Shots rang out from a World War 2 era Italian carbine. Three of the bullets hit their intended target, forever altering the fabric of America. The president was dead and a new administration was about to take control. On a plane, just taking off from Love Field in Dallas, bringing back the remains of the now deceased president , his Vice President was given the oath of office. It was a somber moment to say the least. Off to the side of the plane, as Lyndon Johnson raised his hand to take the oath, Jack Valenti the son of Italian immigrants and key communications aid to the incoming president looked on. The expression of his face was different than those around him. there was a faint air of excitement about him. While others looked on stunned at the day’s event, Valenti knew that his time had come.
In 1922, the “Big Three” motion picture studios; Famous Players-Lasky, Metro-Goldwyn and First National founded the Motion Picture Producers and Distributors of America, headed by former U.S. Postmaster General Will H. Hays. In May 1925 Independent Producers Association, together with Motion Picture Theater Owners Of America, accused the “Big Three” for acting as a trust and denounced Hays as their “mouthpiece”. In October they filled claims to the Federal Trade Commission, providing a 280-page report detailing “Big Three’s” tactics. The “Big three” made a few concessions to quell the critics but the monopolistic studio system was eventually established and not brought down until 1948: United States v. Paramount Pictures, Inc.
The group adopted the Motion Picture Production Code, popularly known as the “Hays Code” in 1930. The Code spelled out what was acceptable and what was unacceptable content for motion pictures produced for a public audience in the United States. Enforcement of Hays Code began in 1934 and continued until 1968, when it was replaced by the MPAA film rating system. The office enforcing the code was known as the Hays Office and later the Breen Office after its first administrator, Joseph Breen. Local censorship could still be imposed put the movie industry attempted to control content going in as opposed to going out.
In 1945, Hays was succeeded by former U.S. Chamber of Commerce President Eric Johnston. It was during Johnston’s tenure that the name of the organization was changed to “The Motion Picture Association of America”. Johnston inherited the stringent censorship responsibilities associated with the Hays Code, but added to his mission the promotion of American films, which were gaining in popularity overseas in the post-World War II era. The MPAA wanted to ensure that foreign markets whose value could be a high as 65% of a movie’s revenue remained open.
The studios had always know that they were engaged in the acts on a monopoly, in full violation of the Sherman Anti-trust act. And they did all they could to distance themselves from the machinations of Washington and The eye of the justice department
In 1948 the unthinkable happened the Paramount ruling was issued in a an attempt to break the monopoly that had been inflicted on America by the operating members of the MPAA, namely the major studios. The group that had escaped to the West Coast in an attempt to leave the influence and imposition of the monopoly created the the patents held by Thomas Edison, was slowly woven even tighter but it was a far more nuanced grip on the movie industry. This ruling shook Hollywood to its core and for a moment in time the door was let open for independent producers and distributors to ply their trade
Eric Johnston’s died in 1963. There was now an opportunity for the MPAA and the major studios to re-assert themselves. It was time to weave again the monopoly that gave the studios wealth but more importa1ntly control. The studio executives pondered and contemplated a strategy for counter attacking the Paramount decree. the MPAA’s top post remained unfilled for three years, while studio executives searched for a successor. It was decided that it was best to to draw from the power base in Washington, They need someone who was adept at arm twisting and a person who could centralize power, rebuild the monopoly and deflect any Department of Justice inquiry.
Enter Jack Valenti.
In 1966, Valenti, at the strong finnancial enticement of Universal Studios chief Lew Wasserman, no strnger to the business of monopolies, having single handedly atttmept to control television through his control of actor via his talent agency and Regency Production, a production company who at one time control 80% of the pre-filmed television production in the USA. Jack, sensing deep opportunity resigned his White House post and became the president of the Motion Picture Association of America. With Valenti’s arrival in Hollywood, Wasserman now had a Washington based counter part who could wield the will of the major studios. Together orchestrated and controlled how Hollywood would conduct business for the next several decades.
Valenti, jumped into his new job as the industry’s chief lobbyist for the six majors. He made sure that their business would proceed without federal interference or oversight. He worked diligently with his Washington cronies for favorable tariff rulings, and in the process pushed hard tp ensure that Hollywood’s status as one of the few movie industries that was not subject to government censorship. He also would rally against business that could possibly deplete the revenue of the majors. At one time he claimed audaciously that VHS was to the movie industry as was the Boston Strangler was to women. He was skillful, adept,manipulative and could easily work both sides of the aisle.
When Valenti first started his job in movies, State and local censor boards still could force a distributor to cut or even ban films. The industry which saw a very quick loosening of cinematic morals on the horizon was worried that these local authority would impede business. Valenti always the clever conjurer convinced Washington that the movie industry should be self regulating. Valenti came up with the concept that Hollywood itself should be the moral gatekeeper not anyone else. In a stroke of genius he conceived a “voluntary” ratings system: G indicating films suitable for all ages, PG for those requiring parental guidance, R for films off limits to unaccompanied youngsters, and X for anything goes. The MPAA would rate the films; the theaters would theoretically enforce the ratings. In fact the major studios would be able to determine the moral message put forward. Washington bought it hook line and sinker and eradicated local interference for once and for all. When Steven Spielberg got into a bit of hot water over Temple of Doom and Gremlins, the MPAA in deference to Spielberg’s influence came up with the rating PG-13. Paramount made sure that the latest Raiders franchise would received a PG rating instead of the rating R, which it probably deserved if the ratings system was even handed.
Spielberg himself went and lobbied Valenti.
Because the controlling members of the MPAA are the motion picture industry’s most powerful studios, which now are owned by some of the world’s largest media corporations, critics of the association often raise allegations of monopoly. They also cite the MPAA’s support for closed standards that hinder competition. Other critics, like filmmakers have suggested that films released by major studios (defacto owners of the MPAA) are given more deference in terms of ratings than films released by independents.
The MPAA began to to be a brea kwater against government to supposedly save the motion picture industry from government censorship by developing a system until its own control The members of the MPAA,using the ratings shield began to wield immense power in the hallways of Washington due to primarily the skill of Valenti. The majors have gained an increasingly concentrated share of the market, approaching a dangerously high percentage in the United States. This concentration and market control indicates the requisite monopoly of economic power has been stolen and placed in the hands of the members of the MPAA. This monopoly is further in grained due to the concentration of media ownership.
After serving as president of the MPAA for 38 years, Jack Valenti announced that he would step down in 2004. In September of that year, he was replaced by former Secretary of Agriculture Dan Glickman.During his tenure, Glickman focused on tax issues and anti-piracy efforts. He led lobbying efforts that resulted in $400 million in federal tax incentives for the movie industry, and also supported a law which created federal oversight of anti-piracy efforts. Glickman stepped down as president of the MPAA in 2010.
A year later after alot of thougth and deliberation, After a search which lasted over a year, the MPAA hired former U.S. Senator and Washigton Power house Chris Dodd to replace Glickman in March 2011.In his role as president, Dodd work initially on anti-piracy efforts, trade, and giving that Hollywood image a buff. He traveled to China in 2011 in an effort to encourage the Chinese government to both crack down on piracy and further open their film market….and we know what happen with that, In 2012, he spoke out in support of the passage of the Stop Online Piracy Act (SOPA) and PROTECT IP Act (PIPA). After the two bills were shelved, Dodd indicated that Hollywood might cut off campaign contributions to politicians who failed to support the movie industry in the future.
The major studios starting with Valenti have created a machine to implement it’s will in Washington. With the appointment of Dodd as MPAA chairman, the studios now have a lethal too at their disposal that can is well versed at growing power and keeping it. It’s sole goal is protect and maintain the interest of the major studios…..what is does not do is protect the interests of the industry as a whole.
It is time that a close look be given the MPAA and it’s value to the industry as a whole. It can no longer claim to speak for the industry, it has always and will always speak only to the needs of the six companies that control it. It is a monopoly and it is not your friend.
By the way the biggest fear Hollywood has now is that Netflix is becoming a monopoly, but they are careful for force judicial action becuase the light of fair trade practice just might shine on them.
Maybe it’s time the indepencent producer and the independent theatre as a sign of liberation abandon the ratings system and adopt their own. Myabe then the veneer can be lifted off the MPAA,
