Talkie

Triumph of the "talkies"

In February 1927, an agreement was signed by five leading Hollywood movie companies: Famous Players–Lasky (soon to be part of Paramount), Metro-Goldwyn-Mayer, Universal, First National, and Cecil B. DeMille's small but prestigious Producers Distributing Corporation (PDC). The five studios agreed to collectively select just one provider for sound conversion, and then waited to see what sort of results the front-runners came up with. In May, Warner Bros. sold back its exclusivity rights to ERPI (along with the Fox-Case sublicense) and signed a new royalty contract similar to Fox's for use of Western Electric technology. Fox and Warners pressed forward with sound cinema, moving in different directions both technologically and commercially: Fox moved into newsreels and then scored dramas, while Warners concentrated on talking features. Meanwhile, ERPI sought to corner the market by signing up the five allied studios.