Anymore, studios are just venture capital firms that specialize in motion picture financing and sales. Nowadays, generally (though there are exceptions), studios are involved directly only in the financing and distribution phases. Since then, the business has become one of corporate middlemen and shifting financial risk from one entity to another (unless we're talking about independent streamers with original content, like Netflix and Amazon Studios, which operate today very similarly to how studios operated prior to the Paramount decision). Then, in 1948, the Supreme Court applied anti-trust law to break up this vertical integration of the studios in United States v. Scripts were wholly developed and written in-house, the studio was directly responsible for its own physical operations (including production), and they even owned their own retail spaces - movie theatres (like the way Apple owns Apple Stores). Think on this: there are really four phases of filmmaking: (i) development, (ii) financing, (iii) production (which is further broken down into pre-production, principal photography, and post-production), and (iv) distribution and exhibition.īack in the Golden Age of Hollywood, as to any single film, all four phases were within the purview of the studio itself, as they were in the business of film production and distribution. If so, how does an independent production company go about making a major motion picture without the use of least a few of the studios resources? They can also provide funding, P&A, legal, insurance, & packaging / distribution as needed.
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