Stardom or Serfdom?
During the 1930's new production trends and the depression radically altered the American film industry. The newest and most successful production trend of the time developed by the studios was the musical. "Talkies" provided a new medium for Hollywood - and they also provided a need for new talent and a reformation of the old. Musicals created fanciful worlds where the economic plight of the times could be transformed into the more cheerful mediums of song and dance and, therefore, be less painful. The Great Depression increased the need for talent in the film industry. Some of the most successful talent of the time developed from the new Hollywood musical. During this time of great loss, Hollywood's stars, in multiple mediums, provided their best means of economic and popular stability in an instable world.
The dependency between the studio and the star lead to a relationship where the studio controlled almost every aspect of the star's career and, sometimes, life, in order to prevent taking an economic risk. Although not immune to the economic suffering that America faced at this time, studio executives and the most prominent stars of the day still received high salaries. However, the star, Hollywood's most precious possession had little or no free will when it came to following the studio's rules. Almost every part of the star's life the studio controlled, thus making the star's role much like that of a servant.
Studios justified such strict controls upon their stars by placing the stars as their chief means of maintaining an economically successful business. They used the power of the star's image in a film to raise the rental price of the film they produced. During the 1930's, the studio would present a film to an exhibitor who would in turn agree to pay a certain rental price for the film to be displayed in a theater. This rental price became hard to negotiate during the depression because of the great financial risks involved. However, the studios developed an important bargaining instrument that allowed them almost any price they desired - the star. By pointing to the past success of a star in the box-office, a distributor could be justified in asking for a higher rental price for the film. Thus, Hollywood had to ensure that the stars maintain any success that they achieved in the past because it yielded a great financial bargaining power.
In order to ensure the success of their stars, the Hollywood studios created the "option contract." The studios reviewed this contract every six months for a period of up to seven years. At each review the studio had the right to either end the star's contract, thus placing him or her out of work, or to continue the contract with an added salary bonus to be determined by the studios. The "option contract" contained no provision for the star to end it, continue with it, or even negotiate salary - the studios held the power and the talent could only comply. Studios could even lend stars to other studios - something they often did instead of letting a highly paid star sit around idle. Certain restrictions also appeared in the contracts. These restrictions gave the studios even more power over their star property by allowing the studio almost complete control over the star's image and the right to sue if the star refused to comply. Some stars, however, retained certain rights even in the face of the "option contract." This small amount of freedom manifested itself in such rights as being able to refuse certain roles, etc. Fred Astaire, for example, retained the right from the studios to control the musical and dance numbers in his films. He would perfect not just the dance routine, but also the musical number, before Ginger Rogers would even have a chance to look at it. This amount of freedom for a star, however, was rare and only occurred if it could economically benefit the studios themselves.
Some of the stars during the 1930's decided to fight against their profession becoming serfdom. This resistance manifested itself in the formation of the Screen Actors Guild in 1933. Angered by possible pay cuts and new provisions in the Code of Fair Competition created by the producers, many stars turned to the Guild for the safety of their own economic stability. Studio executives fought back charges of their own high salaries contributing to Hollywood's financial troubles by portraying the Guild as not complying with the National Recovery Program. Studios also incorporated pro-NRA propaganda in their films in order to win favor with the institution, but in the end, the stars won with an executive order from President Roosevelt. Essentially, however, the relationship between the Hollywood studio and its stars continued in much the same manner as before, only granting a few more protections to the industry's greatest asset.
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