So far this book has implied that the vertically integrated structure of the major film companies profoundly influenced the quantity and quality of the motion pictures produced by Hollywood. Because real estate assets (theaters) rested on a base of intangibles (motion pictures), the production process of these companies had to be well organized to accomplish three goals: first, motion pictures had to appeal to a large cross section of the public; second, they had to attract audiences consistently over long periods of time; and third, they had to be produced in sufficient quantity and on a regular basis to permit quick audience turnover.

To meet these demands, Hollywood had honed an efficient means of producing large numbers of feature films containing stars called the studio system. In place since the mid teens, the system organized production around a central producer...