Although there existed several aspects of the studio that were necessary to run the system, the most important one, in my opinion, was the contracting of actors. Actors and actresses worked under contract for one particular studio, starring in movies of that studio. Eventually, the studios and actors would be associated with each other, and the bigger stars would be relied upon in order to promote the films. However, in order to keep a tight hold on the movie industry, some studios would sometimes lend an actor to another studio, but they were still pretty much owned by only a single studio. Contracting is important because the actors were essential to the popularity of a movie during that time.
The actors became the main representation of the kind of works the studio did. The movies created would fit the talent and personality of the stars that were under contract, so the stars had a great effect on the type of movies made by the studio. The actors and actresses were often typecasted into specific roles. Each studio had a unique style and reputation.
For example, MGM was known for its musicals. Several of the contracted actors were known for their ability to sing or dance, which is why MGM Studios created several musicals during the era of Classic Hollywood. The biggest stars, such as Judy Garland, Fred Astaire, and Gene Kelly, were almost guaranteed to either dance or sing in a movie, and their popularity was used to promote the movies.
The contracted stars had a major impact on the studio system and the audience of the movies. An oligopoly was created within the industry, and regulation began to happen.
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