The Delivery System Is the Message

From Lillian Gish’s autobiography, The Movies, Mr. Griffith, and Me:

In the tail end of the nineteenth century, a new phenomenon had captured the imagination of the American public. In places called “penny arcades,” which were usually rented stores, people could see “moving pictures”—strips of film on assorted subjects—by dropping a penny into a slot and peering into a machine called the Kinetoscope. A few years after the Kinetoscope made its appearance, it was superseded by the Mutoscope, a peep-show machine owned by the American Mutoscope and Biograph Company, one of the leading motion picture companies. By 1896 film images were being projected on screens, usually in vaudeville houses. These early movies, which were mostly photographed vaudeville acts, were greeted enthusiastically. But the novelty was short-lived. By 1900 movies were the last act on the programs in the vaudeville theaters in which they were shown.

Movies seemed to have no future until, in the first year of the century, vaudeville actors struck for higher wages. Theater owners had no choice but to show movies exclusively. Film equipment was purchased in large quantities—until the end of the strike. Projection manufacturers, who had responded to the demand while it lasted, suddenly found themselves overstocked; theater owners were willing to sell their machines cheaply. The penny arcade owners, who had long wanted to show films on screens but had been unable to compete with the theater owners, now had an opportunity to buy the equipment at bargain prices.

Not only arcade owners but small-time entrepeneurs everywhere found a new and quick source of income. They rented unused stores, fitted them with projection machines, a screen, and some chairs, and charged a nickel admission. Called “nickelodeons,” these new movie houses, cheap and accessible to everyone, enjoyed phenomenal success, and were established in small towns and large cities throughout the country.

I found quite a number of things interesting about this little snippet of history. First, notice how the delivery system and the creation of a mass market drove the format of motion pictures? The first movies were short: sometimes just a few frames, then longer. But looking through a peephole at the flickering pictures limited the length of a movie—it’s just too uncomfortable to peer into a mutoscope for longer than a few minutes. And each viewer needed his or her own mutoscope. By projecting the movie onto a screen and packing chairs into a darkened room an arcade owner could get a lot more return for a lower capital investment—just one motion picture projector, a screen, and some chairs. Since the movies themselves were rented by the week, that presented the possibility of a lot more revenue at a lower cost than had otherwise been possible.

However, when sitting in a chair rather than leaning over a mutoscope, the members of the audience could watch longer movies. The very first feature length motion picture was an Australian picture produced in 1906. With the technical, financial, and market building blocks in place, feature length films blossomed.

Supply and demand were essential factors in creating a mass market. It took a supply shock (the actors’ strike) to nudge tastes in a different direction along with a fall in the capital requirements (the glut of projection equipment resulting in price drops).

It illustrates some other things that have been recurrent themes here, too. The vaudeville theater owners had a very restrictive view of what business they were in. Rather than seeing themselves as mass entertainment emporiums their preference was to identify themselves as places for live entertainment (there were status issues involved in this decision, too). The key point here is that the vaudeville theater owners didn’t see the penny arcades as competition. How wrong they were!

Fast forward all of this to today. The systems for delivering entertainment to a mass audience are evolving very rapidly. First came Internet shorts, then serials and movies. Now the proliferation of smartphones and tablets provide even more media.

I don’t think the blockbusters that have been the mainstay of the Hollywood film industry for the last thirty some-odd years are well-adapted to these new entertainment delivery systems. The studios and production companies are geared up to promote their products so I don’t expect them to die out but I think there are openings for new adaptations of old forms to come to the forefront.

Note that box office receipts haven’t been great this year and the game industry’s grosses are higher than the movie industry’s with better margins.

8 comments… add one
  • michael reynolds Link

    Have you seen HUGO? It deals with the earliest days of movies. Not a great Scorcese movie but very much worth your while.

  • No, I haven’t. I was deterred by some of the reviews I read.

  • michael reynolds Link

    It’s beautifully shot as you’d expect. The source material limits it a bit, it’s over-long and too self-congratulatory. But it’s still an interesting movie and in my opinion worth seeing.

  • sam Link

    “The vaudeville theater owners had a very restrictive view of what business they were in. Rather than seeing themselves as mass entertainment emporiums their preference was to identify themselves as places for live entertainment”

    The now-classical term for this is “marketing myopia”, coined by Theodore Levitt in an article of the same name in the Harvard Business Review.

    Wouldn’t surprise me in the least to find there’s still a lot of that myopia around. Or that it increases as the aversion to risk increases.

  • Icepick Link

    The vaudeville theater owners had a very restrictive view of what business they were in.

    After Walt and then Roy Disney died, the top management at The Walt Disney Company had a very restrictive view of their business. They thought that they were a theme park business that made some movies. This attitude led to them ignoring the opportunities they had in Florida, where they had ~28,000 acres around The Magic Kingdom largely unused. They continued with plans for EPCOT, mainly out of inertia, but did not plan to develop the land any further.

    Various people (including Walt’s son-in-law, overly maligned in later years) pointed out that the company had HUGE potential as a hotel operator, as well as other options. It took a case of greenmail to force out the old management and bring in the team of Eisner, Wells and Katzenberg that turned the company into what it is. (Walt Disney World Resorts is vastly more developed now than it was in 1980, when my mother started work there. The amount of revenue generated is staggering – and no state or local taxes!)

    What Walt and Roy had figured out early was that the company could provide content across many different forms, from movie shorts, to feature length films, to merchandise, eventually to television and theme parks. Now they’re everywhere in every medium. They tailor the content to the medium (not always successfully, of course), but the content is the most important ingredient for success. The management between the time of Walt and Roy’s deaths and the Eisner crew had largely forgotten that Walt got rich constantly exploiting new opportunities with good content.

    The delivery system for “movies” needed to be developed, and the need to use it instead of something else needed to be prodded, but ultimately what matters is content. The mediun determines what that content would be best (as “movies” became “talkies”, a new genre, the musical, was created to best exploit the new features), but the content remains the thing.

    Video games rule at the moment in part because the technology is there to make extremely impressive graphics. I remember seeing the ads for that John Cusack end-of-the-world film from a year or two ago, and I kept thinking, “Wow, those look like really impressive cut scenes from a video game.” Had I the money, I might have been interested in the video game, but I had no interest in spending any TIME, much less money, to see the movie. It looked completely devoid of content.

    Content is KING, and will remain so. It’s just a question of who will figure out how to tailor the best content to a given medium first.

    PS Most likely everyone here will believe me about content being king. But if you don’t, ask Michael Reynolds about how it’s worked out for him.

  • ponce Link

    The Broadway play “Wicked” grossed $86,697,712 showing at a single theater this year.

    The latest Harry Potter movie grossed $381,011,219 showing at 4,375 theaters.

    Vaudeville is still around.

  • Icepick Link

    Look at the difference in ticket prices between “Wicked” and HP Part Whatever. Go to a theatre out in the hinterlands – “Wicked” was the only show I have seen in the last 11 years whose audience wasn’t predominantly gray-haired. (I used to see a few shows from time to time.) Live theatre won’t die, but it is becoming class distinctive, like opera. No one without a lot of spare money can afford to go to more than a couple of shows a year.

  • ponce Link

    Makes sense.

    If you want to see talented entertainers performing live, it will cost you big bucks.

    If you want to see mediocre entertainers rehashing very very stale stories, it won’t cost you much (provided you don’t buy the snacks).

    Vaudeville moved upscale in the face of cheap, low quality competition.

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