Power Surge: Conglomerate Hollywood and the Studio System’s Last Hurrah

Between 1989 and 2004, the movie industry transformed itself in what Schatz (communication, Univ. of Texas, Austin; The Genius of the System) calls a third golden age of filmmaking. It’s a world not just of movies but of media giants, mergers and acquisitions, corporate conglomerates, vertical integration, and control of secondary markets like television, DVDs, and theme parks. Through the 1980s, talent agencies like William Morris, rather than studios, held significant influence as they brokered, packaged, and effectively produced many of Hollywood’s biggest films. But after the 1980s, power shifted back to the studios, which were being taken over by giants like Sony and Time Warner. Their goal was to create franchises—such as Harry Potter and Mission: Impossible—and produce blockbuster hits. (The first was Batman in 1989.) By 2004, five of the six major studios had also launched indie film divisions under their corporate umbrellas, ensuring the continued production of less costly yet unpredictable auteur films.