tion of America, the film industry took a high recovery path between 1970 and 1980, through the integration of the television and the film division of the MCA with new blockbuster films. This was to be reversed back to the studio system balance of power, after the deregulation of the media that swept through the 1990s, coupled with globalization and digital technologies (Schatz, n.d.). Between the 1920s and the 1940s, the film industry was controlled by the Big Eight Studios, which operated on a factory-based mode, and the studio control made the industry flourish through the depression and the World War II, such that the government had to tolerate the studio control.
However, by 1947-8, the studio control experienced one of its major blows that saw the revenues drop drastically. This is because, the Supreme Court ruled to prohibit the collusive trade practices that enabled the big studios to control the industry (Schatz, n.d.). This resulted to the change of the mode of operation of the film business in Hollywood, to a new business model that operates to date.
The ‘telefilm’ concept developed in the 1950s, with the rise of the profitable television production based on the West Coast films, which the studios started pursuing (Schatz, n.d.). Though initially the big studios such as the Warner Bros and the 20th Century Fox had initially resisted the ‘telefilm’ lure, they were eventually absorbed into it by the success of other studios, and by the 1960s, the TV series production had shifted from New York to Hollywood. Further, the 1960s were the years of increased film importation and international co-production, and during the same period, Hollywood ventured into regenerating its own art cinema (Schatz, n.d.).
However, the excess youth-marketed art cinema coupled with the flop of high budget film resulted in a high recession for the industry between 1969 and 1971. This led to the revolution of the industry through the introduction of the theatrical