Vertical integration in studio system Essay -- Economics

just desegregation in studio formationThe term vertical integration refers to the structure of amarketplace, which is integrated (rather than segregated) at a varietyof essential levels. In the case of the motion picture industry, thestudio system formal a market in which the studios ownedproduction facilities, distribution outlets, and flying fields. In otherwords, the studios controlled every level of the marketplace from thetop down, from production to exhibition. just integration began in the 1910s and inspired the postwarconsolidation of the studio system as national distribution companies,such as Paramount merge with production companies, such as FamousPlayers and Lasky and subsequently began purchasing theater handcuffs.All of the major studios in Hollywood (Paramount, MGM, Warner Bros.,etc) owned theater chains the minors, Universal, Columbia, and Unitedartists, did not. The minors, distributed their pictures, by specialarrangement, to theaters owned by the majors. The majors schedule oneanothers films in their theaters.Vertical int...