Week 2: US v Paramount (1948)

Question 1

What type of case was this?

Answer 1

An antitrust case

Question 2

Two key ways that the studio system today is different from the studio system in the 30s and 40s

Answer 2

1. Finance
2. Distribution

Question 3

Vertical integration in the studio system

Answer 3

studios were responsible for finance, principle photography, post-production, distribution, and exhibition

Question 4

Describe studio’s relationship with theaters before this case

Answer 4

studios had franchising relationships with theaters where they employed block-booking

Question 5

block-booking

Answer 5

when studios wouldn’t sell individual films, but sets of films
*made it difficult for independent production companies to enter the market
*was bundling at the wholesale level - theaters had to buy all movies in order to get one

Question 6

How did block-booking help studios?

Answer 6

It helped stabilize risk by ensuring consistent demand for a range of product lines
*made sure their less popular productions were still sold

Question 7

What did this case decide?

Answer 7

Studios had to sell their theaters and stop block-booking
*studios could no longer have control over exhibition
*NOT an end to the studio system but the beginning of its downfall

Question 8

What was the effect of this court case?

Answer 8

studios could no longer consistently sell their B movies – production units had excess capacity – in order to reduce capacity, studios drastically cut costs by keeping less talented under contract