Summary: The Studio System
The studio system was a system that sort of streamlined the film production process. In order to reduce risk major studios created a system that controlled production and distribution of films. Studios implemented long-term contracts for all involved to have exclusivity with with studio under control of a central producer. Major Studios created an oligopoly that was mass producing and distributing feature films. Metro-Goldwyn-Mayer and four other major studios dominated film production and distribution. The studios created movies on studio owned lots by studio contracted employees and then distributed through studio owned theaters. Studios wanted to reduce the risk of losing money. Major studios kept majority control over film distribution