The film business
In 1907 there were about 4,000 small “nickelodeon” cinemas in the United States. The films were shown with the accompaniment of music provided by a pianist, though there could be more musicians. There were also a very few larger cinemas in some of the biggest cities. Initially, the majority of films in the programmes were Pathé films, but this changed fairly quickly as the American companies cranked up production. The programme was made up of just a few films, and the show lasted around 30 minutes. The reel of film, of maximum length 1,000 feet (300 m), which usually contained one individual film, became the standard unit of film production and exhibition in this period. The programme was changed twice or more a week, but went up to five changes of programme a week after a couple of years. In general, cinemas were set up in the established entertainment districts of the cities. In other countries of the Western world the film exhibition situation was similar. With the change to “nickelodeon” exhibition there was also a change, led by Pathé in 1907, from selling films outright to renting them through film exchanges.
The litigation over patents between all the major American film-making companies had continued, and at the end of 1908 they decided to pool their patents and form a trust to use them to control the American film business. The companies concerned were Pathé, Edison, Biograph, Vitagraph, Lubin, Selig, Essanay,Kalem, and the Kleine Optical Company, a major importer of European films. TheGeorge Eastman company, the only manufacturer of film stock in the United States, was also part of the combine, which was called the Motion Picture Patents Company (MPPC), and Eastman Kodak agreed to only supply the members with film stock. License fees for distributing and projecting films were extracted from all distributors and exhibitors. The producing companies that were part of the trust were allocated production quotas (two reels, i.e. films, a week for the biggest ones, one reel a week for the smaller), which were supposed to be enough to fill the programmes of the licensed exhibitors. Vitagraph and Edison already had multiple production units, and so had no difficulty meeting their quota, but in 1908 Biograph lost their one working director. They offered the job of making their films to D. W. Griffith, an unimportant actor and playwright, who took up the job, and found he had a gift for it. Alone he made all the Biograph films from 1908 to 1910. This amounted to 30 minutes of screen time a week.
But the market was bigger than the Motion Picture Patents Company members could supply. Although 6,000 exhibitors signed with the MPPC, about 2,000 others did not. A minority of the exchanges (i.e. distributors) stayed outside the MPPC, and in 1909 these independent exchanges immediately began to fund new film producing companies. By 1911 there were enough independent and foreign films available to programme all the shows of the independent exhibitors, and in 1912 the independents had nearly half of the market. The MPPC had effectively been defeated in its plan to control the whole United States market, and the government anti-trust action, which only now started against the MPPC, was not really necessary to defeat it.
