One of the main aspects of the studio system that developed in the late 1920s and early thirties was vertical integration - when a large conglomerate corporation owns key businesses in different but related markets so that they have the ability to handle many different parts of production "in house" and save money.
In vertical integration, the studios would own their own production crews, distribution systems and chains of movie theaters.
Because the production crews and directors were "part of the family" of the film company, distinct styles came to be associated with the different major film corporations.
Regulation increased in response to the mergers taking place, forcing the studios to part with some of their stakes in different part of the production process, particularly movie theaters.
A new wave of mergers started in the 80s and 90s when the industry's regulatory reigns were once again loosened. Because of this, the modern film system in some ways reflects the old, especially in terms of vertical integration.
Because of vertical integration, movie franchises from film appear on TV and vice versa, such as the creation of a Simpsons movie, Movies based on Marvel Comics, and a Lion King cartoon series airing on ABC Family (which shows yet another example of cross ownership and conglomeration because disney owns ABC)
The studio system developed an organization based on cross-ownership and conglomeration, namely in the form of vertical integration. This played a key role in the way movies were produced, what movies were produced, and how film studios are organized today.
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