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In: Economics

The post-war era was rough on the movie business. What schemes and tools are the theatres...

The post-war era was rough on the movie business. What schemes and tools are the theatres using today? Are they effective?

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Expert Solution

The post-war era the film industry radically changed. President Franklin D. Roosevelt, General Dwight D. Eisenhower, actors, filmmakers, studio executives, and directors were aware that movies were important for boosting the troop’s morale overseas and Americans at home; and altered the content and style of the films made in Hollywood. From 1939 to 1946 the industry faced a boom years, however faced a long period of decline. The antitrust lawsuits were used to deprive studios of their theatres, and destroyed the careers of many screenwriters, actors, and directors by Senator McCarthy's blacklist of suspected Communists. Also the new television technology drew audiences away from the movies by giving convenient and comport at-home entertainment. However the court separated the theatre and producer - distributor companies and outlawed the fixing of admissions prices, block booking, unfair clearances and runs, and discriminatory purchasing and pricing arrangements. In America, today the anti-trust law took the modern form with the Sherman Act -1890 and Clayton Act -1914, with the roots in the turn-of-the-century and placed more weight on promoting the market efficiencies which aims to improve the consumer welfare. These are certainly effective in preserving the benefits of small companies


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