chapter  6
12 Pages

The Movie Industry Gets a Czar: 1921-1934

Industry leaders had been protected as they had gained control over local theaters through practices such as "block booking," wherein theater owners had to take a studio's entire production, sight unseen, whether they wanted it or not. Block-booking agreements forced on local theater owners under threat of being run out of business were highly anticompetitive, in that they gave certain studios protected monopolies within particular cities or parts of cities. Leading producers decided they could maintain their local monopolies by following public relations recommendations and hiring a front for their operation.3