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In the post-World War I period the production genius of such men as Samuel Goldwyn , Louis B. Mayer , Adolph Zukor, and Jesse L. Lasky, and the innovative talents of Cecil B. De Mille , Erich Von Stroheim , and Ernst Lubitsch were dominant. The year 1926 brought experiments in sound effects and music, and in 1927 spoken dialogue was successfully introduced in The Jazz Singer with Al Jolson. A year later the first all-talking picture, Lights of New York, was shown. With the talkies new directors achieved prominence—King Vidor, Joseph Von Sternberg , Rouben Mamoulian, Frank Capra, and John Ford . Sound films gave a tremendous boost to the careers of some silent actors but destroyed many whose voices were not suited to recording. Among the most celebrated stars of the new era were Clark Gable , Jean Harlow , Marlene Dietrich , Mae West , W. C. Fields , and the Marx Brothers .
Also in 1927 The Motion Picture Academy of Arts and Sciences was formed and began an annual awards ceremony. The prize, a figurine of a man grasping a star, was later dubbed Oscar. These awards did much to confer status upon the medium in that they asserted a definable quality of excellence analogous to literature and theater, other media in which awards are given for excellence. The Academy Awards also offered the bonus of gathering many stars in one place and thus attracted immediate and widespread attention. The star system blossomed: actors were recruited from the stage as well as trained in the Hollywood studios.
From the 1930s until the early 1950s, the studios sponsored a host of talented actors, foremost among whom were Ingrid Bergman , Joan Crawford , Bette Davis , Katharine Hepburn , Charles Laughton , Barbara Stanwyck, William Powell , Spencer Tracy , Humphrey Bogart , Leslie Howard, Gary Cooper , James Stewart , Cary Grant , Irene Dunne, Edward G. Robinson , Henry Fonda , Gregory Peck, James Cagney , Judy Garland , Bob Hope , James Mason , Fred Astaire , and Gene Kelly . Producers and directors such as David O. Selznick , Darryl F. Zanuck, Mervyn LeRoy, William Wyler, George Stevens, and Billy Wilder made significant contributions to cinematic art.
The medium had, after nickelodeon days, converted many legitimate theaters into movie houses. Later, during Hollywood's “golden age,” thousands of sumptuous movie palaces were erected all over the United States, and drive-in movie theaters became popular outside urban centers. Since their inception the movies have always been termed an industry, with good reason. In 1938 there were more than 80 million single admissions per week (65% of the population). To meet the huge box-office demand, more than 500 films were produced that year.
The industry in its heyday (1930-49) was managed by a number of omnipotent studios, including Metro-Goldwyn-Mayer, Warner Brothers, RKO, Paramount, Twentieth Century-Fox, and Universal. They produced endless cycles of films in imitation of a few successful original types. The range of themes included the criminal underworld, behind-the-scenes newspaper dramas, westerns, musicals, costume romances, character series such as the Charlie Chan films, prison stories, mysteries, comedies, and Broadway shows. Because of their enormous investments and gargantuan rewards (the film industry's gross income for 1946, its best year, was nearly $2 billion), the studios were encouraged to repeat conventionalized formula pictures.
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