From 1920s to 1950s, the American film production was largely dominated by the Hollywood Film Companies. The Hollywood Film Companies were made up of five collective Companies such as Paramount, MGM, Warner Brothers, 20th Century Fox and RKO Radio (Gomery 2005, p. 2).
What is Meant by Hollywood Studio System?
The corporate of the five companies had their headquarters located in New York. Wall Street had merged its hold on the big film companies during the financial depression of 1920s and 1930s (Gomery 2005, p.2).
During that time, the cost of film production was higher than the profits gained by the companies. As the misery of financial crisis was set on stage, around 50% of cinema audiences shifted the loyalty away from the company (Debona 2010, p. 198). During this period of depression, flamboyant moguls came up to build a fantastic structure on the West Coast in Hollywood. The fantastic super structure later became known as the Studio System (Gomery 2005, p. 4).
It was dubbed Hollywood Studio System because the structure was situated in Hollywood (Debona 2010, 197). Most of the distributions and exhibitions of sound and pictures were being controlled here. Studio System was set to make films in the most professional way possible. The Hollywood Studio film system comprised of directors, supporting players, actors and writers, cameramen, art directors, special effects men, editors and composers (Gomery 2005, p.5).