Rewinding the Tape: From Reels to Streams, The Evolution of TV and Film Distribution 🎞️➡️📱 (Part 1/3)

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Recap 🪃

Part of a series exploring the impact of the rise of SVOD/streaming on the TV & film value chain. In our first post of this series (unpacking the TV & film value chain,) we started by exploring the effects that the rise of SVOD/streaming has had on Content Creation. Our next post then looked at the impact it’s had on the art (perhaps now science) of Content Aggregation and Packaging. Next up, Distribution!

In this next installment, we'll try to look beyond the well-known effects of streaming on today's distribution models. Instead, we'll take a deeper look into the historical evolution and technological advancements that have gotten us here, exploring the significant role that TV & film Content Distribution has had in shaping today's culture.

Given that unpacking 120 years of history is no small feat 😅 we’ve decided to break down this installment on Distribution into 3 “acts.” This is Act 1 - enjoy!

A Walk Down Memory Lane 🚶🏽♂️

Remember the days when the only way to watch a movie was to catch it at a theater, or where your favorite TV show aired just once a week, at a time dictated not by you, but by some network executive out in LA or NY? Maybe it's just the 90s child in me being nostalgic, but those days had their charm!

This was also the reality of entertainment consumption not so long ago. As we now effortlessly swipe and click our way through endless streams of content, it's easy to forget the journey that TV & film distribution has taken to arrive at this point of convenience and abundance. That’s why I thought it’d be interesting to go back in time and trace the evolution that got us here.

Our next posts will focus on three distinct eras that have shaped TV and film’s distribution journey: 1) the Broadcast Era, where the airwaves ruled; 2) the Home Entertainment Era, marked by the rise of personal video and cable TV; and 3) the current Streaming and Digital Era, a period defined by on-demand content and global connectivity.

Each era has brought its own disruptive changes, marked by technological breakthroughs (find them throughout =⚡️) and shifting consumer expectations. This is a story about more than just how we watch our favorite shows and movies. It's about how technological advancements in distribution have mirrored, and sometimes even catalyzed broader cultural shifts.

So, grab your popcorn (or smartphone) as we rewind the tape and play through a saga where technology meets distribution meets TV and film entertainment.

1⃣ The Broadcast Era (Early 1900s to Late 1980s) 📻

Having set the stage for our journey, let's turn the dial back to where it all began. We're tuning into what we’ll be referring to this period as the “Broadcast” Era, a time that spans from the early 1900s to the late 1980s.

From the early days which laid the foundation of our media consumption habits – back when film distribution was mobile (literally!) and the gatekeepers of the airwaves controlled what we watched and when we watched it – to the mid-20th century, primarily characterized by the emergence and dominance of broadcast networks.

This era saw foundational shifts in content distribution, audience reach, and the commercial structure of the industry. This period's legacy is its demonstration of how technology, regulation, and market dynamics can collectively shape the media and entertainment industry's trajectory.

⏭️ Early 20th Century: The Birth of Cinema & Television 👶🏼

⚡️ Key enablers: film reels, nickelodeons, sound-on-film, and mechanical & broadcast television.

⏳ Early 1900s-1930s: The Dawn of Cinema Distribution 📽️

🔎 From Selling to Exchanging Film (late 1890s): Film distributors frequently speak of “selling” films to theaters even though films are usually rented on a limited basis. This term is a holdout from the late 19th century when most films were sold outright to exhibitors. Films that, in most cases, had not been seen and were not returnable or refundable (talk about poor return policies!). In those early days, a 15-meter reel could cost an exhibitor $25 to purchase, and if the print was properly maintained it could be projected at least 300 times.

By the late 1890s, Norman C. Raff and Frank R. Gammon began renting used Edison films for $10 apiece. This practice of engaging in the renting or trading of motion pictures was soon known as “film exchanges.”

🔎 From Film Exchanges to Nickelodeons (early 1900s): In the early days of cinema, distribution was largely unstructured, with direct deals between filmmakers and theaters being common. The early days of cinema distribution were also characterized by traveling salesmen who would carry film reels, from one theater to another, often showcasing them in temporary venues like fairgrounds or converted storefronts.

This all changed in June 1905, when Harry Davis and John P. Harris rented a vacant storefront at 451 Smithfield Street. The opening of this space, which they called a “Nickelodeon,” and where 450 people paid a nickel to watch a 15-minute film, marked a historic shift in the way movies were distributed and viewed. By 1908, America had 8,000 similar nickelodeons, attracting nearly 2 million visitors. This transition from mobile exhibitions to fixed venues (which became known as nickelodeons,) saw the birth of silent films and laid the groundwork for more complex distribution networks.

⚡️ Let There Be Sound! (1920s): While the first known public exhibition of projected sound films took place in Paris in 1900, it would be decades before reliable synchronization was made commercially practical. The key breakthrough came with the development of technology that could record sound onto a medium that could be synchronized with film. Two significant systems emerged: 1) sound-on-disc, where sound was recorded onto a phonograph disc, 2) and sound-on-film, where sound was recorded directly onto the filmstrip itself.

Sound-on-film would ultimately win out over sound-on-disc and become commonplace due to a few key reasons including:

• Synchronization: The biggest advantage of sound on film was its ability to stay in sync with the images. With sound on disc, if the disc and film got out of sync, it could ruin the movie experience. But with sound on film, the audio and video were always perfectly matched.
• Durability and Reliability: Film strips were more durable and reliable than discs. Discs could easily get scratched or damaged, which would affect the sound quality. Film, with the soundtrack directly on it, didn't have this problem as much.
• Simpler Logistics: Handling a single film strip was much easier than juggling both a film reel and a separate disc. This made things simpler for movie theaters and reduced the chances of errors during playback.
• Technological Advances: As technology improved, the sound quality on film got better, overcoming early limitations (vs. sound on disc). This made sound on film an even more attractive option.

On the back of these innovations, in October 1927 Warner Bros would premier the first feature-length film incorporating synchronized dialogue. The Jazz Singer was a smash box office success for the studio, earning a total of $2.6 million in the US and abroad, almost a million dollars more than the previous record for a Warners film.

By the early 1930s, “talkies” (films with sound) were a global phenomenon and helped secure Hollywood's position as one of the world's most powerful cultural/commercial systems.

🔎 The Studio System Emergence (1920s-1930s): With the advent of sound in films, the film industry also began to see the establishment of more structured distribution channels and further vertical integration by the major studios. This meant that studios started owning the production facilities, distribution arms, and even the theaters where their movies were shown, giving them significant control over the market.

On the back of this trend, major studios like MGM, Warner Bros., Paramount, Fox, and RKO emerged, creating the “Big Five” studio system. Together, the “Big Five” and the “Little Three” (Universal, United Artists, and Columbia) would end up controlling the film production, distribution, and exhibition of over >95% of films in the 1930s. If you’re interested in learning more about this period, check out the following video!

⏳ 1920s-1940s: Birth and Growth of Television Broadcasting 🗼

⚡️ Experimental Broadcasts (1920s): The 1920s witnessed experimental broadcasts, primarily in the form of mechanical television systems developed by inventors like John Logie Baird and Charles Francis Jenkins. These systems used rotating disks and mechanical scanning devices to transmit images. Early broadcasts were limited and primarily in urban areas.

• Radio's Influence on Early TV: Radio technology played a crucial role in the development of early television. Many of the initial television broadcasts were carried out by radio stations, leveraging their existing transmission infrastructure. However, television required a much greater bandwidth than radio, presenting significant technical challenges.

• Television's Slow Adoption: While television technology was developed in the 1930s, it didn't become commercially viable until after World War II. The high cost of technology, limited programming, and the Great Depression were factors that slowed its adoption in its early years. The Federal Communications Commission (FCC) played a pivotal role in regulating and allocating bandwidth for television broadcasts, shaping the industry's development.
• The Challenge of Live Broadcasts: Early television broadcasts were live, with no effective method for recording and replaying content. This limitation meant that television in its earliest form was more akin to live theater than modern TV. The distribution was limited to the range of broadcast signals, which was typically only a few miles from the transmitter.

🎯TL;DR: The early 20th century marked a period of significant experimentation and foundational development in both cinema and television. The evolution from traveling showmen to the studio system in cinema established a model for content production and distribution that would dominate for decades. In television, the transition from experimental mechanical systems to electronic broadcasting laid the groundwork for what would become the most influential medium of the 20th century.

This period was also marked by the emergence of influential companies and individuals in both cinema and television. In cinema, major studios like Warner Bros., Universal, and Paramount played crucial roles in shaping the industry, supported by iconic filmmakers like D.W. Griffith and Charlie Chaplin. In the realm of television, inventors like Baird and Jenkins laid the foundation for the technology, while companies transitioning from radio, such as RCA and Westinghouse, alongside broadcasters like NBC and CBS, were key in bringing television to the mainstream. These entities collectively set the stage for the evolution of both industries in the decades to follow.

⏭️ Mid-20th Century: The Rise of Broadcast Networks 📺

⚡️ Key enablers: VHF (very high frequency) and later UHF (ultra-high frequency) bands, Nielsen ratings, color television, videotape technology, the All-Channel Receiver Act, and the Fairness Doctrine.

⏳ Early 1950s: The Dawn of Network Broadcasting 💼

⚡️VHF and UHF: The use of VHF (Very High Frequency) and later UHF (Ultra High Frequency) bands allowed for more channels within the broadcast spectrum. This technological advancement was key in expanding network broadcasting capabilities. The All-Channel Receiver Act would later require TV sets sold in the U.S. to be able to receive all channels, further pushing the adoption of UHF (ultra-high frequency) channels and the expansion of the television market.

🔎 Network Formation and Expansion (1940s-1950s): Major networks such as NBC, CBS, and ABC in the US established themselves as the primary distributors of television content.

• NBC (National Broadcasting Company): Originally a radio network, NBC quickly transitioned into television post-World War II. It was the first to regularly broadcast television programs in 1941. NBC's early start in television broadcasting gave it a significant edge in building its audience and infrastructure.
• CBS (Columbia Broadcasting System): CBS, another radio powerhouse, entered television broadcasting in 1941. Under the leadership of William S. Paley, CBS was known for its emphasis on news and public affairs programming, which set a high standard for television journalism.
• ABC (American Broadcasting Company): ABC was formed in 1943 after the FCC mandated NBC to divest one of its two radio networks. It was the last of the three to enter television broadcasting in 1948 but grew rapidly by focusing on entertainment programming and targeting a younger demographic.

These networks invested heavily in building extensive broadcast infrastructures. This included building transmitters and relay stations across the US to ensure their signals could reach the broadest possible audience. They also developed affiliate models, partnering with local television stations. These affiliates would carry the network's programming in exchange for a share of the advertising revenue. This model was crucial in expanding their geographical reach.

• Impact on Content and Culture: NBC, CBS, and ABC became synonymous with television in the US and dominated both content creation and distribution, offering a mix of news, entertainment, sports, and cultural programming. These networks became gatekeepers of national culture, deciding which shows aired and at what times. This centralized model created a shared viewing experience on a national scale, with shows like I Love Lucy and The Ed Sullivan Show becoming cultural phenomena.

⚡️ Advertising and Commercialization: Broadcast networks relied heavily on advertising revenue. The primacy of the “Nielsen ratings” system began here, measuring audience size and demographics to determine advertising rates. Popular shows commanded higher ad prices, leading to a model where viewership numbers significantly influenced content decisions. American network TV shows were often syndicated to international markets, although this was secondary to their domestic business model. Meanwhile, in countries like the UK, public broadcasting services like the BBC followed a different model, focusing on license fee-funded content rather than advertising.

⏳ Late 1950s to 1960s: The Golden Age of Television 🏆

🔎 The Golden Days (1950s-1960s): This period marked the “Golden Age” of Television, with the medium becoming a household fixture. Major networks like NBC, CBS, and ABC dominated the market, producing and distributing content that was primarily designed for family viewing. The programming was scheduled and linear, with viewers tuning in at specific times to watch shows.

This era also saw the start of content diversification, including the introduction of different genres such as sitcoms, dramas, game shows, and news programs. The aim was to cater to a wide range of audiences to maximize viewership. By the late 1950s, television had replaced radio as the dominant broadcast medium. In 1948, only 1% of U.S. households owned a television, but this number grew to 75% by 1955.

🔎 Emergence of Television News and Live Telecasts (1950-1960s): Iconic programs like CBS's See It Now and NBC's Huntley-Brinkley Report began to rival newspapers and radio as primary news sources for the American public, while the ability to broadcast events live, such as the 1969 moon landing or President Kennedy's assassination in 1963, transformed television into a medium that not only entertained but also united viewers in real-time shared experiences. These events underscored television's unique ability to bring momentous, history-making events directly into people's homes, impacting public perception and collective memory.

⚡️ Regulatory Landscape: In the US, the Federal Communications Commission (FCC) played a crucial role in regulating broadcast content and licensing. Regulations such as the Fairness Doctrine (introduced in 1949) required the holders of broadcast licenses both to present controversial issues of public importance and to do so in a manner that fairly reflected differing viewpoints.

⚡️ Videotape Technology (1950s): The introduction of videotape in the late 1950s revolutionized television production and distribution. It allowed for easier editing, storage, and reuse of content, replacing the live broadcast model with pre-recorded shows.

⚡️ Color Television and Expansion of the Network Era (1960s): The introduction of color broadcasting in the 1960s, and the subsequent transition away from black & white TV, was a major technological milestone. It required significant investment from networks but also offered a more engaging viewing experience, leading to an increased audience and, consequently, more advertising revenue.

🎯TL;DR: This mid-20th Century era was marked by groundbreaking technological advancements, like color TV, which transformed viewer experiences. The dominance of network broadcasting created a unified national media culture, heavily influenced by advertising models and driven by ratings. The rise of broadcast news and live TV brought immediacy and a shared experience to television viewing, making it a central medium in society, while regulatory environments played a crucial role in shaping content, particularly news and political broadcasts.

Lastly, the international influence of American television began to spread, even as other countries developed unique broadcasting models, reflecting a diverse global media landscape. This period laid the foundational structures and practices that would shape the future of TV and film.

🎬 Wrapping It Up: The Big Picture.

The Broadcast Era, from the early 1900s to the late 1980s, was a transformative period in media, marked by significant technological and cultural shifts.

In cinema, the transition from film exchanges to nickelodeons revolutionized film distribution, creating a more structured and accessible market. The advent of sound-on-film technology, heralded the era of "talkies," solidifying Hollywood's global influence. The emergence of the studio system further centralized control over film production, distribution, and exhibition.

Television underwent its own revolution as it evolved alongside cinema. The transition from experimental mechanical systems to electronic broadcasting, catalyzed by radio technology and regulatory frameworks like the FCC, laid the foundation for widespread TV adoption. The birth and growth of network broadcasting, driven by technological advances such as VHF/UHF bands and color television, established NBC, CBS, and ABC as dominant forces in content creation and distribution. This period also saw the rise of television news and live telecasts, significantly impacting public perception and collective experiences. The combined effect of these developments was the creation of a unified national media culture, heavily influenced by advertising and ratings.

As we wrap Act 1 of this series on Content Distribution, we’ve seen how the Broadcast Era established foundational structures and practices in both cinema and television, setting the stage for future developments in the industry. This era demonstrates the profound impact of technology, regulation, and market dynamics in shaping the trajectory of the media and entertainment sectors.

Stay tuned: In Act 2 of this “mini-series” on the evolution of TV & film Distribution, we will focus on the Home Entertainment era, a period between the late 1980s and early 2000s that redefined the concept of 'prime time' and introduced us to the luxury of content on our terms. So, keep an eye out for that!

📩 In The Meantime…

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