The first commercial exhibition of film took place on April 14, 1894 at the first Kinetoscope parlor ever built. However, it was clear that Edison originally intended to create asound film system, which would not gain worldwide recognition until the release of The Jazz Singer in 1927. In 1896 it became clear that more money was to be made by showing motion picture films with a projector to a large audience than exhibiting them in Edison's Kinetoscope peep-show machines. The Edison company took up a projector developed by Armat and Jenkins, the “Phantoscope”, which was renamed the Vitascope, and it joined various projecting machines made by other people to show the 480 mm. width films being made by the Edison company and others in France and the UK.
However, the most successful motion picture company in the United States, with the largest production until 1900, was the American Mutoscope company. This was initially set up to exploit peep-show type movies using designs made by W.K.L. Dickson after he left the Edison company in 1895. His equipment used 70 mm. wide film, and each frame was printed separately onto paper sheets for insertion into their viewing machine, called the Mutoscope. The image sheets stood out from the periphery of a rotating drum, and flipped into view in succession. Besides the Mutoscope, they also made a projector called the Biograph, which could project a continuous positive film print made from the same negatives.
There were numerous other smaller producers in the United States, and some of them established a long-term presence in the new century. American Vitagraph, one of these minor producers, built studios in Brooklyn, and expanded its operations in 1905. From 1896 there was continuous litigation in the United States over the patents covering the basic mechanisms that made motion pictures possible.
In France, the Lumière company sent cameramen all round the world from 1896 onwards to shoot films, which were exhibited locally by the cameramen, and then sent back to the company factory in Lyon to make prints for sale to whoever wanted them. There were nearly a thousand of these films made up to 1901, nearly all of them actualities.
By 1898 Georges Méliès was the largest producer of fiction films in France, and from this point onwards his output was almost entirely films featuring trick effects, which were very successful in all markets. The special popularity of his longer films, which were several minutes long from 1899 onwards (while most other films were still only a minute long), led other makers to start producing longer films.
From 1900 Charles Pathé began film production under the Pathé-Frères brand, with Ferdinand Zecca hired to actually make the films. By 1905, Pathé was the largest film company in the world, a position it retained until World War I. Léon Gaumont began film production in 1896, with his production supervised by Alice Guy.
In the UK, Robert W. Paul, James Williamson and G.A. Smith and the other lesser producers were joined by Cecil Hepworth in 1899, and in a few years he was turning out 100 films a year, with his company becoming the largest on the British scene.
