Sunday, 10 August 2014
RKO formed in response to the monopoly Western Electric's ERPI had over sound in films as well, and began to use sound in films through their own method known as Photophone . Paramount, who already acquired Balaban and Katz in 1926, would answer to the success of Warner Bros. and RKO, and buy a number of theaters in the late 1920s as well, before making their final purchase in 1929, through acquiring all the individual theaters belonging to the Cooperative Box Office, located in Detroit, and dominate the Detroit theaters.
However, filmmaking was still a business and motion picture companies made money by operating under the studio system. The major studios kept thousands of people on salary—actors, producers, directors, writers, stunt men, craftspersons and technicians. And they owned hundreds of theaters in cities and towns across America, theaters that showed their films and that were always in need of fresh material. In 1930, MPDDA President Will Hays also founded the Hays (Production) Code, which followed censorship guidelines and went into effect after government threats of censorship expanded by 1930. However the code was never enforced until 1934, after the new Catholic Church organization The Legion of Decency—appalled by Mae West's very successful sexual appearances in She Done Him Wrong and I'm No Angel —threatened a boycott of motion pictures if it did not go into effect , and those that didn't obtain a seal of approval from the Production Code Administration had to pay a $25,000 fine and could not profit in the theaters, as the MPDDA owned every theater in the country through the Big Five studios .
