After the financial crisis of 1929 there were but eight studios left and to help the studios reduce risk they created the studio system. It’s use of the contract system was one of it’s most powerful strategies. This allowed the studios to mitigate some of the risk of making films. Under the contract system everyone who worked for the studio was under contract to the studio. This allowed the workers to identify with the studios that they worked for, since all employees worked on all films. It was seen quite positively to be able to get a contract with a studio since it meant good pay and steady income, which was rare during this time period.

The studio system for directors had its pluses and minuses, they no longer had to raise funding or