In the late 1940’s, there were changes afoot in Hollywood and in the world at large. These changes- and how they were dealt with by each studio- would seal the fate of each respective organization. The biggest challenge faced by Hollywood was the rise of television. Up until then, if someone wanted to watch something, a drive out to a movie theater was the only way to accomplish that. Television threatened the stranglehold that Hollywood had on entertainment options. While television is now a part of any decent entertainment company, the major studios resisted television in its infancy. One company, however, chose to embrace television- Walt Disney Productions.
Walt Disney Productions had barely begun producing live action features at the time, becoming a larger player in theaters. Without the huge infrastructure costs of the larger studios, Disney was primed to operate under the reduced financial constraints of television without really having to worry about costs. Even more important for Walt Disney, however, was that he could reach television’s vast audience to promote his biggest, riskiest dream- DISNEYLAND. More than just the money he would directly earn from providing television programming, Mr. Disney could gain unprecedented attention for his Magic Kingdom that was sprouting up in Anaheim, California. Walt Disney’s decision to embrace television without selling his back catalog and diversify into the theme park business prepared his company to catapult into the big leagues. With the company no longer reliant on box office receipts or fickle audiences, it was poised to become the media behemoth it is today.
MGM, on the other hand, was slow to sense the changing entertainment landscape. Louis B. Mayer was loathe to get involved in television and not willing to adjust his tried and true formula of filmmaking. With television on the scene, the studios needed to reduce their output and spend more on the films they did make to get audiences off their couches and into theaters. MGM, with its expensive contracts and studio infrastructure was the least prepared to deal with this major change. Louis B. Mayer’s stubbornness and resistance to change further weakened the mighty lion. After Mayer’s death, his beloved studio was snatched up by a corporate raider who sold off just about everything that wasn’t nailed down. The film catalog was sold off, along with the famed studio, which had been reduced to a shell of its former self. The studio did diversify into low end films like Night of the Lepus and glitzy casinos. Eventually, the company would buy United Artists and try to make do with a reduced slate of films. The studio remains alive today, split off from its casino arm and a mere shell of what it used to be. Ironically, it currently boasts a successful television division that has produced the Stargate franchise, Survivor, and The Handmaid’s Tale among other shows.
Universal Pictures had never gained the prominence it probably deserved under the Laemmle Family. Both Carl senior and junior could never quite get the capital to fully realize their vision. Despite having a studio lot whose size rivaled that of MGM, it hadn’t fully developed the vast acreage. In its early years, outsiders derisively referred to the Universal studio Lot as “The Chicken Ranch” because the Laemmles still operated part of the egg farm that had previously occupied the property. In the silent era, people were permitted to tour the lot provided they bought a dozen eggs that they could pick up on the way out. After television shook up the film industry, Universal was in dire straits and had to sell its studio lot to MCA, led by Lew Wasserman. Lew signed a deal where the beleaguered Universal would lease back the parts of the lot it actively used, while Lew’s MCA rented out the rest for television production. Wasserman quickly realized the ridiculousness of the situation; couldn’t Universal Pictures make television shows in addition to films as a way to stay afloat? Wasserman decided to force out Universal management and make a bid for the company. He then accomplished what neither Laemmle ever could; make Universal Pictures a consistently profitable enterprise. He brought Alfred Hitchcock onboard and fully embraced television. Taking advantage of the tourists attracted to Southern California by DISNEYLAND, he reopened the studio gates to the general public for the first time since the silent era, charging much more than just the cost of a dozen eggs. This mini major leapfrogged over MGM to become an industry powerhouse.
