United Artists

United Artists Corporation (UA), currently doing business as United Artists Digital Studios, is an American digital production company. Founded in 1919 by D. W. Griffith, Charlie Chaplin, Mary Pickford, and Douglas Fairbanks, the studio was premised on allowing actors to control their own interests, rather than being dependent upon commercial studios. UA was repeatedly bought, sold, and restructured over the ensuing century. Metro-Goldwyn-Mayer acquired the studio in 1981 for a reported $350 million ($ billion today).

On September 22, 2014, MGM acquired a controlling interest in entertainment companies One Three Media and Lightworkers Media, then merged them to revive United Artists' television production unit as United Artists Media Group (UAMG). However, on December 14 of the following year, MGM wholly acquired UAMG and folded it into MGM Television.

United Artists was again revived in 2018 as United Artists Digital Studios. Mirror, the joint distribution venture between MGM and Annapurna Pictures, was subsequently rebranded as United Artists Releasing in early February 2019, in honor of its 100th anniversary.

History

Early years

In 1918, Charlie Chaplin could not get his parent company First National Pictures to increase his production budget despite being one of their top producers. Mary Pickford and Douglas Fairbanks had their own contracts, with First National and Famous Players-Lasky respectively, but these were due to run out with no clear offers forthcoming. Sydney Chaplin, brother and business manager for Charlie, deduced something was going wrong, and contacted Pickford and Fairbanks. Together they hired a private detective, who discovered a plan to merge all production companies and to lock in "exhibition companies" to a series of five-year contracts.

Chaplin, Pickford, Fairbanks, and D. W. Griffith incorporated United Artists as a joint venture company on February 5, 1919. Each held a 25 percent stake in the preferred shares and a 20 percent stake in the common shares of the joint venture, with the remaining 20 percent of common shares held by lawyer and advisor William Gibbs McAdoo. The idea for the venture originated with Fairbanks, Chaplin, Pickford and cowboy star William S. Hart a year earlier. Already Hollywood veterans, the four stars talked of forming their own company to better control their own work.

They were spurred on by established Hollywood producers and distributors who were tightening their control over actor salaries and creative decisions, a process that evolved into the studio system. With the addition of Griffith, planning began, but Hart bowed out before anything was formalized. When he heard about their scheme, Richard A. Rowland, head of Metro Pictures, apparently said, "The inmates are taking over the asylum." The four partners, with advice from McAdoo (son-in-law and former Treasury Secretary of then-President Woodrow Wilson), formed their distribution company. Hiram Abrams was its first managing director, and the company established its headquarters at 729 Seventh Avenue in New York City.

The original terms called for each star to produce five pictures a year. By the time the company was operational in 1921, feature films were becoming more expensive and polished, and running times had settled at around ninety minutes (eight reels). The original goal was thus abandoned.

UA's first production, ''His Majesty, the American'', written by and starring Fairbanks, was a success. Funding for movies was limited. Without selling stock to the public like other studios, all United had for finance was weekly prepayment installments from theater owners for upcoming movies. As a result, production was slow, and the company distributed an average of only five films a year in its first five years.

By 1924, Griffith had dropped out, and the company was facing a crisis. Veteran producer Joseph Schenck was hired as president. He had produced pictures for a decade, and brought commitments for films starring his wife, Norma Talmadge, his sister-in-law, Constance Talmadge, and his brother-in-law, Buster Keaton. Contracts were signed with independent producers, including Samuel Goldwyn, and Howard Hughes. In 1933, Schenck organized a new company with Darryl F. Zanuck, called Twentieth Century Pictures, which soon provided four pictures a year, forming half of UA's schedule.

Schenck formed a separate partnership with Pickford and Chaplin to buy and build theaters under the United Artists name. They began international operations, first in Canada, and then in Mexico. By the end of the 1930s, United Artists was represented in over 40 countries.

When he was denied an ownership share in 1935, Schenck resigned. He set up 20th Century Pictures' merger with Fox Film Corporation to form 20th Century Fox. Al Lichtman succeeded Schenck as company president. Other independent producers distributed through United Artists in the 1930s including Walt Disney Productions, Alexander Korda, David O. Selznick, and Walter Wanger. As the years passed, and the dynamics of the business changed, these "producing partners" drifted away. Samuel Goldwyn Productions and Disney went to RKO and Wanger to Universal Pictures.

In the late 1930s, UA turned a profit. Goldwyn was providing most of the output for distribution. He sued United several times for disputed compensation leading him to leave. MGM's 1939 hit ''Gone with the Wind'' was supposed to be a UA release except that Selznick wanted Clark Gable, who was under contract to MGM, to play Rhett Butler. Also that year, Fairbanks died.

UA became embroiled in lawsuits with Selznick over his distribution of some films through RKO. Selznick considered UA's operation sloppy, and left to start his own distribution arm.

In the 1940s, United Artists was losing money because of poorly received pictures. Cinema attendance continued to decline as television became more popular. The company sold its Mexican releasing division to Crédito Cinematográfico Mexicano, a local company.

Society of Independent Motion Picture Producers (1940s and 1950s)

In 1941, Pickford, Chaplin, Disney, Orson Welles, Goldwyn, Selznick, Alexander Korda, and Wanger—many of whom were members of United Artists—formed the Society of Independent Motion Picture Producers (SIMPP). Later members included Hunt Stromberg, William Cagney, Sol Lesser, and Hal Roach.

The Society aimed to advance the interests of independent producers in an industry controlled by the studio system. SIMPP fought to end ostensibly anti-competitive practices by the seven major film studios—Loew's (MGM), Columbia Pictures, Paramount Pictures, Universal Pictures, RKO Radio Pictures, 20th Century Fox, and Warner Bros./First National—that controlled the production, distribution, and exhibition of motion pictures.

In 1942, SIMPP filed an antitrust suit against Paramount's United Detroit Theatres. The complaint accused Paramount of conspiracy to control first-and subsequent-run theaters in Detroit. This was the first antitrust suit brought by producers against exhibitors that alleged monopoly and restraint of trade. In 1948, the U.S. Supreme Court Paramount Decision ordered the major Hollywood movie studios to sell their theater chains and to end certain anti-competitive practices. This court ruling ended the studio system.

By 1958, SIMPP achieved many of the goals that led to its creation, and the group ceased operations.

Krim and Benjamin

Needing a turnaround, Pickford and Chaplin hired Paul V. McNutt in 1950, a former governor of Indiana, as chairman and Frank L. McNamee as president. McNutt did not have the skill to solve UA's financial problems and the pair was replaced after only a few months.

On February 15, 1951, lawyers-turned-producers Arthur B. Krim (of Eagle-Lion Films), Robert Benjamin and Matty Fox approached Pickford and Chaplin with a wild idea: let them take over United Artists for ten years. If UA was profitable in one of the next three years, they would have the option to acquire half the company by the end of the ten years and take full control. Fox Film Corporation president Spyros Skouras extended United Artists a $3 million loan through Krim and Benjamin's efforts.

In taking over UA, Krim and Benjamin created the first studio without an actual "studio". Primarily acting as bankers, they offered money to independent producers. UA leased space at the Pickford/Fairbanks Studio but did not own a studio lot. Thus UA did not have the overhead, the maintenance, or the expensive production staff at other studios.

Among their first clients were Sam Spiegel and John Huston, whose Horizon Productions gave UA one major hit, '' The African Queen'' (1951) and a substantial success, ''Moulin Rouge'' (1952). As well as ''The African Queen'' UA also had success with '' High Noon'' in their first year, earning a profit of $313,000 compared to a loss of $871,000 the previous year. Others clients followed, among them Stanley Kramer, Otto Preminger, Hecht-Hill-Lancaster Productions, and actors newly freed from studio contracts and seeking to produce or direct their own films.

With the instability in the film industry due to theater divestment, the business was considered risky. In 1955, movie attendance reached its lowest level since 1923. Chaplin sold his 25 percent share during this crisis to Krim and Benjamin for $1.1 million, followed a year later by Pickford who sold her share for $3 million.

In the late 1950s, United Artists produced two modest films that became financial and critical successes for the company. The company made '' Marty'' which won 1955's Palme d'Or and best picture Oscar. ''12 Angry Men'' (1957) which according to Krim before home video, was being seen on TV 24 hours a day, 365 days a year some place in the world. By 1958, UA was making annual profits of $3 million a year.

Public company

United Artists went public in 1957 with a $17 million stock and debenture offering. The company was averaging 50 films a year. In 1958, UA acquired Ilya Lopert's Lopert Pictures Corporation, which released foreign films that attracted criticism or had censorship problems.

In 1957, UA created United Artists Records Corporation and United Artists Music Corporation after an unsuccessful attempt to buy a record company. In 1968, UA Records merged with Liberty Records, along with its many subsidiary labels such as Imperial Records and Dolton Records. In 1972, the group was consolidated into one entity as United Artists Records and in 1979, EMI acquired the division which included Blue Note Records.

In 1959, after failing to sell several pilots, United Artists offered its first ever television series, ''The Troubleshooters'', and later released its first sitcom, ''The Dennis O'Keefe Show''.

In the 1960s, mainstream studios fell into decline and some were acquired or diversified. UA prospered while winning 11 Academy Awards, including five for best picture, adding relationships with the Mirisch brothers, Billy Wilder, Joseph E. Levine and others. In 1961, United Artists released ''West Side Story'', which won a record ten Academy Awards (including Best Picture).

In 1960, UA purchased Ziv Television Programs. UA's television division was responsible for shows such as '' Gilligan's Island,'' '' The Fugitive'', '' Outer Limits'', and ''The Patty Duke Show''. The television unit had begun to build up a profitable rental library, including Associated Artists Productions, owners of Warner Bros. pre-1950WB retained a pair of features from 1949 that they merely distributed, and all short subjects released on or after September 1, 1948, in addition to all cartoons released in August 1948. features, shorts and cartoons and 231 ''Popeye

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