The Studio System

MGM was one of the largest and most powerful studios during the golden age of Hollywood, contributing to the establishment of the studio system in the film industry.

The Big Five studios laid the foundation of the classical Hollywood system. These five major film studios, namely Metro-Goldwyn-Mayer, Warner Bros., Paramount, Fox, and RKO had complete control over film production, distribution, and exhibition, a business model referred to as "vertical integration." This gave independent studios, distributors, and exhibitors little chance to compete in the industry.

Most of these studios were led by powerful movie moguls who previously owned movie theaters in the 1910s. They later moved to Los Angeles to establish their studios. Among these moguls were Louis B. Mayer, who headed MGM; Jack Warner, who owned Warner Bros.; Adolph Zukor, who was at the helm of Paramount; and Darryl Zanuck, who ran Fox.

During the 1920s and 1930s, Hollywood became the epicenter of the movie industry, attracting filmmakers, actors, and other industry professionals from around the world. This was due to several factors, including the favorable climate, which allowed for year-round filming, and the availability of inexpensive land for studio construction and ample labor from a growing population.

As the industry grew and profits soared, larger studios acquired smaller ones and established themselves as dominant players. MGM, Paramount, and Warner Bros. Were among the most successful studios during this time. They were known for their "vertical integration" business model, which involved controlling all aspects of film production, from financing to distribution and exhibition. This model made it difficult for independent studios to compete in the industry. They were often excluded from key distribution channels and lacked the financial resources to mount large-scale productions.

One of the key technological advancements of this era was the transition from silent films to "talkies," which had synchronized sound. This development allowed for greater artistic expression in films and opened up new possibilities for storytelling. MGM was one of the studios at the forefront of this innovation, with films such as The Broadway Melody (1929) and The Jazz Singer (1927), which marked the first feature-length film with synchronized dialogue.

Another technological development that emerged during this time was using color in films. MGM was again a pioneer in this area with the release of its Technicolor musical The Wizard of Oz (1939), which remains a beloved classic today. Advances in special effects technology also allowed filmmakers to create more immersive and realistic worlds onscreen. MGM was among the studios that embraced these new possibilities, as seen in films such as King Kong (1933) and The Adventures of Robin Hood (1938).

Overall, the 1920s and 1930s were a period of tremendous growth and innovation in the movie industry. Hollywood emerged as the center of global filmmaking, and studios consolidated their power through vertical integration. MGM was a major player during this era, and its contributions to technological advancements in film continue to influence the industry today.

Footnotes

1. Christensen, Jarome. America’s Corporate Art : The Studio Authorship of Hollywood Motion Pictures. Stanford University Press, 2012. EBSCOhost, https://search.ebscohost.com/login.aspx?direct=true&db=e000xna&AN=713315&site=eds-live&authtype=ip,guest&custid=s8364774&groupid=main&profile=eds.