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The Studio System: Necessary In Business

261 Words2 Pages
The studio system was a system designed by the “major” studios to have total control of movie production, distribution, and exhibition. There were two groups of major studios, “The Big Five”: MGM, Paramount, Warner Bros., RKO and Fox and ‘The Little Three’: Universal, Colombia and United Artists. This strategy and block booking were the main reason why the major studio stayed in business. Since they owned all the pieces to make a movie, they also owned 75% of the movie theaters in the U.S.. This means they can control what the movie theaters played and since all of the major studios were block booking most of the theaters, all of the profit would go right back into the studios pockets. Along with already having a monopoly, the studio system
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