Since Hollywood films started to get very popular in the west they wanted to make more films to suit the huge audience that they were attracting. A group of men specifically, Marcus Loew, Adolph Zukor, and William Fox came together to make nickelodeons which were 5 cent films shown in shops. Since that was also the beginning of film people were really intrigued by the moving pictures. At first the film was only one reel then it eventually was two reels and they progressed from there. More and more people began to get interested in these films and demand went way up. There was even more demand than there was supply. Because of this “moviemakers began to ask higher terms from the exhibitors through their wholesalers, the exchanges” (Eames 1975). Eventually the major exhibitors were determined to become their own suppliers. Zukor, who was the leader of this movement eventually cut ties with Marcus Loew’s theaters in 1912 and made what is now known as Paramount but what was formally known as Famous Players company. Loew was a very good customer of Zukor but Zukor started “charging a percentage of theatre takings for his bigger pictures, instead of the customary fixed rental. At the same time he kept buying theatres and enlarging his network of exchanges to form an integrated manufacture-distribution-retail organization” (Eames 1975). Because of what Zukor was doing Loew wanted to do the same. Loew was eventually given the opportunity to have Metro Pictures which was made in 1915. Loew had a lot of success with Metro Pictures specifically with the film The Four Horsemen of the Apocalypse but unfortunately they lost the star of that film, Rudolph Valentino to Paramount due to him not getting the raise he wanted in his salary which was an increase of $100. But even with that loss they were still able to produce successful hits that equally just a good because they still had the same director, Rex Ingram a successful film he is known for is The Prisoner of Zenda and Scaramouche (Eames 1975). Loew continued to help Metro gain success by signing a well known child actor at the time which was Jackie Coogan. Loew even made a deal with the former Metro officer and who is and independent producer Louis B. Mayer to make four films a year. All this work eventually became very tiresome for Loew luckily Loew’s right hand man Nicholas Schenck who has been with him since they were working on nickelodeons was able to help him out and lead more. Eventually Lee Shubert came into the picture and he was very interested in merging with Goldwyn pictures. Goldwyn had a lot of well known directors and actors working for them. Goldwyn also had a beautiful studio the only problem was poor management. The management became so poor because Samuel Goldwyn left in 1922 due to being replaced by Godsol. Loew was very excited about the idea of merging with Goldwyn. Then came a lawyer named J. Robert Rubin who has been helping represent Loew along with Metro pictures and Mayer. Rubin advised that Mayer discussed with Loew. During Mayer’s first five years in Hollywood was doing very well and had good actors working for him. The amount of good actors he had didn’t compare to Goldwyn or Metro. But, Mayer was very strong in what Goldwyn and Metro lacked, good management and that was due to help from Harry Rapf and Irving Thalberg. Thalberg was a very important piece when it came to the merging of these production companies. After Loew spoke with Nicholas Schenck a deal was made (Eames 1975). “Loew’s Incorporated was to absorb Goldwyn Pictures and Louis B. Mayer Productions, and the resulting Metro-Goldwyn Pictures would control production and distribution as a subsidiary of Loew’s. Contracts were signed with Mayer as studio chief, Thalberg as supervisor of production and Rubin as secretary. All three were to be vice-presidents; the first two at the former Goldwyn studio, Rubin as their New York contact at Loew’s headquarters” (Eames 1975).
The MGM Film Phenomenon 