bigger films since they had greater exhibition access
    • studios now had to concentrate on fewer but more expensive films
  • Changing US demography
    • Americans moved away from cities to suburbs
    • increased birthrate
    • rise in nuclear families
    • increase in college education through GI Bill
  • Suburbanization
    • away from downtown theaters
    • houses, automobiles, appliances, commodities (disposable income)
    • families became more selective about entertainment
    • initially they listened to radio over the movies
  • Box Office Decline
    • profits of film industry plunged 74% from 1947–57
    • people more selective about what films they saw
    • attendance halved to 47 million per week, 1957
    • 4000 theaters closed
  • Rise of Foreign Films
    • runaway production & national producers of national films
    • proliferation of foreign/art house movies
    • post-WWII boom of US films overseas
    • protectionist measures (frozen funds) internationalize US film industry
    • Burstyn v. Wilson (1952), also known as the Miracle decision
  • Rise of Television
  • Introduced at World’s Fair in 1939
    • RCA Project
    • Used radio waves to transmit pictures and sound over remote distances
    • How does it work?
    • RCA explains in The Story of Television (1939)
  • New dominant visual medium
    • by 1954 there were 32 million
    • by 1960 90% of homes had TV
  • Effect of TV on Media Industries
    • newspapers: decline in circulation
    • magazines: end of the general-interest magazine
    • radio: transforms to music jukebox
    • movies: ends the studio era
  • On the Town (1949)
    • War-themed movie
    • Mogul-Producer Arthur Freed
    • Director-Choreographer: Gene Kelly-Stanley Donen
    • Writers: Adolph Green-Betty Comden
    • Last Gasp of MGM
    • musicals were about a quarter of MGM’s output, 1946–1955

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