Vertical integration quickly became an important aspect of the Hollywood system. I chose this aspect because I am amazed at how only eight production companies controlled the entire American cinema. Currently in 2010, there is no oligopoly among Hollywood studios, and often independent production companies produce films that are critically acclaimed and have gone on to win Academy Awards.
With the method of vertical integration, the studios maximized their profits by controlling each individual aspect of production, such as production, distribution and exhibition. The studios owned large plots of land for the construction of intricate sets, controlled the terms for the films release date, and operated the largest cinemas in the country.
Vertical integration constantly affected the kinds of films the studios made because the studios held all control over the crew of the films. Essentially, stars were under contract for the studios and they were always working on projects. Directors would often make up to five films per year, whereas current directors on average will make one every three years. For example, during the year 1942, in addition to directing "Casablanca", Michael Curtiz directed "Yankee Doodle Dandy" and "Captains of the Clouds". This amazed me because the film "Casablanca" is regarded by AFI as the second best film in history. Essentially, it is a masterpiece. One would think that such a film would require countless years of work from the director; however, Curtiz made Casablanca in the same year as two other films. Throughout Curtiz's entire career he directed over 170 films, a truly unprecedented number.
http://www.fathom.com/course/10701053/session1.html
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