The Contract System
As mentioned above, the American film industry was rationalized and subject to scientific management techniques. This included a highly specialized division of labour designed to facilitate mass production of films. Accordingly, during the years 1930 to 1949 the studios employed all personnel, even their stars, on long-term or permanent contracts. The stars, directors and crew were contracted to a particular studio and even those who had established a reputation in the industry were employed on a contract basis. This meant that individuals could be assigned to their roles with ease, speed and minimal expense. Contracts tied stars to a particular studio, which helped to target and attract a big audience for the studio's films. If, however, a star refused to work on a particular film then s/he was not given an alternative and had to sit out for one and a half times the duration of that production while suffering loss of income. As a result many seven-year contracts were extended to twice that length. Often, however, stars were loaned out to other studios; Columbia regularly borrowed stars from its rivals. The contract system may have been a source of bitterness for many Hollywood stars during these years, but it contributed to the success of the studio system.
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