The Big Five and Little Three 1980
Within the Golden Age of Hollywood, a term existed to describe the structural makeup of Hollywood as composing of a "Big Five" and "Little Three". These Big Five consisted of Paramount Pictures, Warner Bros, RKO Pictures, Metro-Golden Mayer and 20th Century Fox while the Little Three were Universal Pictures, Columbia Pictures, and United Artists.
The B5L3 system would die in the 1960s with the death of RKO Pictures along with MGM's transition from a major film studio into a casino and live entertainment system. Two decades later and with New Hollywood the old structure would resurrect itself but with very significant differences. The only studios who remained structurally in the same tiers would be Paramount and United Arists. Both RKO and Warner Bros would be defunct, MGM and Fox would be downgraded to parts of the Little Three, Universal and Columbia would be upgraded to the Big Five, Disney would join the Big Five, and perhaps most importantly would be the creation of Lucasfilms and its movies which many see as the most revolutionary studio which caused the birth of New Hollywood.
Together these studios would collectively own a 91% of US Box office revenue and comprise a supermajority of global box office revenue. While Indie movies can be made into successful productions, none have taken the title of a Blockbuster with massive public adoration and critical approval usually going to one of the following eight studios.
THE BIG FIVE
Universal Pictures
Ownership:
-Music Corporation of America (Parent Company)
-Lew Wasserman (MCA CEO)
-Sidney Sheinberg (Universal CEO/MCA COO)
Business Strategy:
Focus of creation on medium to high budget films. Create a monopoly of A-list stars and filmmakers to draw in audiences through their names and make high quality films based off of their talent. Produce high quality television for NBC. Dominate foreign language imports. Beat whatever Lucasfilms is doing.
Creative Strategy:
Create films either centered around stars or fulfilling the muse of A-list filmmakers. Any subject is okay so long as it's profitable. Build large and extensive franchises. Reboot Universal Monsters.
Notable Assets:
-Universal Television
-Universal Studios Hollywood.
-Blue Sky Studios
Summary:
The oldest film studio in the United States and the fifth oldest in the world, Universal has in many ways become synonymous with Hollywood itself for all of its highs and lows. After having a strong line of horror films in the 30s and 40s, Universal came under the control of the Music Corporation of America in the 1950s and with it came newfound power thanks to MCA's lucrative talent agency which held in contract some of the biggest and most talented names in Hollywood. After MCA broke up in 1962 in an anti-trust act, Universal informally retained several of its contracts and continued to draw in lucrative profits. In the first half of the 1970's, Universal seemed to dominate with most of the highest grossing films coming from Universal, most especially Some Nights, Jaws and American Graffiti. Unfortunately for Universal, its maltreatment of George Lucas and his colleagues lead to the formation of Lucasfilms, and thus Universal's biggest rival.
Since the release of Star Wars, Universal has had a steady stream of profitable films but Napoleon has been their only true Blockbuster. As a rather conservative company clinging to Old Hollywood and having made enemies of most of the movie industry thanks to poor moves made in their arrogant height, Universal will have a long and difficult war to maintain their place at the top.
Public Perception:
While Universal is regarded as a studio that makes reliably good films, the studio has been plagued with a PR issue since the mid 70s. Most famous is their ongoing rivalry and feud with Lucasfilms, more specifically the blood feud from the O'Brian family, and due to their harsh treatment of American graffiti and active hostile business moves against Lucasfilms and other competitors, Universal is frequently seen as the villain of Hollywood, and after Star Wars has been termed by some as the "Evil Empire". Not helping Universal is the company being rather controversy prone, most especially with the baggage of its A-list stars, most recently being the ongoing trial of Eddie Fisher. Still, the public will see Universal movies, but brand loyalty is to the stars instead of the company.
Industry Perception:
A large portion of Hollywood tends to flock to or against Universal based off of their relationship with Lucasfilms and the O'Brian and Lucas families. Actors and filmmakers who are neutral in the rivalry try to land roles at Universal for the guarantee of high pay and lucrative legacy contracts. Old Hollywood tends to be largely in favor of Universal. Most movie studios are hostile or suspicious of Universal due to previous business practices.
Future Projects:
Rebooting the Universal Monsters franchise, continued release of the Napoleon series to counter Star Wars. Blank check support of Stanley Kubrick.
Lucasfilms
Ownership:
George Lucas, Founder and Co-owner (48%)
Bruce O'Brian, Founder and Co-owner (48%)
Marcia Lucas, Chief Editor (2%)
Michael Eisner, President (2%)
Business Strategy:
Create good films and shows, profit off of high quality art, build empire of large franchises with tie-in merchandise and print media. Quality before quantity in movie production.
Creative Strategy:
Make the best films and whatever they feel like.
Notable Assets:
-Industrial Lights & Magic
-Skywalker Sound
-THX
-Lucasfilms studio lot
-Dreamworks Animation
-Sunrise Studio
-Sunset Toys
Summary:
The child of Bruce O'Brian and George Lucas through one of the greatest brotherhoods and partnerships in film history, Lucasfilms was founded as a studio to be the home of artists and dreamers with filmmakers to pursue whatever they desired free from studio interference and corporate filmmaking. After two years of Japanese imports with Toho, Lucasfilms would make an explosive debut in 1976 with Oscar award winner Rocky and then on Christmas release what many consider to be the greatest film ever made, Star Wars. In just three years, Lucasfilms has come to be the second largest company in box office share and are generally seen the world over as the best in filmmaking.
Public Perception:
Lucasfilms has a large legion of casual and devoted fans due to the high quality of their films released. Lucasfilms is often hailed as being the best filmmakers in Hollywood and is noted for their revolutionary technical achievements which have quite literally advanced every aspect of filmmaking by years, if not decades. Bruce O'Brian is widely loved and adored by the American public for his fantastical life and humanitarian work. Across the globe, Lucasfilms is spoken in fear as a company that will start revolutions or keep them at bay.
Industry Perception:
Perhaps the most divisive film studio in Hollywood, Lucasfilms is either the best or worst thing to happen to the town depending upon who you ask. While all can respect the artistic and technical prowess of the company, many hold strong opinions against it based off of their perception of Bruce O'Brian or seeing Lucasfilms as a threat to their business. Anyone who holds at minimum a neutral opinion on Lucasfilms fights like hell to land a spot working at the company due to their heavily lauded positive work culture and high pay, along with the prestige of working with Lucasfilms. However, the nature of Lucasfilms as a family company (With the Lucas and O'Brians seen as family due to being the Godparents of each other's children) and the close relationships with their filmmakers, Lucasfilms has gained the reputaiton of being a "Frat Studio" due to its exclusivity in partnerships, thus making one have to rely on being friends with Bruce O'Brian or luck to work at Lucasfilms.
Future Projects:
TBD
Paramount Pictures
Ownership
-Gulf+Western (Parent Company)
-Charles Bludhorn (Owner)
-Barry Diller (CEO)
Business Strategy:
Accepting that it lacks the talent and infrastructure to be the best, Paramount in film focuses on quality entertainment that can be profitable and artistically strong. When films are critical and commercial successes, either create sequels or greenlight films with similar concepts. Paramount's main business focus is the success of Paramount Television Service as the Fourth Channel. In the age of Blockbusters, Paramount seeks to make Star Trek its flagship property and a peer to Star Wars.
Creative Strategy:
Focus on high concept productions for theatrical releases. Pursue science fiction projects. Create character-driven TV shows. Turn Star Trek into an expansive franchise.
Notable Assets:
-Paramount Television
-Paramount Home Video
-Paramount Television Service
Summary:
In the Golden Age, Paramount was well known for its trust status thanks to its theaters and its reputation as a trailblazer in television thanks to its creation and ownership of CBS. After Paramount was forced to part with its theaters and CBS was sold, Paramount became a shell of its glory days, but even as that shell it was still a king of Hollywood. After its lowest point, Paramount was sold to Gulf + Western and has since then become a jack of all trades studio, decent in everything, a master of none. Paramount's status as a member of the Big Five has largely been kept by its institutional power and its steady and reliable box office revenue. Under Barry Diller's leadership, Paramount has shifted focus to once again return to TV and hopefully become a dominant leader.
Public Perception:
The general public holds Paramount in mildly positive regard. With the anti-trust court battles a long distant memory, Paramount has no great controversies to darken its image and while often overshadowed by its peers, it has its share of dedicated fans, most especially Trekkies.
Industry Perception:
In a crazy and chaotic age, Paramount is looked towards with respect as a reliable producer of decent entertainment and decent employer to work for or with. In Hollywood politics, Paramount is regarded as a "Switzerland Studio" due to its cordial relations with all studios and lack of active grudges or hostilities.
Future Projects:
Star Trek: Wrath of Khan.
The Walt Disney Company
Ownership:
-Roy E. Disney, CEO (15%)
-Ron Miller, President (11%)
-Card Walker, Chairman (7%)
-Donn Tatum, President of Disney Parks (3%)
Business Strategy:
Supporting theme park operations and expansion. Form a monopoly over non-public children's and family entertainment. Create a long contract list of A-listers to associate with the Disney brand. Lead popular entertainment trends. Cultiavate a family customer base to last generations.
Creative Strategy:
Combine traditional Disney storytelling with new and bold ideas. Divide productions between family films and serious and mature storytelling. Explore animation in unconventional genres, take inspiration from Japanese anime. Create science fiction and horror.
Notable Assets:
-Disney Animation
-Disneyland
-Walt Disney World
-Buenavista Distribution
-Walt Disney Imagineering
-The Looney Tunes
Summary:
The company which had been associated with magic before Lucasfilms and its Magicians, Disney from the release of Snow White had held a cultural monopoly on family and children's entertainment versus other film companies. To the general public, Disney animation was animation and most American kids grew up with some form of love and attachment for Disney. In the life of Walt Disney, the company had been stuck only as a family friendly and cartoon company and never able to enter into mature live action storytelling. Walt Disney's final act would be the oversight of the EPCOT project which would never get off of design before his death. After Walt's death, the next decade would see the "Disney Dark Age" where the company was perceived by the public to lack a heart or soul without Walt's presence and thus produced mediocre live action and animation productions, the company mainly surviving off of its theme park revenue.
The future of Disney would change when Walt's nephew Roy Disney would bring the Looney Tunes home to Disney. Roy's masterstroke move would set off a chain of events which would see leadership shift from Card Walker to Roy as CEO, which is seen by many Disney fans as returning Disney to its proper place as a family company, and thus restoring the lost magic. 1978 would be Disney's comeback year with Black Hole, War of the Worlds and Halloween producing one billion in box office gross, a record year for Disney. Despite such bold risks that completely went against the family brand, Disney was lauded for its new direction and thus a new storytelling brand called "Dark Disney" was born. Going into the 80's, Disney seeks to make a triumphant return to television while doing its best to fuse the magic of Walt Disney with the stories of New Hollywood.
Public Perception:
Disney is frequently cited as the most beloved film studio by the general public. Disney generally benefits from generational fans where people who grew up with Disney will raise their kids with Disney and so on, thus associating Disney with general nostalgia and warmth. So beloved is Disney that their creative pursuits of dark and mature stories were received with widespread critical and audience support in comparison to Lucasfilms' occasional controversies. Disney is perceived to be second to Lucsafilms in terms of storytelling and many Disney fans eagerly look forward to their return to animation and adventures in live action.
Industry Perception:
Previously Disney was perceived as a kid's company with mediocre live action materials while it's stars were limited to a "Disney Club" which would be hard to break out into. After Black Hole and Halloween, filmmakers and actors are cautiously optimistic of the new Disney and have begun flocking to the company to pitch movies or audition for them to become part of the Disney family. Within the animation world, Disney is a very divisive topic due to its historically poor treatment of its animators. Animation veterans, most especially those from early Disney, view the animation studio as tyrannical and abusive. Thus Disney in animation is forced to rely heavily on the Warner Bros veterans and a large influx of new blood who fill the holes left by the Dreamworks defections.
Future Projects:
Creation of a Disney park in Europe and East Asia. Successful completion of EPCOT. Release The Fox and the Hound. Support John Carpenter productions. Create new films and shows for classic Disney and Looney Tunes characters. The creation of the Disney Channel.
Columbia Pictures
Ownership
-Alan Hirschfield (70%)
Business Strategy:
Promote DC comics as the flagship of Columbia. Develop all existing franchises. Revitalize old Columbia and Warner Bros brands. Break out into other branches of media to compete with peers.
Creative Strategy:
Development of a DC Cinematic Universe to act as the flagship movies of Columbia. Focus primarily on superhero films and use profits from said films to fund high concept and original films.
Notable Assets:
-DC Comics
-Warner Studio lot
Summary:
Originally a member of the Little Three, Columbia was for the longest time similar to Paramount's current position, a competent studio with some notable hits but no leadership or mastery of any particular field. Notably in Columbia's past production was its contract with many leading stars of the 50's and its previous partnership with Hanna-Barbera until 1967. In the 1960's, Columbia faced bankruptcy which lead to its acquisition by investment company Allen & Co. Columbia's fortunes would change greatly with CEO Alan Hirschfield's legendary gamble of the Warner Bros partition, buying out the Warner lot, DC comics and most Warner Bros intellectual properties on the back of massive loans. In the aftermath of the incredible success of Superman and DC Comics explosive market surge, Alan was able to buy out Columbia and turn it into a private company. Thus the future of Columbia is whatever Alan Hirschfield wishes.
Public Perception:
The superhero company. For better or worse, DC Comics and Columbia Pictures are two names that are synonyms of each other with Superman essentially being the mascot of Columbia. America loves Superman and Batman in spite of the two being very much opposites and want to see as many superhero films as possible.
Industry Perception:
After the Warner Partition, Hollywood had collectively come to accept Columbia as the next titan to fall but now after the success of Superman and Batman, many start to wonder if the Gambler was in actuality a prophet. Some more prudish filmmakers resent the superhero genre as a byproduct of the over commercialization of Hollywood. Outside of superhero films, Columbia is seen as an above average film studio.
Future Projects:
Expansion of the DC Cinematic Universe.
THE LITTLE THREE
United Artists
Ownership:
-Sony Corporation (Parent Company)
-Akio Morita (Sony Chairman)
-
Business Strategy:
UA has become infamous for their "Million Dollar Factory" where every annual production cycle, United Artists shall greenlight 100 films with a million dollar budget each. There shall be two films minimum released per week with more depending upon the release schedule of competitors. The strategy of UA can be surmised as "Quantity over quality" with UA's parent Sony deciding to beat competitors by taking up theater space and thus denying revenue. The Factory system is also seen as box office gambling where the potential for dozens of box office failures shall be acceptable if the remainder films are to generate profits that go above total expanding costs. In addition to the million dollar films are a slate of medium budget films totaling an additional $100 million in cost which shall be dedicated to United Artists' more ambitious projects or films which are designed to be blockbusters. Proactive networking is done to recruit New Hollywood artists to join the ranks of United Artists.
Creative Strategy:
Any film concept which has the potential to make money and is not obscene or pornographic is to be greenlight with maximum creative freedom to the filmmakers.
Notable Assets:
-United Artists Broadcasting
-UA Television
-United Artist Records
Summary:
Founded by A-listers of the silent film era to be a studio by the artists and for the artists, United Artists for the first half century of its existence had a reputation as the underdog of Hollywood, a scrappy David to the Goliath of the Big Five where those who felt persecuted or mistreated by the establishment would be free to make films as they wished. While never dominant commercially, UA was an artistic titan which made some of the highest quality films and was generally the friendliest in treatment to filmmakers and actors. This would change in 1968 with UA's acquisition by Transamerica which made the company more corporate in management and production. In the 1970's, UA would see two extremes of performances with films that were either critical and commercial success or flops. A toxic work culture developed and tensions were high between UA management and its parent company of Transamerica.
In 1977, United Artists would be purchased by the Sony Corporation, a Japanese conglomerate with subsidiaries in almost every economic sector, but with a specialization in consumer electronics and high-tech products. The motivation for the purchase was due to Toho's successful entry into the American box office and the rise of Blockbusters with Sony wishing to establish its stake in the industry with an established studio and thus further their global reach.
Public Perception:
UA is looked upon favorably by the American public as a studio that stands up for the "little guy" and struggling independent artists who could be silenced in the new Blockbuster era and reliance on established A-list production talent. To Cinephiles, UA is a culturally rich studio which delivers entertaining films that could not be found outside of Lucasfilms. In the political sphere, UA is frequently cited as an example of the growing dangers of the "Japanese Invasion" of culture and business leading to the common agreement that Japan is becoming an economic superpower and may someday own the American economy.
Industry Perception:
Similarly to Lucasfilms, United Artists has an extremely polarized reputation of either being incredibly loved or hated depending upon who is asked. After its purchase by Sony, United Artists has been revitalized as being the champion of the rookies, independent filmmakers and free spirits with those who have a dream and are willing to make a film for cheap heading to United Artists. Hollywood stars who are not aligned with any of the other members of the establishment usually flock to United Artists to make passion or vanity projects. Those who are trying to break out into Hollywood and create a career first flock to United Artists to serve as resume fodder before approaching the other studios.
Within the Big Five save for Lucasfilms, there is a sort of disdain held for United Artists as a Japanese puppet that throws money away producing "Fast Food Movies" along with bad blood and personal disdain for Sony's arrogance and disrespect towards their companies during their window shopping of Hollywood before the UA purchase. Members of Old Hollywood, most especially those who frequently took part in UA productions, look at modern UA as a bastardization of what the studio originally stood for.
Future Projects:
Continue with the Sony production formula. Introduce Japanese productions into the pool of UA productions to spread Japanese culture, capitalize on Toho's success, and compete with Lucasfilms on an equal level.
20th Century Fox
Ownership:
-News Corporation (Parent Company)
-Rupert Murdoch (Owner)
Business Strategy:
Create profitable franchises that will have the same economic and cultural power as Star Wars and James Bond. Expand into other areas of visual entertainment and media to dominate market ownership.
Creative Strategy:
-Pursue films in science fiction, horror and comedy.
Notable Assets:
-20th Century Fox Logo
Summary:
A once respectable member of the Big Five that dominated in comedies and epics, after anti-trust suits took away Fox's partial monopoly through its theater chains, the company went on a downward spiral thanks to incompetent leadership and consecutive box office bombs. The company looked to be on the verge of bankruptcy and was widely expected to undergo the same fate as Warner Bros until the successful release of Alien. After Alien, Fox would soon be bought by Australian Mogul Rupert Murdoch to add to his growing media empire. While Alien has given Fox a lifeline, the studio is still lacking in talent and make many wonder if 20th Century will live to see the 21st.
Public Perception:
The Fox Logo is iconic and many of the Greatest Generation still look on Fox fondly through its numerous Academy Award winners. Boomers and the general public mainly know Fox for Cleopatra, Planet of the Apes and Aliens.
Industry Perception:
The Liberal half of Hollywood looks at Fox in fear and suspicion for being a new asset for Conservatism and the Republican Party, especially with Ronald Reagan's rise as the frontrunner of the 1980 Presidential election. Filmmakers and actors not interested in politics see 20th Century Fox as a potential vehicle for a breakout production without resorting to the million dollar factory of UA. Big Five has adopted a wait and see approach on if Fox will rejoin their table.
Future Projects:
Alien 2 is in very early pre-production. Next Blockbuster focus is on a slasher film called Friday the 13th.
Metro-Golden Mayer
Ownership:
-Kirk Kerkorian (52%)
Business Strategy:
Support the Casinos and resorts. Make profitable films.
Creative Strategy:
Just follow the trends or make whatever sounds good.
Notable Assets:
-MGM Resorts International
-Monogram Distribution
Summary:
Once held in high regard as the kings of spectacle and motion picture art, MGM had reigned as the dominant Hollywood studio from its inception until the 1950s. However, an aging and ultra conservative leadership failed to adapt to the foundations of New Hollywood and starting in the 1960s, MGM suffered severe financial loss. MGM would be sold to Armenian-American tycoon Kirk Kerkorian in 1969 who would thereafter significantly downsize its studio production to a measly five films per year, eliminate MGM's distribution, sell its entire stock of historical props and hyperfocus the brand on Kerkorian's growing Las Vegas entertainment empire.
Following the rise of the Blockbusters and the spectacular performance of Star Wars, Kerkorian showed a revitalized interest in filmmaking now that he saw it could make him just as much, if not more money than his casino operations. In 1979, Kerkorian would announce MGM's return to competing as a member of the Hollywood establishment following his purchase of the bankrupt Allied Artists Pictures to serve as MGM's domestic distribution along with enhancing MGM's film library with Allied/Monogram's library stock. It has been said that Hollywood has chosen to collectively ignore or laugh at this announcement.
Public Perception:
The lion logo, Tom and Jerry, and their Las Vegas casinos and resorts. That is all that MGM is known to the American public, and that is even if they are known at all with an increasing number of Americans believing that MGM has been defunct for decades while most of the world has no idea who they are.
Industry Perception:
A joke, an old dinosaur, a delusional dementia patient, these among many more are terms used to refer to MGM which after Fox's recent turnaround with Alien and Kerkorian's decision to re-enter film has labeled the studio as the Sick Man of Hollywood. No one takes MGM seriously as anything more than a casino chain that also used to make movies. Members of Old Hollywood hold particular disdain for how Kerkorian has no respect for filmmaking and his sacrilegious usage of the brand for the past decade. Only filmmakers who want a medium sized budget and have been turned down by all other established studios go to MGM.
Future Projects:
The current plan for MGM is to make 10-15 films with low to medium sized budgets per year. MGM is mainly viewed as a business asset by Kerkorian who has little creative ambitions and simply wishes to use MGM as a means to expand his net worth.
NOTABLE JOINT VENTURES
United International Pictures
UIP is a Joint Venture comprising of Universal Studios, Paramount Pictures and recently Metro-Golden Mayer. UIP handles international distribution for all three major motion picture studios and serves as a method of schedule cooperation between the participating companies.
The Hollywood Entente
The Hollywood Entente or the DLC Studios is an informal alliance of Disney, Lucasfilms and Columbia formed in response to the hostile corporate actions of Universal and the entry of Sony into the American film market. The purpose of the Entente is to coordinate film release schedules to have as little direct competition, most especially in Blockbusters, and to defend their creative and business assets from hostile moves. The Entente has also seen partnerships in production, most especially ILM's work in multiple Columbia and Disney movies and Bruce O'Brians role as Batman.
Disney-Toho partnership
A distribution alliance between Disney and Toho for the distribution of Toho films in the American market after the collapse of Toho's relationship with Lucasfilms.
