The Studio System: B-Movies

One key aspect of the type of vertical integration utilized in the studio system involved film studios being in control of distribution of their movies, through the running of theaters. The five major studios, Paramount, Loews/MGM, Warner Brothers, Fox, and RKO all had the power to show films where and when they pleased, and reap the profits.

By owning the local cinema a studio was able to ensure that only films it produced were shown there, and to this end were produced low-cost "B-movies". B-movies were generally of lower quality, since their low budget precluded use of big-name actors and directors, but had a predictable profit and could be used to fill up screens when more expensive, "block buster" type pictures weren't showing.

Out of the five major studios, RKO can be noted for being the most invested in the B-movie industry. Films like "I Walked With a Zombie" (1943) and "Cat People" (1942), both directed by Val Lewton, were vaguely supernatural horror movies which were incredibly successful without great cost to the studio. The nature of these films was such that the studio did not take much notice of their production, which left the directors and writers and B-movies to their own devices, allowing them to include aspects not normally featured in bigger budget pictures, such as more complex and non-stereotyped black characters.