Hollywood went through tough times in the 1950’s and 1960’s. The rise of television upended Hollywood’s established traditions and forced it to adapt and eventually embrace television. It was tough going, however, but luckily for most studios, their founders had made decisions that helped them survive and grow. This week, we’ll be looking at the (arguably) saving graces that allowed each classic studio to survive.
Universal Pictures was considered the weakest of the larger studios. Its founder Carl Laemmle always had dreams that were bigger than the studio’s bank account. When he bought the sprawling ranch north of Hollywood that became “Universal City”, he could barely afford it. The other Hollywood moguls made fun of him behind his back, referring to the studio as “Laemmle’s Folly” and The Chicken Ranch, after its previous tenants. That Laemmle’s shaky finances required him to still operate part of the property as a chicken ranch no doubt added to Hollywood’s scorn. As a matter of fact, early guests to the studio lot could gain access by buying a dozen eggs. (They would pick them up on the way out.)
The decision to buy that large parcel of land, however, would prove to be Universal’s saving grace. In the 1950’s, long after Mr. Laemmle had passed away, his studio was in trouble. It had never really gained steady footing; its famed horror films were seen as lesser productions. Once television came on the scene, Universal Pictures was in deep trouble. At first, the company was loathe to enter the world of television, though the money that could be made by renting out its famed backlot to television networks would prove to be extremely tempting. It would be too far gone, however, and it would end up selling its storied backlot and studio to MCA, who would then lease out parts of it back to Universal while leasing the rest out to the burgeoning television industry. Sensing an opportunity, however, MCA would snap up the entire company within a few years. Universal would be reunited with its backlot and embrace television as part of MCA.
In the 1960’s, Universal would see a huge opportunity to further extend its empire. DISNEYLAND had opened thirty miles south, bringing millions of tourists who were looking for other things to do. It would open up its backlot for the first time in over forty years, transporting guests on glamour trams and charging much more than just a dozen eggs for admission. The tour would further stabilize the studio’s finances. It would finally become the major studio that its founder had dreamed about.
So, while Carl Laemmle would never gain the success he dreamed about in his lifetime, his visionary decision to risk it all on a parcel of land that wasn’t even located in Hollywood would save his company years after his passing. It is doubtful that Universal Pictures would have survived the television era had it not had its own large backlot. The studio tour grew into a full fledged theme park that its current parent company admits is one of its fastest growing sources of revenue today.
