Universal History

Universal studios is one of the biggest American film studios.Its production studios are located at 100 Universal City Plaza Drive in Universal City, California, an unincorporated area of Los Angeles County between Los Angeles and Burbank.

Distribution and other corporate, administrative offices are based in New York City. Universal is the second longest-lived studio in Hollywood (Viacom's Paramount Pictures is the oldest by only a month

The founder of universal was a German Jewish immigrant named Carl Laemmle, he settled in Oshkosh, Wisconsin, he his job was to manage a clothing store. On a 1905 buying trip to Chicago, he was struck by the popularity of nickelodeons. One story has Laemmle watching a box office for hours, counting patrons and calculating the take for the day. The first week there he had given up dry goods and had bought numerous nickelodeons.

The establishment in 1908 of the Edison-backed Motion Picture Trust meant that exhibitors were expected to pay fees for any Trust-produced film they showed. On the basis of Edison's patent on the electric motor used in cameras and projectors, along with other patents, the Trust collected fees on all aspects of movie production and exhibition, and also held a monopoly on distribution. Later on Laemmle and other nickelodeon owners decided to stay away from paying Edison by producing their very own pictures.

In June 1909, Laemmle started the Yankee Film Company with partners Abe and Julius Stern. That company quickly evolved into the Independent Moving Picture Company.

Laemmle broke with Edison's custom of refusing credit to actors. By naming the stars of films, he was able to attract many of the leading players of the time, and contributed to the creation of the star system. Most notably, in 1910, he actively promoted Florence Lawrence, then known as the "Biograph girl", in what may be the first instance of a studio using a film star in its marketing.

On June 8, 1912, Laemmle merged IMP with eight smaller companies to form the Universal Film Manufacturing Company; this then introduced the word UNIVERSAL into the organizations name.

Laemmle was the primary figure in a partnership that included Mark Dintinfass, Charles Baumann, Adam Kessel, and Pat Powers. BUT sooner or later all would be bought out by Laemmle. The new studio was a horizontally integrated company, with both movie production and distribution capacity (though the company lacked a major circuit of exhibition venues, ownership of which would become a central element of film industry integration in the following decade).
The name was later changed to Universal Pictures Company, Inc.

Near to the end of 1912 the company was mainly focusing there production efforts Hollywood area. In 1915, Laemmle opened the world's largest motion picture production facility, Universal City Studios, on a 230-acre (0.9-km²) converted farm just over the Cahuenga Pass from Hollywood.
Studio management now became the third facet of Universal's operations, with the studio incorporated as a distinct subsidiary organization. Unlike other movie moguls, Laemmle opened his studio to tourists.
Universal became the biggest studio in Hollywood, and remained so for a decade. However, it sought an audience mostly in small towns, producing mostly melodramas, cheap westerns, and serials.

Despite Laemmle's role as an innovator, he was an extremely cautious studio chief. Unlike rivals Adolph Zukor, William Fox, and Marcus Loew, Laemmle chose not to develop a theater chain. He also financed all of his own films, refusing to take on debt. By 1925, Universal had lost its role as the biggest studio to MGM. This was in part due to the talents of a former Universal producer, Irving Thalberg, who left after MGM offered him more money. By the end of the 1920s, Universal was a second-tier studio and would remain so for several decades.

In 1926, Universal also opened a production unit in Germany, Deutsche Universal-Film AG, under the direction of Joe Pasternak. This unit produced 3 to 4 films per year until 1936, migrating to Hungary and then Austria in the face of Hitler's increasing domination of central Europe. With the advent of sound, these productions were made in the German language or, occasionally, Hungarian or Polish. In the U.S., Universal Pictures did not distribute any of this subsidiary's films, but at least some of them were exhibited through other, independent, foreign-language film distributors based in New York, without benefit of English subtitles. Nazi persecution and a change in ownership for the parent Universal Pictures organization resulted in the dissolution of this subsidiary

Keeping leadership of the studio in the family

In 1928, Laemmle, Sr. made his son, Carl, Jr. head of Universal City Studios as a 21st birthday present. Universal already had a reputation for nepotism—at one time, seventy of Carl, Sr.'s relatives were on the payroll. To his credit, Carl, Jr. persuaded his father to bring Universal up to date. He bought and built theaters, converted the studio to sound production, and made several forays into high-quality production.

His early efforts included the 1929 part-talkie version of Show Boat, the lavish musical Broadway (1929) which included Technicolor sequences, the first all-color musical feature (for Universal); King of Jazz (1930); and All Quiet on the Western Front, winner of the "Best Picture" award for 1930. Laemmle, Jr. also created a successful niche for the studio, beginning a long-running series of monster movies, affectionately dubbed: Universal Horror, among them Frankenstein, Dracula, and The Mummy. Other Laemmle productions of this period include Imitation of Life and My Man Godfrey.

The Laemmles lose control

Ironically, Universal's forays into high-quality production nearly broke the company. Taking on the task of modernizing and upgrading a film conglomerate in the depths of the depression was risky, and for a time Universal slipped into receivership. The theater chain was scrapped, but Carl, Jr. held fast to distribution, studio and production operations. The end for the Laemmles came with a lavish remake of Show Boat, featuring several stars from the Broadway stage version, which began production in late 1935. However, Carl, Jr.'s spending habits alarmed company stockholders, especially after the costly flop of Sutter's Gold earlier in the year. They would not allow production to start on Show Boat unless the Laemmles obtained a loan. Universal was forced to seek a $750,000 production loan from the Standard Capital Corporation, pledging the Laemmle family's controlling interest in Universal as collateral. It was the first time in Universal's 26-year history that it had borrowed money for a production. Production problems resulted in a $300,000 overrun. When Standard called the loan in, a cash-strapped Universal couldn't pay. Standard foreclosed and seized control of the studio on April 2, 1936. Show Boat was released in 1936 and is widely considered to be one of the greatest film musicals of all time. However, it was not enough to save the Laemmles, who were unceremoniously removed from the company they had founded.

Standard Capital's J. Cheever Cowdin took over as President and Chairman of the Board of Directors and instituted severe cuts in production budgets. Gone were the big ambitions, and though Universal had few big names under contract, those it had been cultivating, like William Wyler and Margaret Sullavan, now left. By the start of World War II, the company was concentrating on smaller-budget productions: westerns, melodramas, serials and sequels to the studio's horror classics. Only the films of young singer Deanna Durbin were given reasonably high budgets, under the control of Joe Pasternak upon his emigration from Europe; if any one star can be said to have kept Universal in business during the late 1930s, it was Durbin, despite her often being woefully miscast as a young teenager when she was, clearly, a fully adult woman.

Fortunately, just when Durbin outgrew her screen persona, the studio signed the comedy team of Abbott and Costello (Bud Abbott and Lou Costello) to a long-term contract. A string of low-budget hits beginning with "Buck Privates" (1941) placed Abbott and Costello among the top box office draws in the country, improving Universal's bottom line even more than Durbin's glossy productions had. Other low and medium budget fare dominated through the years of World War II, when the studio's roster included many cast-off Paramount players like Mae West, W.C. Fields, and Marlene Dietrich. The studio also churned out various sequels for each of its monsters. During the war years Universal did have a co-production arrangement with producer Walter Wanger and his partner, director Fritz Lang, but their pictures were a small bit of quality in a schedule dominated by the likes of Cobra Woman and Frontier Gal.

By late 1950’s, the motion picture business was in trouble. The combination of the studio/theater-chain break-up and the rise of television saw the mass audience drift away, probably forever. The Music Corporation of America (better known as MCA), mainly a talent agency, had also become a powerful television producer, renting space at Republic Studios for its Revue Studios subsidiary.
After a period of complete shutdown, a moribund Universal agreed to sell its (by now) 360-acre (1.5 km²) studio lot to MCA in 1958, for $11 million. Although MCA owned the studio lot, but not Universal Pictures, it was increasingly influential on Universal's product. The studio lot was upgraded and modernized, while MCA clients like Doris Day, Lana Turner, and Cary Grant were signed to Universal Pictures contracts.

The actual, long-awaited takeover of Universal Pictures by MCA finally took place in mid-1962, and the production subsidiary reverted in name to Universal Pictures, while the parent company became MCA/Universal Pictures Inc. Universal-International Pictures Inc. remained a subsidiary only engaged in export/international release of Universal product.

for a few years in the 1960s Universal became what it had never been: a full-blown, first-class movie studio, with leading actors and directors under contract; offering slick, commercial films; and a studio tour subsidiary (launched in 1964.

Though Universal's film unit did produce occasional hits, among them Airport, The Sting, American Graffiti, and a blockbuster that restored the company's fortunes, Jaws, Universal in the 1970s was primarily a television studio. Weekly series production was the workhorse of the company. There would be other film hits like E.T: The Extra-Terrestrial, Back to the Future, and Jurassic Park, but overall the film business was still hit-and-miss.

In the early 1970s, Universal teamed up with Paramount Pictures to form Cinema International Corporation, which distributed films by Paramount and Universal worldwide. It was replaced by United International Pictures in 1981, when Metro-Goldwyn-Mayer joined the fold. UIP began distributing films by start-up studio DreamWorks in 1997, and MGM subsequently dropped out of the venture in 2001, letting 20th Century Fox internationally distribute its films. In 1990, MCA created MCA/Universal Home Video Inc. to enter the lucrative videotape and later DVD sales industry


NBC Universal

Burdened with debt, in 2004 Vivendi Universal sold 80% of Vivendi Universal Entertainment (including the studio and theme parks) to General Electric, parent of NBC. The resulting media super-conglomerate was renamed NBC Universal, while Universal Studios Inc. remained the name of the production subsidiary. Though some expressed doubts that regimented, profit-minded GE and high-living Hollywood could coexist, as of 2007 the combination has worked. The reorganized "Universal" film conglomerate has enjoyed several financially successful years. As presently structured, GE owns 80% of NBC Universal; Vivendi holds the remaining 20%, with an option to sell its share in 2006.

In late 2005, Viacom's Paramount Pictures swooped in to acquire DreamWorks SKG after acquisition talks between GE and DreamWorks stalled. Universal's long time chairman, Stacey Snyder, left the company in early 2006 to head up DreamWorks. Snyder was replaced by Marc Shmuger, a veteran Universal and studio executive. Shmuger is well respected in the industry, with a reputation for being very bright and opinionated. Some question his experience in dealing with talent. With no blockbusters on Universal's 2006 slate, Shmuger's tenure will be defined by what the studio develops in the next few years.


Partnership with universal

Universal was created from the merger of Laemmle's IMP with several smaller film-production businesses. These companies (and their proprietors) included:
• Champion Motion Picture Co., Mark Dintinfass, president
• Nestor Motion Picture Company, David Horsley
• The New York Motion Picture Company, Charles Baumann and Adam
Kessel,proprietors
• Powers Motion Picture Co., Pat Powers, president
• Rex Motion Picture Co., William Swanson