Universal Pictures
On the 30th of April 1912, Carl Laemmle and eight partners incorporated the Universal Film Manufacturing Company in New York City. This date marks the official birth of what would become the oldest surviving film studio in the United States. The founders included Mark Dintenfass, Charles O. Baumann, Adam Kessel, Pat Powers, William Swanson, David Horsley, Robert H. Cochrane, and Jules Brulatour. Before this moment, Laemmle had watched a box office for hours, counting patrons to calculate daily takings. That observation led him to abandon dry goods and purchase his first nickelodeons within weeks.
The Edison-backed Motion Picture Patents Company, known as the "Edison Trust," had forced exhibitors to pay fees on all films they showed. Laemmle and other owners decided to avoid these payments by producing their own pictures. In June 1909, he started the Yankee Film Company with his brothers-in-law Abe Stern and Julius Stern. This entity evolved into the Independent Moving Pictures Company, or IMP, which established studios in Fort Lee, New Jersey. There, many early American motion picture industry films were produced during the early 20th century.
Laemmle broke from Edison's custom of refusing to give billing and screen credits to performers. By naming movie stars, he attracted leading players of the time. In 1910, he promoted Florence Lawrence, formerly known as "The Biograph Girl," and actor King Baggot. This may be the first instance of a studio using stars in its marketing. The new Universal studio became vertically integrated, linking production, distribution, and exhibition venues under one corporate entity.
By the end of 1912, the company shifted its production efforts to the Hollywood area. On the 15th of March 1915, Laemmle opened Universal City Studios on a 230-acre converted farm just over the Cahuenga Pass from Hollywood. It was the world's largest motion picture production facility at that time. Unlike other moguls, Laemmle opened his studio to tourists. Universal remained the largest studio in Hollywood for a decade while focusing on small-town audiences with inexpensive melodramas, westerns, and serials.
In 1928, Carl Laemmle Sr. made his son, Carl Jr., head of Universal Pictures as a 21st birthday present. The studio already had a reputation for nepotism, with reports suggesting 70 of Carl Sr.'s relatives were on the payroll. Among these relatives was future Academy Award-winning director William Wyler. Junior bought and built theaters and converted the studio to sound production. He also made several forays into high-quality productions like Show Boat (1929) and Broadway (1929).
Carl Jr. created a niche for the studio by beginning a series of horror films that extended into the 1940s. These became affectionately dubbed "Universal horror." Key titles included Dracula (1931), Frankenstein (1931), The Mummy (1932), and The Invisible Man (1933). Bela Lugosi starred in Dracula, while Boris Karloff appeared in Bride of the Frankenstein (1935). Other Laemmle productions of this period included Tay Garnett's Destination Unknown (1933) and John M. Stahl's Imitation of Life (1934).
The end for the Laemmles came with a lavish version of Show Boat released in 1936. This remake began production in late 1935 and featured stars from the Broadway stage version. Carl Jr.'s spending habits alarmed company stockholders. They would not allow production to start unless the Laemmles obtained a loan. Universal was forced to seek a $750,000 production loan from Standard Capital Corporation, pledging the family's controlling interest as collateral.
Standard called in the loan when the production went $300,000 over budget. Cash-strapped Universal could not pay, and Standard foreclosed on the 2nd of April 1936. Seized control marked the first time Universal had borrowed money for a production in its 26-year history. Although the 1936 Show Boat became a critical and financial success, it was not enough to save the Laemmles' involvement. They were removed from the company they had founded, with studio advertisements referring to "the new Universal." J. Cheever Cowdin took over as president and chairman.
In 1945, J. Arthur Rank bought into a four-way merger with Universal and International Pictures. The new combine, United World Pictures, failed and dissolved within one year. However, Rank and International remained interested in Universal, culminating in the studio's reorganization as Universal-International. The merger was announced on the 30th of July 1946. William Goetz, a founder of International along with Leo Spitz, became head of production at the renamed Universal-International Pictures.
Goetz decided to bring prestige to the new company. He stopped the studio's low-budget production of B movies and serials. He also curtailed Universal's horror and Arabian Nights cycles. The studio reduced output from its wartime average of fifty films per year to thirty-five films annually. Distribution and copyright control remained under the name of Universal Pictures Company Inc. Universal-International became responsible for distributing British productions like Great Expectations (1946) and Hamlet (1948).
By the late 1950s, the motion picture business changed again due to theater-chain breakups and the rise of television. A moribund Universal agreed to sell its 360-acre studio lot to MCA in 1958 for $11 million. The lot was renamed Revue Studios. MCA owned the studio lot but not Universal Pictures yet. They were increasingly influential on products. Clients like Doris Day, Lana Turner, Cary Grant, and director Alfred Hitchcock signed contracts with Universal.
The long-awaited takeover of Universal Pictures by MCA happened in mid-1962 as part of the MCA-Decca Records merger. In 1963, MCA formed Universal City Studios, merging motion pictures and television arms. With MCA in charge, Universal became a full-blown A-film movie studio offering slick commercial films. A studio tour subsidiary launched in 1964. Television production made up much of the output, with deals providing up to half of all prime time shows for several seasons.
Universal's most commercially successful film franchises include Fast & Furious, Jurassic Park, and Despicable Me. These series have driven massive revenue streams since the 1990s. The studio also holds individual films such as Jaws and E.T. the Extra-Terrestrial, both of which became the highest-grossing films of all time during their initial releases. In 1975, Jaws restored the company's fortunes after years of financial unpredictability.
In 1982, E.T. the Extra-Terrestrial grossed $439,251,124 domestically. It remains one of the top-grossing films worldwide at over $797 million. Jurassic Park (1993) followed with domestic earnings of $415,248,873. The franchise has continued to generate billions globally, including Jurassic World (2015), which earned $1,671,537,444 worldwide. Universal was the first studio to release three billion-dollar films in a single year, achieving this distinction in 2015 with Furious 7, Jurassic World, and Minions.
The Despicable Me franchise began in 2010 and has produced six films through 2024. Despicable Me 2 grossed $368,061,265 domestically while Despicable Me 4 reached $361,004,205. These animated features have become pillars of modern box office dominance alongside action series like Fast & Furious. The studio also distributes films from DreamWorks Animation, including How to Train Your Dragon and Trolls. In 2016, Universal acquired a minority stake in Amblin Partners, strengthening relationships with Steven Spielberg's production company.
Anxious to expand broadcast and cable presence, longtime MCA head Lew Wasserman located Japanese electronics manufacturer Matsushita Electric. They agreed to acquire MCA for $6.6 billion in 1990. On the 9th of December 1996, new owners dropped the MCA name; the company became Universal Studios Inc. MCA Music Entertainment Group was renamed Universal Music Group. Five years later, Matsushita sold an 80% stake to Canadian drinks distributor Seagram for $5.7 billion.
Seagram bought PolyGram from Philips in 1999 and other entertainment properties. Fluctuating profits characteristic of Hollywood were no substitute for reliable income streams previously held through DuPont shares. In late 2005, Viacom's Paramount Pictures acquired DreamWorks SKG after talks between GE and DreamWorks stalled. Stacey Snider left Universal in early 2006 to head up DreamWorks. She was replaced by vice chairman Marc Shmuger and Focus Features head David Linde.
On the 28th of April 2016, NBCUniversal announced a $3.8 billion deal to buy DreamWorks Animation. The deal completed on the 22nd of August 2016. Universal took over distribution starting in 2019 with How to Train Your Dragon: The Hidden World. Comcast eventually merged NBC and Universal to form NBCUniversal under its ownership. This structure made Universal Pictures the flagship studio of Universal Filmed Entertainment Group, which is part of NBCUniversal, a subsidiary of Comcast.
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Common questions
When was Universal Pictures founded and by whom?
Universal Pictures traces its origins to the 30th of April 1912 when Carl Laemmle and eight partners incorporated the Universal Film Manufacturing Company in New York City. The founders included Mark Dintenfass, Charles O. Baumann, Adam Kessel, Pat Powers, William Swanson, David Horsley, Robert H. Cochrane, and Jules Brulatour.
Where did Universal Pictures establish its first major studio facility?
On the 15th of March 1915, Carl Laemmle opened Universal City Studios on a 230-acre converted farm just over the Cahuenga Pass from Hollywood. This location became the world's largest motion picture production facility at that time and remains a central hub for the company.
What caused the end of the Laemmle family control over Universal Pictures?
The end for the Laemmles came with a lavish version of Show Boat released in 1936 which went $300,000 over budget. Standard Capital Corporation called in the loan on the 2nd of April 1936 after Universal could not pay, leading to foreclosure and the removal of the Laemmles from the company they had founded.
Which films established Universal Pictures as a leader in horror cinema during the 1930s?
Universal Pictures created a niche by beginning a series of horror films that extended into the 1940s including Dracula (1931), Frankenstein (1931), The Mummy (1932), and The Invisible Man (1933). Bela Lugosi starred in Dracula while Boris Karloff appeared in Bride of the Frankenstein (1935).
How did MCA acquire Universal Pictures and what changes followed?
The long-awaited takeover of Universal Pictures by MCA happened in mid-1962 as part of the MCA-Decca Records merger. In 1963, MCA formed Universal City Studios merging motion pictures and television arms to offer slick commercial films and launch a studio tour subsidiary in 1964.