Vertical integration in studio system Essay -- Economics

Vertical integration in studio carcassThe term vertical integration refers to the structure of amarketplace, which is integrated (rather than segregated) at a human bodyof crucial levels. In the case of the motion picture industry, thestudio system established a market in which the studios owned fruit facilities, dispersion outlets, and battlegrounds. In otherwords, the studios controlled every level of the marketplace from thetop down, from production to exhibition.Vertical integration began in the 1910s and inspired the postwarconsolidation of the studio system as national distribution companies,such as prevalent merged with production companies, such as FamousPlayers and Lasky and subsequently began purchasing theater chains.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 booked oneanothers films in their theaters.Vertical int...