Tuesday, October 30, 2007

Warners & Sound

The first studio to take sound seriously was Warners Bros. At the time they were not a major, which is evident by the absence of vertical integration. The studio operated without international distribution and their films were released to small independent theatres, which made sound a lucrative opportunity in competing against the major players by reducing the costs of orchestral accompaniment.
To assist the implementation of sound Warners Bros. approached finance company Goldman Sachs and managed to convince the firm of the potential of sound, which lead to the joint venture between Warners Bros and Western Electric. In 1926, they established Vitaphone to produce sound films and market sound equipment.

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