Until this point, the cinemas of France and Italy had been the most globally popular and powerful. But the United States was already gaining quickly when World War I (1914–1918) caused a devastating interruption in the European film industries. The American industry, or "Hollywood", as it was becoming known after its new geographical center in California, gained the position it has held, more or less, ever since: movie factory for the world, exporting its product to most countries on earth and controlling the market in many of them.
By the 1920s, the U.S. reached what is still its era of greatest-ever output, producing an average of 800 feature films annually,[10] or 82% of the global total (Eyman, 1997). The comedies of Charlie Chaplin and Buster Keaton, the swashbuckling adventures of Douglas Fairbanks and the romances of Clara Bow, to cite just a few examples, made these performers’ faces well-known on every continent. The Western visual norm that would become classical continuity editing was developed and exported - although its adoption was slower in some non-Western countries without strong realist traditions in art and drama, such as Japan.
This development was contemporary with the growth of the studio system and its greatest publicity method, the star system, which characterized American film for decades to come and provided models for other movie industries. The studios’ efficient, top-down control over all stages of their product enabled a new and ever-growing level of lavish production and technical sophistication. At the same time, the system's commercial regimentation and focus on glamorous escapism discouraged daring and ambition beyond a certain degree, a prime example being the brief but still legendary directing career of the iconoclastic Erich von Stroheim in the late teens and the ‘20s.