Hollywood was first registered with Los Angeles County in 1887 but didn’t become a part of the city proper until 1910. On the East Coast, Thomas Edison was zealously defending his first motion picture camera patent. Edison’s actions led filmmakers to consider California, where the weather was better and the lawsuits would be easier to avoid.
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It all began in 1887 when Hollywood was registered as a small town before merging with Los Angeles in 1910. Filmmakers moved west to avoid Thomas Edison’s patent lawsuits, and the sunny California climate provided the perfect setting for year-round production. By the 1910s, studios like Paramount and Warner Bros. established themselves, and Hollywood's global dominance was cemented during its golden age from the 1930s to the 1950s.
The global box office reached $30B in 2024, down 11.5% from 2023's total and is estimated to be affected by that year's Hollywood strikes. Hollywood films dominated the top releases for 2024, with "Inside Out 2," "Deadpool & Wolverine," and "Moana 2" accounting for nearly $4B.
The inventor's patent on the motion picture camera included several stipulations that required independent movie studios to work with Edison's Motion Picture Patents Co., making the East Coast undesirable for aspiring filmmakers.
The original sign, which was only intended to be up for 18 months and erected around 1903, advertised a new housing development in the Hollywood Hills. In 1949, the Hollywood Chamber of Commerce shortened it to "Hollywood."
In 1918, the Great Influenza epidemic killed more than 675,000 Americans. Los Angeles was one of the first cities to shut down movie theaters, most of which were independently owned and couldn’t afford the revenue loss. The results were twofold: the quick response meant that Hollywood could bounce back faster than other film hubs, and it also contributed to the rise of vertical integration as studios stepped in to purchase the flailing theaters.
Hollywood films generate roughly $49B for the US economy each year. In California, the film industry provides more than 200,000 jobs. Industry employees were paid more than $42B in wages in 2022.
Hollywood in the early to mid-20th century was largely controlled by the "Big Five" studios: Paramount, Warner Bros., Fox, MGM, and RKO. The studios were vertically integrated, overseeing every aspect of film production, distribution, and exhibition. During this era, actors like Cary Grant and Judy Garland were under contract with specific studios—typically for seven years. Garland signed with MGM at age 13, which counted on them to draw audiences.
The "Big Five" studio system minted stars, but it also tightly controlled their personal lives. Homosexuality, in particular, was seen as a liability. One example is Rock Hudson, a major star in the 1950s and '60s, who was forced into an arranged marriage with his agent's secretary.
Movies changed forever in 1927, when Warner Bros. released "The Jazz Singer," the first feature film with integrated dialogue. Based on a Broadway musical, the movie starred Al Jolson as the son of a Jewish cantor who wants to be a popular singer.
1948's landmark United States v. Paramount Pictures found that the "Big Five" studios violated antitrust laws, effectively ending the reign of the vertically integrated system and the golden age of Hollywood.
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