Universal Film Manufacturing

Universal Pictures (legally Universal City Studios LLC, also known as Universal Studios, or simply Universal; common metonym: Uni, and formerly named Universal Film Manufacturing Company and Universal-International Pictures Inc.) is an American film production and distribution company owned by Comcast through the NBCUniversal Film and Entertainment division of NBCUniversal.

Founded in 1912 by Carl Laemmle, Mark Dintenfass, Charles O. Baumann, Adam Kessel, Pat Powers, William Swanson, David Horsley, Robert H. Cochrane, and Jules Brulatour, Universal is the oldest surviving film studio in the United States; the world's fifth oldest after Gaumont, Pathé, Titanus, and Nordisk Film; and the oldest member of Hollywood's "Big Five" studios in terms of the overall film market. Its studios are located in Universal City, California, and its corporate offices are located in New York City. In 1962, the studio was acquired by MCA, which was re-launched as NBCUniversal in 2004.

Universal Pictures is a member of the Motion Picture Association (MPA), and was one of the "Little Three" majors during Hollywood's golden age.

History

Early years

Universal Studios was founded by Carl Laemmle, Mark Dintenfass, Charles O. Baumann, Adam Kessel, Pat Powers, William Swanson, David Horsley, Robert H. Cochrane and Jules Brulatour. One story has Laemmle watching a box office for hours, counting patrons, and calculating the day's takings. Within weeks of his Chicago trip, Laemmle gave up dry goods to buy the first several nickelodeons. For Laemmle and other such entrepreneurs, the creation in 1908 of the Edison-backed Motion Picture Patents Company (or the "Edison Trust") meant that exhibitors were expected to pay fees for Trust-produced films they showed. Based on the Latham Loop used in cameras and projectors, along with other patents, the Trust collected fees on all aspects of movie production and exhibition and attempted to enforce a monopoly on distribution.

Soon, Laemmle and other disgruntled nickelodeon owners decided to avoid paying Edison by producing their own pictures. In June 1909, Laemmle started the Yankee Film Company with his brothers-in-law Abe Stern and Julius Stern. That company quickly evolved into the Independent Moving Pictures Company (IMP), with studios in Fort Lee, New Jersey, where many early films in America's first motion picture industry were produced in the early 20th century. Laemmle broke with Edison's custom of refusing to give billing and screen credits to performers. By naming the movie stars, he attracted many of the leading players of the time, contributing to the creation of the star system. In 1910, he promoted Florence Lawrence, formerly known as "The Biograph Girl", and actor King Baggot, in what may be the first instance of a studio using stars in its marketing.

The Universal Film Manufacturing Company was incorporated in New York City on April 30, 1912. Laemmle, who emerged as president in July 1912, was the primary figure in the partnership with Dintenfass, Baumann, Kessel, Powers, Swanson, Horsley, and Brulatour. The company was established on June 8, 1912, formed in a merger of Independent Moving Pictures (IMP), the Powers Motion Picture Company, Rex Motion Picture Manufacturing Company, Champion Film Company, Nestor Film Company, and the New York Motion Picture Company. Eventually all would be bought out by Laemmle. The new Universal studio was a vertically integrated company, with movie production, distribution, and exhibition venues all linked in the same corporate entity, the central element of the Studio system era.

Following the westward trend of the industry, by the end of 1912, the company was focusing its production efforts in the Hollywood area.

''Universal Weekly'' and ''Moving Picture Weekly'' were the alternating names of Universal's internal magazine that began publication in this era; the magazine was intended to market Universal's films to exhibitors. Since much of Universal's early film output was destroyed in subsequent fires and nitrate degradation, the surviving issues of these magazines are a crucial source for film historians.

On March 15, 1915, Laemmle opened the world's largest motion picture production facility, Universal City Studios, on a 230-acre (0.9-km²) converted farm just over the Cahuenga Pass from Hollywood. Studio management became the third facet of Universal's operations, with the studio incorporated as a distinct subsidiary organization. Unlike other movie moguls, Laemmle opened his studio to tourists. Universal became the largest studio in Hollywood and remained so for a decade. However, it sought an audience mostly in small towns, producing mostly inexpensive melodramas, westerns and serials.

In 1916, Universal formed a three-tier branding system for their releases. Universal, unlike the top-tier studios, did not own any theaters to market its feature films. By branding their product, Universal gave theater owners and audiences a quick reference guide. Branding would help theater owners make judgments for films they were about to lease and help fans decide which movies they wanted to see. Universal released three different types of feature motion pictures:
* Red feather Photoplays – low-budget feature films
* Bluebird Photoplays – mainstream feature release and more ambitious productions
* Jewel – prestige motion pictures featuring high budgets using prominent actors

Directors included Jack Conway, John Ford, Rex Ingram, Robert Z. Leonard, George Marshall and Lois Weber, one of the few women directing films in Hollywood.

Despite Laemmle's role as an innovator, he was an extremely cautious studio chief. Unlike rivals Adolph Zukor, William Fox, and Marcus Loew, Laemmle chose not to develop a theater chain. He also financed all of his own films, refusing to take on debt. This policy nearly bankrupted the studio when actor-director Erich von Stroheim insisted on excessively lavish production values for his films ''Blind Husbands'' (1919) and ''Foolish Wives'' (1922), but Universal shrewdly gained a return on some of the expenditure by launching a sensational ad campaign that attracted moviegoers. Character actor Lon Chaney became a drawing card for Universal in the 1920s, appearing steadily in dramas. His two biggest hits for Universal were '' The Hunchback of Notre Dame'' (1923) and '' The Phantom of the Opera'' (1925). During this period Laemmle entrusted most of the production policy decisions to Irving Thalberg. Thalberg had been Laemmle's personal secretary, and Laemmle was impressed by his cogent observations of how efficiently the studio could be operated. Promoted to studio chief, Thalberg was giving Universal's product a touch of class, but MGM's head of production Louis B. Mayer lured Thalberg away from Universal with a promise of better pay. Without his guidance, Universal became a second-tier studio, and would remain so for several decades.

In 1926, Universal opened a production unit in Germany, Deutsche Universal-Film AG, under the direction of Joe Pasternak. This unit produced three to four films per year until 1936, migrating to Hungary and then Austria in the face of Hitler's increasing domination of central Europe. With the advent of sound, these productions were made in the German language or, occasionally, Hungarian or Polish. In the U.S., Universal Pictures did not distribute any of this subsidiary's films, but at least some of them were exhibited through other independent, foreign-language film distributors based in New York City without the benefit of English subtitles. Nazi persecution and a change in ownership for the parent Universal Pictures organization resulted in the dissolution of this subsidiary.

In the early years, Universal had a "clean picture" policy. However, by April 1927, Carl Laemmle considered this to be a mistake as "unclean pictures" from other studios were generating more profit while Universal was losing money.

Oswald the Lucky Rabbit

In early 1927, Universal had been negotiating deals with cartoon producers since they wanted to get back into producing them. On March 4, Charles Mintz signed a contract with Universal in the presence of its vice president, R. H. Cochrane. Mintz's company, Winkler Pictures, was to produce 26 "Oswald the Lucky Rabbit" cartoons for Universal. Walt Disney and Ub Iwerks created the character and the Walt Disney Studio provided the animation for the cartoons under Winkler's supervision.

The films enjoyed a successful theatrical run, and Mintz would sign a contract with Universal ensuring three more years of Oswald cartoons. However, after Mintz had unsuccessfully demanded that Disney accept a lower fee for producing the films, Mintz took most of Walt's animators to work at his own studio. Disney and Iwerks would create Mickey Mouse in secret while they finished the remaining Oswald films they were contractually obligated to finish. Universal subsequently severed its link to Mintz and formed its own in-house animation studio to produce Oswald cartoons headed by Walter Lantz.

In February 2006, NBCUniversal sold all the Disney-animated Oswald cartoons, along with the rights to the character himself, to The Walt Disney Company. In return, Disney released ABC sportscaster Al Michaels from his contract so he could work on NBC's recently acquired Sunday night NFL football package. Universal retained ownership of the remaining Oswald cartoons.

Keeping leadership of the studio in the family

In 1928, Laemmle, Sr. made his son, Carl, Jr. head of Universal Pictures as a 21st birthday present. Universal already had a reputation for nepotism—at one time, 70 of Carl, Sr.'s relatives were supposedly on the payroll. Many of them were nephews, resulting in Carl, Sr. being known around the studios as "Uncle Carl". Ogden Nash famously quipped in rhyme, "Uncle Carl Laemmle/Has a very large faemmle". Among these relatives was future Academy Award-winning director/producer William Wyler.

"Junior" Laemmle persuaded his father to bring Universal up to date. He bought and built theaters, converted the studio to sound production, and made several forays into high-quality production. His early efforts included the critically panned part-talkie version of Edna Ferber's novel '' Show Boat'' (1929), the lavish musical '' Broadway'' (1929) which included Technicolor sequences; and the first all-color musical feature (for Universal), ''King of Jazz'' (1930). The more serious ''All Quiet on the Western Front'' (1930) won its year's Best Picture Oscar.

Laemmle, Jr. created a niche for the studio, beginning a series of horror films which extended into the 1940s, affectionately dubbed Universal Horror. Among them are ''Dracula'' (1931), ''Frankenstein'' (1931), ''The Mummy'' (1932) and '' The Invisible Man'' (1933). Other Laemmle productions of this period include '' Imitation of Life'' (1934) and ''My Man Godfrey'' (1936).

The Laemmles lose control

Universal's forays into high-quality production spelled the end of the Laemmle era at the studio. Taking on the task of modernizing and upgrading a film conglomerate in the depths of the depression was risky, and for a time, Universal slipped into receivership. The theater chain was scrapped, but Carl, Jr. held fast to distribution, studio, and production operations.

The end for the Laemmles came with a lavish version of '' Show Boat'' (1936), a remake of its earlier 1929 part-talkie production, and produced as a high-quality, big-budget film rather than as a B-picture. The new film featured several stars from the Broadway stage version, which began production in late 1935, and unlike the 1929 film, was based on the Broadway musical rather than the novel. Carl, Jr.'s spending habits alarmed company stockholders. They would not allow production to start on ''Show Boat'' unless the Laemmles obtained a loan. Universal was forced to seek a $750,000 production loan from the Standard Capital Corporation, pledging the Laemmle family's controlling interest in Universal as collateral. It was the first time Universal had borrowed money for a production in its 26-year history. The production went $300,000 over budget; Standard called in the loan, cash-strapped Universal could not pay, and Standard foreclosed and seized control of the studio on April 2, 1936.

Although Universal's 1936 ''Show Boat'' (released a little over a month later) became a critical and financial success, it was not enough to save the Laemmles' involvement with the studio. They were unceremoniously removed from the company they had founded. Because the Laemmles personally oversaw production, ''Show Boat'' was released (despite the takeover) with Carl Laemmle and Carl Laemmle Jr.'s names on the credits and in the advertising campaign of the film. Standard Capital's J. Cheever Cowdin had taken over as president and chairman of the board of directors and instituted severe cuts in production budgets. Joining him were British entrepreneurs C.M. Woolf and J. Arthur Rank, who bought a significant stake in the studio. Gone were the big ambitions, and though Universal had a few big names under contract, those it had been cultivating, like William Wyler and Margaret Sullavan, left.

Meanwhile, producer Joe Pasternak, who had been successfully producing light musicals with young sopranos for Universal's German subsidiary, repeated his formula in the United States. Teenage singer Deanna Durbin starred in Pasternak's first American film, '' Three Smart Girls'' (1936). The film was a box-office hit and reputedly resolved the studio's financial problems. The success of the film led Universal to offer her a contract, which for the first five years of her career produced her most successful pictures.

When Pasternak stopped producing Durbin's pictures, and she outgrew her screen persona and pursued more dramatic roles, the studio signed 13-year-old Gloria Jean for her own series of Pasternak musicals from 1939; she went on to star with Bing Crosby, W. C. Fields, and Donald O'Connor. A popular Universal film of the late 1930s was '' Destry Rides Again'' (1939), starring James Stewart as Destry and Marlene Dietrich in her comeback role after leaving Paramount.

By the early 1940s, the company was concentrating on lower-budget productions that were the company's main staple: westerns, melodramas, serials and sequels to the studio's horror pictures, the latter now solely B pictures. The studio fostered many series: The Dead End Kids and Little Tough Guys action features and serials (1938–43); the comic adventures of infant Baby Sandy (1938–41); comedies with Hugh Herbert (1938–42) and The Ritz Brothers (1940–43); musicals with Robert Paige, Jane Frazee

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