The Hollywood film system in the 1920s to the 1960s referred to many major production companies who dominated and controlled the marketing. This was also referred to as the Golden Age of Hollywood because of the hit films produced. As film became a more popular form of media several companies saw the opportunity to make money in producing films in large quantities. The film industry consisted of 8 major companies made up of two groups known as the Big Five (W.B, Paramount, MGM, RKO, 20th Century Fox) and the Little Three (Universal, United Artists and Columbia).
The Big Five manipulated the market by vertical integration and block booking which allowed controlled over movies made and distributed. They lay the foundation of Hollywood. These major studios used vertical integration to keep money in their company through production, exhibition and distribution. This meant the company never paid out to a competing company for distribution or exhibition The Big Five dominated the market the owned theater chains, which they block booked with no restrictions. Meaning one company could control the theatres in an entire area, preventing competition and allowing low quality films to gain a lot of audience and rent revenue. They also controlled the films in the sense of how it was written, who acted in these films, distribution and theaters. These companies owned many theaters in different parts of the country but they could show their films in different companies’ theaters so the film could be seen anywhere. Because of this if one company had a hit the others would profit on the people going in to see their movie theaters. These studios had control over the movies that these stars were in and were known to lend...