American Films Abroad

Book excerpt: While Hollywood contends that the domination of American films abroad is due to the quality of its product, the truth is that the major American movie studios have established a virtual worldwide monopoly on the distribution and exhibition of the film industry. The United States government has greatly aided Hollywood's effort's and continues to do so.The U.S. governemnt first became heavily involved with the film industry in 1916 when U.S. consuls were instructed to report on the market for American movies. The government, in turn, made this information available to the industry. Eight companies (MGM, Paramount, 20th Century-Fox, RKO, Warner Bros., Universal, United Artists, and Columbia) used the government information to establish a virtual cartel. This work examines the practices of this cartel in its various forms, how it came to dominate the industry worldwide, and the role the U.S. government has played in advancing its monopolistic practices.