WEBVTT - The Messy Origins of WarnerMedia

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<v Speaker 1>Welcome to Tech Stuff, a production from I Heart Radio.

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<v Speaker 1>Hey there, and welcome to tech Stuff. I'm your host,

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<v Speaker 1>Jonathan strick Lind. I'm an executive producer with I Heart

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<v Speaker 1>Radio and I love all things tech. And recently I

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<v Speaker 1>covered in a tech News episode that A T and

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<v Speaker 1>T is looking to jettison Warner Media and have it

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<v Speaker 1>merged with Discovery Communications. And in that episode, I talked

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<v Speaker 1>about how the Warner Media group of companies has a

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<v Speaker 1>pretty complicated lineage. Well, today I thought we'd start down

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<v Speaker 1>the road to talk about the various companies that make

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<v Speaker 1>up Warner Media kind of unravel at all. And this

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<v Speaker 1>is gonna be a heck of a story because it

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<v Speaker 1>includes several influential media companies that had their own distinct

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<v Speaker 1>histories before coalescing into Warner Media. But it also includes

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<v Speaker 1>companies that are not media companies at all, like funeral

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<v Speaker 1>homes for real. Now, when I say complicated, I'm not kidding.

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<v Speaker 1>Our story includes a window washing company, parking company, and

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<v Speaker 1>online service provider company, UM, few magazine publishers and more.

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<v Speaker 1>There are mergers, there are acquisitions, there are spinoffs, there's

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<v Speaker 1>family betrayal, and lots of other stuff. So where the

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<v Speaker 1>heck do I get started? Well, I suppose I should

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<v Speaker 1>talk about the core components and then work to the

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<v Speaker 1>point where they all come together. And I could start

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<v Speaker 1>pretty much anywhere, because there's so many different pieces to

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<v Speaker 1>the story, But I'm going to begin with Time because

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<v Speaker 1>it's on my side, Yes it is. Henry Loose and

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<v Speaker 1>Britton Haddn't had a lot in common. They both attended

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<v Speaker 1>Yale University, they both worked as reporters for the Baltimore News,

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<v Speaker 1>and both of them were in their early twenties back

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<v Speaker 1>in nineteen twenty two, and they also both wanted to

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<v Speaker 1>try something that was a new idea. Newspapers were a thing, obviously,

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<v Speaker 1>but Luce and Haddn't had the idea for a news magazine.

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<v Speaker 1>They decided to try and create one because no one

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<v Speaker 1>had really done it before, and they raised more than

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<v Speaker 1>eighty thousand dollars, which was a princely sum in nineteen

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<v Speaker 1>twenty two, and they quit their jobs to found a

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<v Speaker 1>company called Time Incorporated and a magazine called Time. It

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<v Speaker 1>would publish weekly starting in March of nineteen twenty three.

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<v Speaker 1>Luce served as the business manager for the young publishing

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<v Speaker 1>company and Hadden was editor in chief, and together they

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<v Speaker 1>found success with this weekly magazine format. Seven years later,

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<v Speaker 1>haddn't passed away suddenly after an illness had developed into sepsis.

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<v Speaker 1>Loose pressed on becoming editor in chief and launching other

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<v Speaker 1>magazines like Fortune, which launched just as the Great Depression

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<v Speaker 1>was settling in. So that's kind of ironic timing. He

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<v Speaker 1>also published Life, which I think already existed as a

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<v Speaker 1>as a different kind of publication, but he essentially acquired

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<v Speaker 1>it and then relaunched it under a new format, effectively

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<v Speaker 1>making a new magazine, and then much much later magazines

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<v Speaker 1>like Sports Illustrated. He also, according to some accounts, essentially

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<v Speaker 1>erased Hadden's contributions to the company time Inc. Was becoming

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<v Speaker 1>a giant publisher. Moreover, Loose oversaw the launch of other

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<v Speaker 1>forms of media content. In nineteen thirty one, the company

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<v Speaker 1>sponsored a radio news series that aired on CBS Radio,

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<v Speaker 1>and in nineteen thirty five the company expanded this to newsreels,

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<v Speaker 1>which were these things that we play in movie theaters

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<v Speaker 1>between pictures. So instead of you know, just watching a movie,

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<v Speaker 1>you might actually see a ten or fifteen that segment

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<v Speaker 1>about the latest news or kind of a documentary or

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<v Speaker 1>a highlight of something. The newsreels were slightly different from

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<v Speaker 1>others at the time. They had a longer format and

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<v Speaker 1>the inclusion of stuff like re enactments. The concept was

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<v Speaker 1>to make a newsreel that was the cinematic sibling of

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<v Speaker 1>Time magazine or Life Magazine, something that was akin to those.

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<v Speaker 1>The March of Time series would end up receiving several awards,

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<v Speaker 1>including an Honorary Academy Award. This made Time Incorporated a

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<v Speaker 1>multimedia company, publishing and newsreels and radio. It was one

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<v Speaker 1>of the earliest examples of such a thing. Luce was

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<v Speaker 1>editor in chief until nineteen sixty four, and he passed

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<v Speaker 1>away just three years after that. But the publisher, the

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<v Speaker 1>company that is continued to grow over the years, and

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<v Speaker 1>by the late nineteen eighties it was poised to play

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<v Speaker 1>a bigger part in our story. But now we're going

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<v Speaker 1>to switch over to another company. Because really, when you

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<v Speaker 1>get to it, Times story is really one of publishing

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<v Speaker 1>and growing a company over time. Uh. It doesn't have

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<v Speaker 1>a whole lot to do with with tech, apart from

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<v Speaker 1>the fact that obviously technological advancements can mean smoothing out

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<v Speaker 1>the processes of a company's operations like from printing to distribution.

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<v Speaker 1>But I don't really think that that's worthy of us

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<v Speaker 1>really diving into here. So we're gonna switch over to

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<v Speaker 1>Warner Brothers Entertainment Incorporated, or the old w B. Now,

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<v Speaker 1>the Warner family immigrated to the United States from Poland

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<v Speaker 1>in the early eighties, and in fact, three of the

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<v Speaker 1>four Warner brothers referenced in the name of the company

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<v Speaker 1>We're born in Poland, those being Harry, who was the eldest,

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<v Speaker 1>and then Albert and Sam. Now some sources ice I've

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<v Speaker 1>seen suggest that Albert and Sam were born in North America.

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<v Speaker 1>But a to a guy who was hired by Warner

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<v Speaker 1>Brothers to come in and do research on this kind

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<v Speaker 1>of stuff, that wasn't the case. Jack, the youngest of

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<v Speaker 1>the four Warner brothers, was born in North America. He

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<v Speaker 1>was born in Canada. And they also had other siblings

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<v Speaker 1>as well. This was a big family. I think there

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<v Speaker 1>were nine of them total, so that wasn't all of them,

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<v Speaker 1>but those were the four brothers of the Warner Brothers fame. Now,

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<v Speaker 1>this family wasn't exactly impoverished, but it was a lot

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<v Speaker 1>of work to make ends meet. So the brothers worked

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<v Speaker 1>in all sorts of lines of work in the Midwest.

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<v Speaker 1>They worked in the meat industry, they worked at bowling alleys,

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<v Speaker 1>They did all sorts of stuff, and they were all

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<v Speaker 1>looking for ways to be a success, and gradually they

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<v Speaker 1>built up a little money. In nineteen o three, the

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<v Speaker 1>four brothers rented a vacant store in Newcastle, Pennsylvania, and

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<v Speaker 1>they wanted to turn it into a film exchange in

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<v Speaker 1>a movie theater that they had also acquired a film

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<v Speaker 1>projector now obvious sleeve. This was in the extremely early

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<v Speaker 1>days of cinema. The brothers mainly focused on getting hold

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<v Speaker 1>of films and making them available to other theaters in

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<v Speaker 1>the region, thus the film exchange business. They were kind

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<v Speaker 1>of a go between between the movie studios and the

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<v Speaker 1>movie theaters. And it turned out that motion pictures weren't

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<v Speaker 1>just a fad. Also turned out that it was a

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<v Speaker 1>really shady business. There were a lot of um criminal

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<v Speaker 1>types who got interested in stuff like film exchanges. I

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<v Speaker 1>have no idea how involved the Warners were, if at all,

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<v Speaker 1>in that side of life, but it was definitely a

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<v Speaker 1>thing that was going on. Not turned out that since

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<v Speaker 1>motion pictures were so popular, you know, I feel pretty

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<v Speaker 1>confident saying motion pictures were a success, you know, from

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<v Speaker 1>the perspective of one the brothers business was also successful,

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<v Speaker 1>and they began to, you know, use the money that

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<v Speaker 1>they made to open more theaters and expand by n

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<v Speaker 1>they decided that they would branch out from the business

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<v Speaker 1>of exhibiting films and get into the business of making them,

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<v Speaker 1>because one of the downsides of this is that you

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<v Speaker 1>couldn't guarantee the quality of the movies that were being

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<v Speaker 1>sent to you, and a lot of the movies were

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<v Speaker 1>on the not so great side, like either they were

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<v Speaker 1>just poorly made or they frequently involved material that was

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<v Speaker 1>considered risk a or worse. So movies had a really

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<v Speaker 1>bad reputation in the early days, and the brothers kind

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<v Speaker 1>of wanted to have more control over the whole process,

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<v Speaker 1>so they decided to create their own movie studio. Jack

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<v Speaker 1>Warner would be in charge of movie production. He oversaw

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<v Speaker 1>the film operations side of things. Harry handled all the

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<v Speaker 1>business operations for the company. He was effectively the head

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<v Speaker 1>of Warner Brothers, and Sam was in charge of securing

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<v Speaker 1>and maintaining technical equipment, and Alb would work with other

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<v Speaker 1>theaters to handle distribution of the Warner Films. The four

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<v Speaker 1>opened up Warner Brothers Studio in Hollywood, California, in nineteen eighteen,

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<v Speaker 1>originally on Sunset Boulevard, which at the time was considered

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<v Speaker 1>a seedy part of of Hollywood. Um, I don't know

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<v Speaker 1>if it still is. I actually kind of like Sunset Boulevard,

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<v Speaker 1>but maybe it's because I'm a seedy guy. Anyway. They

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<v Speaker 1>incorporated as Warner Brothers Pictures in nineteen twenty three. By

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<v Speaker 1>that time, they had already produced several films, and the

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<v Speaker 1>first really big success for them was a series of pictures,

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<v Speaker 1>that is, movies that started a four legged actor that

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<v Speaker 1>being rentin Tin. Uh. That's a dog for those of

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<v Speaker 1>you who have never seen a rentin Tin picture. And

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<v Speaker 1>the dog was learning like a thousand bucks a week,

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<v Speaker 1>which was, you know, quite the princely pooch. I would

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<v Speaker 1>imagine that's a lot of money back in those days,

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<v Speaker 1>not a not a small shake of these days. Warner

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<v Speaker 1>Brothers was an independent studio back then and was facing

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<v Speaker 1>off against three much more established companies. There was Paramount,

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<v Speaker 1>there was MGM, and there was a company called First National.

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<v Speaker 1>Warner Brothers was scrappy compared to those three and Sam

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<v Speaker 1>had a vision for what could help set the studio

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<v Speaker 1>apart and change the industry forever. See this was again

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<v Speaker 1>the era of the silent film. Movies would play in

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<v Speaker 1>movie houses and typically you would have like a house

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<v Speaker 1>musician who would play along with the film on on

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<v Speaker 1>an oregon or something, and all dialogue would be represented

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<v Speaker 1>in little interstitial cards that would pop up, which created

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<v Speaker 1>a certain interesting style of cinema, like you could make

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<v Speaker 1>really compelling movies this way, but it also clearly limited

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<v Speaker 1>the actors range. Sam wanted to synchronize sound with the

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<v Speaker 1>images on screen, and he wanted the company to pioneer

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<v Speaker 1>the technologies and the installations that would allow for talking pictures.

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<v Speaker 1>He initially met with some resistance from Harry, who was like,

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<v Speaker 1>why the heck do we need to hear the actors talk?

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<v Speaker 1>But the studio hit a bit of a rough patch,

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<v Speaker 1>and maybe in desperation, Harry ended up giving Sam the

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<v Speaker 1>green light. Warner Brothers then purchased a company that had

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<v Speaker 1>spun off from Western Electric. This company was called the

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<v Speaker 1>Vitograph Company. The Vitogram system was a film sound recording system,

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<v Speaker 1>but it wasn't recording sound to film the way we

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<v Speaker 1>do it today. Instead, this system used sixteen inch discs

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<v Speaker 1>like records, they had a groove recorded in them, representing

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<v Speaker 1>a soundtrack. So this is like a vinyl album, and

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<v Speaker 1>it included everything like music and sound effects and eventually

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<v Speaker 1>dialogue and vocals, though originally Harry did not want that included.

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<v Speaker 1>He just wanted, you know, music and sound effects on there. Uh.

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<v Speaker 1>A side of a desk would run for about eleven

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<v Speaker 1>minutes when played back at an RPM of thirty three

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<v Speaker 1>and a third. Eleven minutes was about the same amount

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<v Speaker 1>of time it took to project through a thousand feet

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<v Speaker 1>of film. And you know, in those early days you

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<v Speaker 1>would end up just having about a thousand feet per

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<v Speaker 1>real of film, and so one side of the record

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<v Speaker 1>would typically have a groove on it, the other side

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<v Speaker 1>would be blank, and each record would go with a

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<v Speaker 1>single reel of film, and you were just supposed to

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<v Speaker 1>keep them two of them together. So with a setup,

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<v Speaker 1>you would have a projectionist who would use a special

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<v Speaker 1>piece of equipment that was part projector part record turntable,

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<v Speaker 1>and they would feed the film into the projector they

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<v Speaker 1>would set the little needle or stylus of the record

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<v Speaker 1>player on the beginning of the recording, which from what

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<v Speaker 1>I understand, was actually at the center of the disk.

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<v Speaker 1>And you know most records, you know, you put the

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<v Speaker 1>needle on the outside of the record and it follows

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<v Speaker 1>the groove gradually all the way to the inside. Apparently,

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<v Speaker 1>with the vitaphone system, you would put the needle at

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<v Speaker 1>the center of it, and because the way that the

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<v Speaker 1>record turned and the way the groove was laid out,

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<v Speaker 1>it would actually go outward to the outer edge starting

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<v Speaker 1>the projector would mean that the film and soundtrack playback

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<v Speaker 1>would be synchronized at least, you know, theoretically. The first

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<v Speaker 1>Warner Brothers film using a vitophone soundtrack was Don Juan,

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<v Speaker 1>but the piece had already been filmed. The soundtrack included

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<v Speaker 1>the score for the movie and some sound effects, but

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<v Speaker 1>no dialogue, so Don Juan was still largely a silent film.

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<v Speaker 1>The first talkie was The Jazz Singer, a film with

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<v Speaker 1>a recorded sound all the way through, so there was

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<v Speaker 1>dialogue and singing within the film itself. Now I'm going

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<v Speaker 1>to leave it to film historians to talk about the movie,

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<v Speaker 1>which has elements in it that I think are, you know,

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<v Speaker 1>to put it charitably, challenging, but from a technical perspective,

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<v Speaker 1>it was marking a new era, and this was also

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<v Speaker 1>an era that would go without it's early champion. Sam Warner,

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<v Speaker 1>who had pushed so hard to incorporate sound into movies,

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<v Speaker 1>died the night before the premiere of The Jazz Singer.

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<v Speaker 1>The narrative goes that he worked himself to death, though

0:14:14.679 --> 0:14:18.480
<v Speaker 1>author David Thompson suggests that perhaps there were some other

0:14:18.640 --> 0:14:22.600
<v Speaker 1>underlying health conditions that contributed to his early demise. But

0:14:22.680 --> 0:14:26.240
<v Speaker 1>now the Warner Brothers were three. Now Warner Brothers, the

0:14:26.320 --> 0:14:30.160
<v Speaker 1>company would stick with vitaphone for a few years, but

0:14:30.520 --> 0:14:33.080
<v Speaker 1>even when The Jazz Singer came out, the writing was

0:14:33.120 --> 0:14:36.200
<v Speaker 1>already on the wall. The future of sound on film

0:14:36.480 --> 0:14:40.160
<v Speaker 1>wasn't with separate recorded discs, but a methodology that would

0:14:40.160 --> 0:14:44.920
<v Speaker 1>allow filmmakers to actually record sound directly onto film itself.

0:14:45.320 --> 0:14:48.240
<v Speaker 1>I've covered how this works in previous episodes of Tech Stuff,

0:14:48.600 --> 0:14:50.920
<v Speaker 1>so I'm not going to go into it here. But

0:14:51.040 --> 0:14:53.800
<v Speaker 1>what it really meant for Warner Brothers was that the

0:14:53.840 --> 0:14:56.840
<v Speaker 1>company would eventually have to come around to adopting the

0:14:56.920 --> 0:15:01.720
<v Speaker 1>industry standard and abandoning the vitaphone of coach. The Jazz

0:15:01.720 --> 0:15:04.880
<v Speaker 1>Singer was a huge hit for Warner Brothers, and the

0:15:04.920 --> 0:15:08.520
<v Speaker 1>company was able to afford new digs, so they relocated

0:15:08.640 --> 0:15:12.280
<v Speaker 1>off of Sunset Boulevard and they purchased land to build

0:15:12.280 --> 0:15:15.960
<v Speaker 1>a studio in Burbank, California, setting out a whole new

0:15:16.000 --> 0:15:19.640
<v Speaker 1>studio there, and the company also acquired the Stanley Company

0:15:19.680 --> 0:15:23.000
<v Speaker 1>of America, a business that owned more than two hundred

0:15:23.000 --> 0:15:26.160
<v Speaker 1>movie theaters across the United States. This gave the Warner

0:15:26.160 --> 0:15:30.040
<v Speaker 1>Brothers a distribution channel for the company's movies, and it

0:15:30.080 --> 0:15:32.000
<v Speaker 1>would also be one of the big elements that would

0:15:32.000 --> 0:15:34.280
<v Speaker 1>prompt the US government to take a closer look at

0:15:34.280 --> 0:15:37.160
<v Speaker 1>the film industry. So to be clear, I should really

0:15:37.160 --> 0:15:40.280
<v Speaker 1>point out this was something that every major movie studio

0:15:40.360 --> 0:15:43.840
<v Speaker 1>was doing. It was pretty much common practice for companies

0:15:43.880 --> 0:15:47.520
<v Speaker 1>like MGM and Paramount to have their own movie houses

0:15:47.760 --> 0:15:51.120
<v Speaker 1>across the US, and it created a pretty rough environment

0:15:51.160 --> 0:15:55.760
<v Speaker 1>for independent theater owners. In the nineteen thirties, Warner Brothers

0:15:55.800 --> 0:15:59.160
<v Speaker 1>began to produce cartoons for movie theaters, and that's when

0:15:59.160 --> 0:16:01.920
<v Speaker 1>we got the Loon It Tunes, characters like Bugs, Bunny,

0:16:02.680 --> 0:16:07.160
<v Speaker 1>you know, they rabbit in space, Jam, Filthy Young People.

0:16:08.160 --> 0:16:11.080
<v Speaker 1>It's also when Warner Brothers turned to producing a lot

0:16:11.120 --> 0:16:16.080
<v Speaker 1>of gangster movies, like a lot of them. These were

0:16:16.120 --> 0:16:19.680
<v Speaker 1>the studio days when companies would sign directors and stars

0:16:19.680 --> 0:16:23.520
<v Speaker 1>to long term contracts which made them exclusive talent for

0:16:23.560 --> 0:16:26.480
<v Speaker 1>that studio. Same was true for film cruise too, so

0:16:27.120 --> 0:16:29.960
<v Speaker 1>people would go in day after day working with the

0:16:30.040 --> 0:16:33.520
<v Speaker 1>same group of folks. Sometimes from one picture to the other.

0:16:33.560 --> 0:16:35.200
<v Speaker 1>You might not even really be able to tell what

0:16:35.320 --> 0:16:38.240
<v Speaker 1>movie you're working on, just because you're always around the

0:16:38.280 --> 0:16:41.680
<v Speaker 1>same people in the same studios. James Cagney became the

0:16:41.680 --> 0:16:44.760
<v Speaker 1>top star for the company, and Humphrey Bogart, who was

0:16:44.960 --> 0:16:47.840
<v Speaker 1>on the company payroll, was held back because Harry Warner

0:16:48.040 --> 0:16:51.920
<v Speaker 1>wasn't convinced that Bogart was star material. Talk about a

0:16:53.360 --> 0:16:58.080
<v Speaker 1>a wrong take anyway. Warner Brothers also acquired another company

0:16:58.240 --> 0:17:03.239
<v Speaker 1>called Cosmopolitan Films, which was formerly owned by the newspaper

0:17:03.320 --> 0:17:07.600
<v Speaker 1>giant William Randolph Hurst, who perhaps has the tackiest home

0:17:07.640 --> 0:17:11.679
<v Speaker 1>I've ever seen. The Hearst Castle is just a monument

0:17:11.760 --> 0:17:16.720
<v Speaker 1>to gaudiness. Anyway, the company kept on growing. In nine four,

0:17:16.920 --> 0:17:20.600
<v Speaker 1>most movie studios, including Warner Brothers, signed onto the Motion

0:17:20.680 --> 0:17:25.040
<v Speaker 1>Picture Production Code also known as the Haze Code, after

0:17:25.080 --> 0:17:28.440
<v Speaker 1>the then president of the Motion Picture producers and distributors

0:17:28.440 --> 0:17:32.359
<v Speaker 1>of America Will h Code. Now I'm just kidding. It

0:17:32.440 --> 0:17:34.639
<v Speaker 1>was Will H. Hayes. That was his name, and the

0:17:34.720 --> 0:17:38.840
<v Speaker 1>Haze Code was meant to perform triage on Hollywood's image.

0:17:39.040 --> 0:17:42.200
<v Speaker 1>Like I said, the movie business was seen as something

0:17:42.200 --> 0:17:45.000
<v Speaker 1>of a seedy thing, especially because around this time there

0:17:45.000 --> 0:17:51.040
<v Speaker 1>were some really nasty scandals that were surrounding Hollywood. Uh,

0:17:51.119 --> 0:17:54.199
<v Speaker 1>scandals that involved stuff like sex and death. It was

0:17:54.320 --> 0:17:58.280
<v Speaker 1>not a not a good thing too to have if

0:17:58.280 --> 0:18:02.800
<v Speaker 1>you're trying to put forth the the aura of respectability.

0:18:02.880 --> 0:18:05.400
<v Speaker 1>So the movie business was no stranger to scandal, both

0:18:05.440 --> 0:18:08.280
<v Speaker 1>on and off screen, and the US government was kind

0:18:08.280 --> 0:18:10.760
<v Speaker 1>of starting to think about ways that they might censor

0:18:10.920 --> 0:18:13.800
<v Speaker 1>the film industry. So rather than have the government come

0:18:13.800 --> 0:18:16.359
<v Speaker 1>in and regulate the movies, the goal was to create

0:18:16.400 --> 0:18:20.000
<v Speaker 1>a code of standards of what was and wasn't suitable

0:18:20.000 --> 0:18:23.320
<v Speaker 1>to show in movie theaters and head off the US

0:18:23.400 --> 0:18:26.399
<v Speaker 1>government at the past and have movie studios sign on

0:18:26.600 --> 0:18:30.719
<v Speaker 1>to you know, produce films under this code. For the record,

0:18:30.880 --> 0:18:33.639
<v Speaker 1>this is something that has happened numerous times in American

0:18:33.720 --> 0:18:38.199
<v Speaker 1>history with industries that range from comic books to film

0:18:38.400 --> 0:18:41.359
<v Speaker 1>to video games. We've seen it happen again and again.

0:18:41.960 --> 0:18:47.000
<v Speaker 1>The Haze Code was extremely restrictive. Movie studios weren't forced

0:18:47.200 --> 0:18:49.879
<v Speaker 1>to comply to the Haze Code, but generally speaking, it

0:18:49.920 --> 0:18:51.560
<v Speaker 1>was best to play the game if you wanted your

0:18:51.600 --> 0:18:55.639
<v Speaker 1>films to get played in theaters. Warner Brothers scrapped the

0:18:55.680 --> 0:18:58.720
<v Speaker 1>gangster film genre pretty much, as it would be pretty

0:18:58.800 --> 0:19:01.359
<v Speaker 1>challenging to make a compel in gangster movie while still

0:19:01.359 --> 0:19:04.560
<v Speaker 1>holding true to the restrictions of the Haze Code. And

0:19:05.160 --> 0:19:07.680
<v Speaker 1>that's where we're going to leave off for our first break.

0:19:07.720 --> 0:19:09.919
<v Speaker 1>When we come back, we're going to skip forward a

0:19:09.920 --> 0:19:12.119
<v Speaker 1>little bit in time to talk about some other changes

0:19:12.119 --> 0:19:15.520
<v Speaker 1>at Warner Brothers that lead up to the birth of

0:19:15.560 --> 0:19:18.240
<v Speaker 1>Warner Media. We still got a long way to go,

0:19:18.400 --> 0:19:20.880
<v Speaker 1>so let's take a quick break and we'll be right back.

0:19:28.640 --> 0:19:32.200
<v Speaker 1>So the Haze Code would hold true in Hollywood until

0:19:32.240 --> 0:19:35.680
<v Speaker 1>the late nineteen sixties. Warner Brothers continue to make lots

0:19:35.680 --> 0:19:39.200
<v Speaker 1>of movies and cartoons in that time. And this isn't

0:19:39.200 --> 0:19:41.280
<v Speaker 1>a pop culture podcast, so I'm not going to go

0:19:41.320 --> 0:19:45.080
<v Speaker 1>into all of them here. It would just be, you know, ridiculous.

0:19:45.560 --> 0:19:48.359
<v Speaker 1>But Warner Brothers continued to make films in the nineteen

0:19:48.400 --> 0:19:51.639
<v Speaker 1>forties during World War Two. They didn't stop, and after

0:19:51.680 --> 0:19:54.960
<v Speaker 1>the war, television, which had been development for decades but

0:19:55.080 --> 0:19:59.480
<v Speaker 1>had largely been paused during the war, debuted in earnest.

0:20:00.200 --> 0:20:02.919
<v Speaker 1>The movie industry as a whole was not too happy

0:20:02.960 --> 0:20:06.080
<v Speaker 1>about television. They were fearing that people would purchase a

0:20:06.160 --> 0:20:09.160
<v Speaker 1>TV set and then just elect to stay home rather

0:20:09.200 --> 0:20:13.080
<v Speaker 1>than head out for a night at the movies. Now, gradually, studios,

0:20:13.080 --> 0:20:17.719
<v Speaker 1>including Warner Brothers, would expand their operations to include TV productions,

0:20:17.720 --> 0:20:20.840
<v Speaker 1>but at first it was as if you had like

0:20:20.920 --> 0:20:24.879
<v Speaker 1>one giant predator suddenly spotting a totally different predator in

0:20:24.960 --> 0:20:27.800
<v Speaker 1>its home turf and things get real tense. That was

0:20:27.880 --> 0:20:30.720
<v Speaker 1>kind of how it was between movie studios and television

0:20:30.760 --> 0:20:34.640
<v Speaker 1>at the time. In the late nineteen fifties, Warners established

0:20:34.640 --> 0:20:38.400
<v Speaker 1>a subsidiary company called Warner Brothers Records, later known as

0:20:38.440 --> 0:20:42.000
<v Speaker 1>just Warner Records and then later still Warner Music Group.

0:20:42.560 --> 0:20:45.760
<v Speaker 1>This was the recorded music division of the movie studio

0:20:45.800 --> 0:20:49.640
<v Speaker 1>business and largely focused on producing recordings of the various

0:20:49.680 --> 0:20:54.000
<v Speaker 1>soundtracks to Warner Brothers movies, as well as securing their talent.

0:20:54.400 --> 0:20:57.600
<v Speaker 1>One of the things that Warner Brothers executives were upset

0:20:57.600 --> 0:21:01.000
<v Speaker 1>about was that Occasionally, an actor in one of their

0:21:01.000 --> 0:21:04.080
<v Speaker 1>films would record a song and it would get released

0:21:04.119 --> 0:21:07.200
<v Speaker 1>on some other record label, and that meant that Warner

0:21:07.200 --> 0:21:10.879
<v Speaker 1>Brothers suddenly didn't have total control over the talent that

0:21:10.960 --> 0:21:15.040
<v Speaker 1>was signed to them, and they hated that. They wanted

0:21:15.080 --> 0:21:18.040
<v Speaker 1>to make sure that if if that person who was

0:21:18.080 --> 0:21:21.040
<v Speaker 1>signed to a contract was gonna make money by gully,

0:21:21.119 --> 0:21:23.159
<v Speaker 1>Warner Brothers was gonna get a cut of it. So

0:21:23.200 --> 0:21:26.640
<v Speaker 1>that was really the reason why they created a records division.

0:21:27.560 --> 0:21:30.280
<v Speaker 1>Also in the nineteen fifties, Warner Brothers was forced to

0:21:30.320 --> 0:21:34.280
<v Speaker 1>divest itself of its theater chains. This was the consequence

0:21:34.359 --> 0:21:37.199
<v Speaker 1>of a legal battle between the US government and the

0:21:37.240 --> 0:21:40.239
<v Speaker 1>film industry in the United States, and the issue at

0:21:40.240 --> 0:21:43.280
<v Speaker 1>the heart of all this was anti competitiveness. So movie

0:21:43.280 --> 0:21:47.320
<v Speaker 1>studios had been buying up all aspects related to movie production,

0:21:47.480 --> 0:21:50.679
<v Speaker 1>from the actual companies that would process film to the

0:21:50.760 --> 0:21:54.320
<v Speaker 1>content creation side, you know, the actual movie studios, to

0:21:54.720 --> 0:22:00.720
<v Speaker 1>the movie theater side, so everything from production, processing and distribution.

0:22:01.280 --> 0:22:04.560
<v Speaker 1>This was not necessarily great for the average consumer who

0:22:04.640 --> 0:22:06.760
<v Speaker 1>might find themselves with no way to see the latest

0:22:06.840 --> 0:22:10.520
<v Speaker 1>pictures from movie studio A because the one theater in

0:22:10.560 --> 0:22:13.280
<v Speaker 1>their town happened to be owned by movie studio B

0:22:14.359 --> 0:22:16.639
<v Speaker 1>and for actors and directors, there was the issue of

0:22:16.640 --> 0:22:20.879
<v Speaker 1>getting locked into contracts that made them exclusive talent, and

0:22:20.920 --> 0:22:22.879
<v Speaker 1>it meant that the actors wouldn't really have much of

0:22:22.880 --> 0:22:26.120
<v Speaker 1>a say about what projects they pursued. And in addition,

0:22:26.320 --> 0:22:29.720
<v Speaker 1>studios would sometimes barter with other studios and use talent

0:22:29.800 --> 0:22:33.080
<v Speaker 1>as a kind of you know, bargaining chip. It wasn't

0:22:33.119 --> 0:22:36.360
<v Speaker 1>super cool. Uh. There were a lot of other considerations

0:22:36.359 --> 0:22:39.040
<v Speaker 1>too that would into this, but ultimately the important point

0:22:39.080 --> 0:22:41.480
<v Speaker 1>is that the big movie studios all had to spin

0:22:41.520 --> 0:22:44.720
<v Speaker 1>off their movie theater holdings. They couldn't keep them any longer.

0:22:44.720 --> 0:22:47.520
<v Speaker 1>They also weren't allowed to have talent agencies and stuff

0:22:47.560 --> 0:22:50.439
<v Speaker 1>like that, and so this was sort of the beginning

0:22:50.440 --> 0:22:53.320
<v Speaker 1>of the end of the big studio era, although studio

0:22:53.359 --> 0:22:56.000
<v Speaker 1>contracts would still be kind of a thing for a bit.

0:22:56.840 --> 0:22:59.919
<v Speaker 1>And yet another development in the nineteen fifties, Jack more

0:23:00.080 --> 0:23:02.199
<v Speaker 1>Or saw an opportunity, but it would mean doing some

0:23:02.320 --> 0:23:06.280
<v Speaker 1>underhanded stuff. So you see, Harry Warner was technically in

0:23:06.359 --> 0:23:09.480
<v Speaker 1>charge of the company, but Jack Warner was the guy

0:23:09.520 --> 0:23:12.040
<v Speaker 1>who was kind of making stuff happen on the studio level.

0:23:12.400 --> 0:23:16.360
<v Speaker 1>Also not very well liked Mr Jack Warner. A lot

0:23:16.359 --> 0:23:21.439
<v Speaker 1>of his stars positively hated the man. Jack wanted to

0:23:21.760 --> 0:23:25.439
<v Speaker 1>lead the company, but Harry essentially said, over my dead body.

0:23:25.600 --> 0:23:30.520
<v Speaker 1>So Jack one day approaches his brothers, Harry and Albert,

0:23:31.000 --> 0:23:33.160
<v Speaker 1>and he essentially says, Hey, you know what we're all

0:23:33.160 --> 0:23:36.400
<v Speaker 1>getting on in years, we're all getting older. We should

0:23:36.440 --> 0:23:39.880
<v Speaker 1>sell our company off. We had a great run. Let's

0:23:39.880 --> 0:23:42.280
<v Speaker 1>sell it off while we're still on top. We'll make

0:23:42.320 --> 0:23:45.040
<v Speaker 1>a ton of money and we can retire in comfort.

0:23:45.560 --> 0:23:48.360
<v Speaker 1>And the elder brothers agreed, and the studio was quote

0:23:48.440 --> 0:23:51.480
<v Speaker 1>unquote sold but low and behold. A couple of weeks later,

0:23:51.600 --> 0:23:54.360
<v Speaker 1>Jack Warner is revealed as the new president of this

0:23:54.480 --> 0:23:58.600
<v Speaker 1>new Warner Brothers company, which was kind of only new

0:23:58.720 --> 0:24:02.879
<v Speaker 1>on paper. Really, Harry would not last very long. He

0:24:02.920 --> 0:24:05.840
<v Speaker 1>actually died not too long after this happened. And of

0:24:05.840 --> 0:24:09.640
<v Speaker 1>course that narrative is that Jack Warner broke his brother's

0:24:09.680 --> 0:24:13.320
<v Speaker 1>heart and that's what killed Harry Warner. There was definitely

0:24:13.359 --> 0:24:16.720
<v Speaker 1>a schism in the Warner family at this point. This

0:24:16.800 --> 0:24:19.320
<v Speaker 1>was also around the same time that Warner actually created

0:24:19.400 --> 0:24:23.840
<v Speaker 1>its television division called Warner Brothers Television Studios in nineteen

0:24:23.880 --> 0:24:28.080
<v Speaker 1>fifty five, Jack Warner's son in law, William t Or,

0:24:28.240 --> 0:24:31.520
<v Speaker 1>would head up that division. One of their early major

0:24:31.560 --> 0:24:36.359
<v Speaker 1>productions was the first one hour television Western series called Cheyenne.

0:24:37.000 --> 0:24:40.000
<v Speaker 1>The studio would go on to produce lots of other

0:24:40.080 --> 0:24:44.440
<v Speaker 1>shows like Maverick is another great example. In the nineteen sixties,

0:24:45.000 --> 0:24:48.840
<v Speaker 1>the studio began to produce a bunch of movie musicals.

0:24:48.880 --> 0:24:53.320
<v Speaker 1>These were lavish, expensive productions, and they helped convince people

0:24:53.359 --> 0:24:56.240
<v Speaker 1>to you know, leave their homes, leave their televisions behind

0:24:56.280 --> 0:24:58.520
<v Speaker 1>to see these films that they could only see in theaters.

0:24:58.960 --> 0:25:02.720
<v Speaker 1>So they included movies like The Music Man, uh Anti Name,

0:25:03.400 --> 0:25:07.480
<v Speaker 1>and Gypsy. These were all adaptations of Broadway musicals. But

0:25:07.560 --> 0:25:10.600
<v Speaker 1>it was My Fair Lady, which debuted in nineteen sixty four,

0:25:10.720 --> 0:25:14.520
<v Speaker 1>that proved to be a truly enormous success, as did

0:25:14.560 --> 0:25:18.520
<v Speaker 1>the movie's soundtrack, which really helped establish Warner Brothers Records.

0:25:19.040 --> 0:25:21.240
<v Speaker 1>That will come back to Warner Brothers Records a little

0:25:21.240 --> 0:25:24.400
<v Speaker 1>bit later on, but let's stick with My Fair Lady.

0:25:24.440 --> 0:25:27.160
<v Speaker 1>There was one big drawback on that deal. So when

0:25:27.240 --> 0:25:31.520
<v Speaker 1>Jack Warner purchased the rights the film rights to make

0:25:31.560 --> 0:25:34.680
<v Speaker 1>My Fair Lady, it cost him five and a half

0:25:34.760 --> 0:25:37.760
<v Speaker 1>million dollars. This was before they had shot even a

0:25:37.800 --> 0:25:41.560
<v Speaker 1>foot of film. The rights to the film, however, reverted

0:25:41.760 --> 0:25:47.160
<v Speaker 1>to CBS after seven years because CBS was the company

0:25:47.160 --> 0:25:51.679
<v Speaker 1>that had actually financed the original Broadway production that My

0:25:51.760 --> 0:25:56.040
<v Speaker 1>Fair Lady was based off of. So once those seven

0:25:56.119 --> 0:25:58.879
<v Speaker 1>years were up, CBS got the rights, which means that

0:25:59.000 --> 0:26:01.280
<v Speaker 1>while My Fair lay He was a Warner Brothers film,

0:26:01.359 --> 0:26:05.360
<v Speaker 1>it's not in the Warner Brothers library today. In nineteen

0:26:05.440 --> 0:26:10.280
<v Speaker 1>sixty six, Jack Warner decided to sell Warner Brothers for

0:26:10.359 --> 0:26:13.560
<v Speaker 1>real zies. This time he kind of faked it out

0:26:13.920 --> 0:26:16.920
<v Speaker 1>the decade earlier, and now he's actually doing it. He

0:26:17.040 --> 0:26:19.720
<v Speaker 1>sold off his controlling shares of the company to another

0:26:19.720 --> 0:26:23.640
<v Speaker 1>company called Seven Arts Productions for thirty two million dollars.

0:26:23.640 --> 0:26:29.000
<v Speaker 1>He stayed on with with the Warner Company in various roles,

0:26:29.520 --> 0:26:31.920
<v Speaker 1>um but he irritated the heck out of the Seven

0:26:32.000 --> 0:26:34.399
<v Speaker 1>Arts Productions folks. So let's talk about Seven Arts for

0:26:34.400 --> 0:26:37.800
<v Speaker 1>a second. Seven Arts Productions made movies, but did not

0:26:38.080 --> 0:26:43.040
<v Speaker 1>distribute movies. So instead Seven Arts Productions would make films

0:26:43.040 --> 0:26:46.560
<v Speaker 1>and then partner with other studios for their release. Three

0:26:46.600 --> 0:26:49.720
<v Speaker 1>film professionals had founded the company in nineteen fifty seven,

0:26:50.040 --> 0:26:52.040
<v Speaker 1>and they were able to make films using a more

0:26:52.119 --> 0:26:56.040
<v Speaker 1>independent studio approach. So like one of those films was

0:26:56.119 --> 0:26:59.280
<v Speaker 1>Whatever Happened to Baby Jane, which they made on behalf

0:26:59.280 --> 0:27:03.159
<v Speaker 1>of Warner Brothers. Warner Brothers actually distributed that film. The

0:27:03.200 --> 0:27:06.520
<v Speaker 1>studio films were successful enough to give the owners the

0:27:06.560 --> 0:27:09.040
<v Speaker 1>cash they needed to buy out Jack Warner in nineteen

0:27:09.160 --> 0:27:13.280
<v Speaker 1>sixty six. So this new company was called Warner Brothers

0:27:13.560 --> 0:27:17.240
<v Speaker 1>Seven Arts, and the logo changed to the W B

0:27:17.600 --> 0:27:20.720
<v Speaker 1>shield was now a stylized combination of the letter W

0:27:21.080 --> 0:27:23.439
<v Speaker 1>and the number seven. So if you've ever seen a

0:27:23.480 --> 0:27:27.520
<v Speaker 1>really weird looking Warner Brothers logo, it might be that one.

0:27:27.840 --> 0:27:31.040
<v Speaker 1>To be fair, there's been a few weird Warner Brothers logos.

0:27:31.080 --> 0:27:33.880
<v Speaker 1>So if it looks like there was a number seven

0:27:34.000 --> 0:27:37.399
<v Speaker 1>merged onto the end of a W, that would be

0:27:37.480 --> 0:27:41.800
<v Speaker 1>this era. And the deal included Warner Brothers Studios, all

0:27:41.800 --> 0:27:45.680
<v Speaker 1>of the black and white Looney Tunes catalog, and Warner Records.

0:27:45.720 --> 0:27:49.040
<v Speaker 1>So why just the black and white Looney Tunes catalog. Well,

0:27:49.200 --> 0:27:52.600
<v Speaker 1>that's a really complicated story all by itself. It mostly

0:27:52.640 --> 0:27:56.280
<v Speaker 1>involves how Warner Brothers handled the rights to various cartoons

0:27:56.760 --> 0:28:00.000
<v Speaker 1>during the early era of television. The company originally made

0:28:00.040 --> 0:28:02.879
<v Speaker 1>these cartoons to play in movie theaters, not for TV,

0:28:03.560 --> 0:28:06.879
<v Speaker 1>and Warners didn't have an established television studio in the

0:28:06.920 --> 0:28:11.800
<v Speaker 1>early nineteen fifties, so the company sold television distribution rights

0:28:12.240 --> 0:28:15.240
<v Speaker 1>to a few different companies, including one that was called

0:28:15.440 --> 0:28:17.560
<v Speaker 1>Guild Films. That was the one that got the black

0:28:17.560 --> 0:28:21.159
<v Speaker 1>and white ones. But Guild Films would go bankrupt, and

0:28:21.160 --> 0:28:25.520
<v Speaker 1>then Seven Arts Productions acquired that company's assets. So technically

0:28:25.520 --> 0:28:28.719
<v Speaker 1>the distribution rights to the black and White ones already

0:28:28.720 --> 0:28:32.000
<v Speaker 1>belonged to Seven Ages Productions, but now they also owned

0:28:32.000 --> 0:28:34.919
<v Speaker 1>the company that made it. The distribution rights to the

0:28:34.960 --> 0:28:37.560
<v Speaker 1>other cartoons belonged to other companies. And I'm not going

0:28:37.600 --> 0:28:41.200
<v Speaker 1>to get into all that because wolf y'all, this is

0:28:41.280 --> 0:28:45.680
<v Speaker 1>already complicated enough as it is. The company did also

0:28:45.720 --> 0:28:49.560
<v Speaker 1>acquire Atlantic Records, which joined the Warner Records label as

0:28:49.560 --> 0:28:53.600
<v Speaker 1>a music label owned by this bigger media company. So

0:28:53.680 --> 0:28:57.360
<v Speaker 1>Warner Brothers Seven Arts was a new movie and record

0:28:57.400 --> 0:29:02.440
<v Speaker 1>company that lasted all of nearly three whole years. Why

0:29:02.560 --> 0:29:06.120
<v Speaker 1>is that, Well, partly it's because the company overextended itself

0:29:06.160 --> 0:29:08.760
<v Speaker 1>with all these acquisitions, which is something we see way

0:29:08.800 --> 0:29:13.040
<v Speaker 1>too frequently in business and partly well it's because of

0:29:13.080 --> 0:29:17.320
<v Speaker 1>the mob and parking lots and window cleaners plus a

0:29:17.360 --> 0:29:21.200
<v Speaker 1>funeral home. All right, hear me out, because things are

0:29:21.200 --> 0:29:25.280
<v Speaker 1>about to get way more bizarre. Okay, So for this

0:29:25.360 --> 0:29:28.040
<v Speaker 1>part of the story, we gotta go way way back again,

0:29:28.520 --> 0:29:33.640
<v Speaker 1>back before time. Not not you know, time is in space,

0:29:33.680 --> 0:29:36.560
<v Speaker 1>time or the experience or whatever. I mean, time incorporated.

0:29:36.920 --> 0:29:41.600
<v Speaker 1>So we're gonna go back to eighteen six. That's when

0:29:41.640 --> 0:29:46.520
<v Speaker 1>Max Swag founded a window cleaning company that he called

0:29:46.760 --> 0:29:50.440
<v Speaker 1>National Window Cleaning and House Renovating Company, and it was

0:29:50.440 --> 0:29:54.080
<v Speaker 1>in New York City. A guy named Louis Frankel joined

0:29:54.080 --> 0:29:57.160
<v Speaker 1>the company in the early nineteen hundreds and the name

0:29:57.240 --> 0:30:01.000
<v Speaker 1>changed slightly to National House and Window Cleaning Company. In

0:30:01.120 --> 0:30:05.320
<v Speaker 1>nineteen thirty seven, Max passed away, Frankel ended up leading

0:30:05.360 --> 0:30:09.680
<v Speaker 1>the company. Uh Frankel died a decade later in nineteen seven,

0:30:10.080 --> 0:30:13.800
<v Speaker 1>and his son, William Frankel took over the company. At

0:30:13.840 --> 0:30:16.360
<v Speaker 1>that point, the name of the company changed again and

0:30:16.400 --> 0:30:21.720
<v Speaker 1>became the National Cleaning Contractors, Incorporated. William Frankel would oversee

0:30:21.760 --> 0:30:25.040
<v Speaker 1>operations at the company until nineteen sixty six, which is

0:30:25.080 --> 0:30:29.040
<v Speaker 1>when a different company swoops in to acquire it, and

0:30:29.080 --> 0:30:34.520
<v Speaker 1>that company was Kinney Service Corporation. Now, for some reason,

0:30:35.080 --> 0:30:38.400
<v Speaker 1>the Antitrust Division of the Justice Department opposed this merger.

0:30:39.440 --> 0:30:42.480
<v Speaker 1>I think I know why, but I couldn't find anything

0:30:42.800 --> 0:30:46.160
<v Speaker 1>like firm about it. However, I do know that Kinney

0:30:46.200 --> 0:30:50.640
<v Speaker 1>Service Corporation was let's say, it was creative in the

0:30:50.680 --> 0:30:53.040
<v Speaker 1>way it did business, So I'm gonna switch over to

0:30:53.080 --> 0:30:57.000
<v Speaker 1>them now. So, while the cleaning company was doing business

0:30:57.040 --> 0:31:00.160
<v Speaker 1>in New York City in the nineteen forties, you at

0:31:00.160 --> 0:31:04.040
<v Speaker 1>another company that was taking shape over in New Jersey.

0:31:04.080 --> 0:31:08.600
<v Speaker 1>This one was founded by Sigmund dornbush Manny Kimmel and

0:31:09.560 --> 0:31:14.840
<v Speaker 1>mob boss Abner's Willman. Now, I'm sure you've heard that

0:31:14.920 --> 0:31:18.720
<v Speaker 1>the mob was involved in Hollywood to some extent, but

0:31:18.880 --> 0:31:20.800
<v Speaker 1>I'm not sure that you guessed it came from a

0:31:20.840 --> 0:31:24.920
<v Speaker 1>parking lot company in New Jersey, huh. Anyway, the three

0:31:24.960 --> 0:31:30.200
<v Speaker 1>of them founded the Kenny Parking Company. Anyways, Willman is

0:31:30.240 --> 0:31:33.200
<v Speaker 1>not really part of our story here because the merger

0:31:33.240 --> 0:31:35.800
<v Speaker 1>we're going to talk about happen in nineteen sixty six.

0:31:36.320 --> 0:31:42.320
<v Speaker 1>Willman died under potentially controversial circumstances. In nineteen fifty nine,

0:31:42.640 --> 0:31:46.920
<v Speaker 1>he was found hanged, but some argued that it was

0:31:46.960 --> 0:31:50.480
<v Speaker 1>suicide and some argued that it was murder. I don't

0:31:50.480 --> 0:31:53.000
<v Speaker 1>know what the truth of the matter is, but anyway,

0:31:53.000 --> 0:31:57.160
<v Speaker 1>in the early sixties, the parking Company formed a partnership

0:31:57.160 --> 0:32:01.920
<v Speaker 1>with a rental car company owned by Edward Rosenthal. And yeah,

0:32:01.960 --> 0:32:06.600
<v Speaker 1>this is getting more complicated. I'm sorry. The partnership worked well.

0:32:06.800 --> 0:32:09.920
<v Speaker 1>It was the Abbey rent a Car Company, and a

0:32:09.960 --> 0:32:12.920
<v Speaker 1>couple of years later, these two companies, the parking Company

0:32:12.960 --> 0:32:15.920
<v Speaker 1>and the rent a car company, decided that, hey, this

0:32:15.960 --> 0:32:20.000
<v Speaker 1>works so great, let's merge and make a single company. Now.

0:32:20.240 --> 0:32:23.280
<v Speaker 1>In that process, Rosenthal decided he would bring in some

0:32:23.360 --> 0:32:25.840
<v Speaker 1>of his other concerns, some of his other companies that

0:32:25.920 --> 0:32:30.400
<v Speaker 1>he owned, which included a funeral home called Riverside Memorial

0:32:30.520 --> 0:32:36.080
<v Speaker 1>Chapel and another company called the City Service Cleaning Contractors incorporated.

0:32:36.960 --> 0:32:42.840
<v Speaker 1>This collection of rag tag companies became the Kinney Service Corporation,

0:32:42.920 --> 0:32:45.600
<v Speaker 1>which I mean, I guess you've got to call it

0:32:45.840 --> 0:32:48.480
<v Speaker 1>something and and it is hard to come up with

0:32:48.480 --> 0:32:51.240
<v Speaker 1>a name for a company that has divisions that specialize

0:32:51.240 --> 0:32:56.040
<v Speaker 1>in parking lots, window cleaning, rental cars, and funeral homes.

0:32:57.240 --> 0:32:59.960
<v Speaker 1>I'm drawn a blank here, so I guess Kinney Service

0:33:00.000 --> 0:33:03.520
<v Speaker 1>Corporation it is. The company also bought up nine more

0:33:03.680 --> 0:33:06.720
<v Speaker 1>funeral homes too. They really took service to a new,

0:33:08.320 --> 0:33:13.720
<v Speaker 1>really weird level. Edward Rosenthal's daughter Carol, married a man

0:33:13.840 --> 0:33:18.600
<v Speaker 1>named Steve Ross, and in nineteen sixty six, Kenney Service

0:33:18.640 --> 0:33:24.280
<v Speaker 1>Corporation merged with the National Cleaning Contractors, the one that

0:33:24.320 --> 0:33:28.000
<v Speaker 1>was founded in eighteen six. And I'm guessing that the

0:33:28.040 --> 0:33:31.400
<v Speaker 1>Department of Justice was worried that the cleaning National Cleaning

0:33:31.440 --> 0:33:35.240
<v Speaker 1>Contractors and the the City Service Cleaning Contractors that were

0:33:35.280 --> 0:33:39.800
<v Speaker 1>part of Kinney could have represented an anti competitive monopoly

0:33:40.160 --> 0:33:43.840
<v Speaker 1>in cleaning. That's the only thing I can guess. Anyway,

0:33:43.880 --> 0:33:46.840
<v Speaker 1>whatever the beef was, the merger still happened, and the

0:33:46.840 --> 0:33:50.600
<v Speaker 1>new company had the name Kinney National Company, and Steve

0:33:50.720 --> 0:33:53.560
<v Speaker 1>Ross took the helm. We'll talk a little bit more

0:33:53.560 --> 0:33:57.000
<v Speaker 1>about Kinney National Company and what happened next after this

0:33:57.120 --> 0:34:08.200
<v Speaker 1>quick break. In nineteen sixty seven, the Kinney National Company

0:34:08.239 --> 0:34:13.279
<v Speaker 1>purchased a publishing company called National Periodical Publications. But you

0:34:13.440 --> 0:34:18.319
<v Speaker 1>probably know that company better as d C Comics. Yep,

0:34:18.920 --> 0:34:22.279
<v Speaker 1>this is how d C Comics would eventually become part

0:34:22.360 --> 0:34:25.760
<v Speaker 1>of the Warner Brothers family. By way of a funeral

0:34:25.840 --> 0:34:31.759
<v Speaker 1>home slash window cleaning slash parking lot company, you know, naturally. So,

0:34:32.320 --> 0:34:35.239
<v Speaker 1>just so we're clear, Warner Brothers didn't so much as

0:34:35.320 --> 0:34:39.759
<v Speaker 1>acquire d C Comics, as both DC and w B

0:34:40.120 --> 0:34:43.759
<v Speaker 1>got gobbled up by the same company. Steve Ross, the

0:34:43.800 --> 0:34:46.160
<v Speaker 1>head of Kinney National Company, must have had a real

0:34:46.239 --> 0:34:49.640
<v Speaker 1>love of the movie industry, because he, in short orders

0:34:49.640 --> 0:34:52.800
<v Speaker 1>set about using the newly merged companies assets to acquire

0:34:52.800 --> 0:34:56.440
<v Speaker 1>companies in the business that is show. He bought a

0:34:56.520 --> 0:35:00.520
<v Speaker 1>talent agency, and he bought the Cabra and Lynn company

0:35:00.600 --> 0:35:04.719
<v Speaker 1>Pana Vision, and he had his eye on Warner Brothers. Now,

0:35:04.760 --> 0:35:08.600
<v Speaker 1>as I mentioned earlier, Seven Arts Productions purchased Warner Brothers

0:35:08.600 --> 0:35:11.040
<v Speaker 1>from Jack Warner for thirty two million dollars a few

0:35:11.120 --> 0:35:15.720
<v Speaker 1>years earlier. Then they went and purchased Atlantic Records, and

0:35:16.000 --> 0:35:19.160
<v Speaker 1>they ended up being a little strapped for cash. Ross

0:35:19.280 --> 0:35:21.560
<v Speaker 1>was given a hot tip about it from the owner

0:35:21.600 --> 0:35:24.600
<v Speaker 1>of the talent agency they had acquired, and so he

0:35:24.680 --> 0:35:29.560
<v Speaker 1>made an offer to the heads of Warner Brothers seven Ages,

0:35:30.160 --> 0:35:34.440
<v Speaker 1>and they accepted it. The offer was for sixty million

0:35:34.480 --> 0:35:38.680
<v Speaker 1>dollars for four hundred million dollars. Honestly, I found a

0:35:38.680 --> 0:35:41.880
<v Speaker 1>lot of conflicting information about this um. I tend to

0:35:41.920 --> 0:35:44.440
<v Speaker 1>believe the sixty million more than the four hundred million,

0:35:44.480 --> 0:35:48.200
<v Speaker 1>but I kept coming up against different amounts. Anyway, the

0:35:48.280 --> 0:35:53.320
<v Speaker 1>companies ended up merging, and consequently Kenny National Company would

0:35:53.320 --> 0:35:57.200
<v Speaker 1>sell off its talent agency because otherwise that would be

0:35:57.280 --> 0:36:01.279
<v Speaker 1>seen as being anti competitive to have both movie studio

0:36:01.360 --> 0:36:03.960
<v Speaker 1>and a talent agency, not just a movie studio, a

0:36:04.000 --> 0:36:09.120
<v Speaker 1>television studio too. Ted Ashley, who had previously overseen said

0:36:09.239 --> 0:36:12.760
<v Speaker 1>talent agency, would become the head of the new Warner

0:36:12.800 --> 0:36:17.359
<v Speaker 1>Brothers Incorporated. Around this time, Jack Warner officially retired from

0:36:17.400 --> 0:36:21.280
<v Speaker 1>Warner Brothers, but he continued to work with the company

0:36:21.320 --> 0:36:24.400
<v Speaker 1>in some respect for nearly another decade until his death.

0:36:24.960 --> 0:36:27.759
<v Speaker 1>As for the new Warner Brothers Incorporated, it ran into

0:36:27.840 --> 0:36:30.680
<v Speaker 1>some trouble before too long, but for once it wasn't

0:36:30.680 --> 0:36:33.000
<v Speaker 1>because of the movie side of the business, at least

0:36:33.000 --> 0:36:38.040
<v Speaker 1>not overtly. Rather, there was a price fixing scandal that

0:36:38.120 --> 0:36:42.879
<v Speaker 1>focused on the parking operations of the company, and so

0:36:43.239 --> 0:36:46.880
<v Speaker 1>in an effort to kind of salvage operations, the company

0:36:46.960 --> 0:36:50.680
<v Speaker 1>leaders decided that they needed to split this company into two,

0:36:51.080 --> 0:36:54.800
<v Speaker 1>so in one company would be all the entertainment assets

0:36:54.840 --> 0:36:58.720
<v Speaker 1>such as the Warner Brothers Movie Studio, the television studio,

0:36:58.800 --> 0:37:03.439
<v Speaker 1>the record studios, cetera. The other company would be everything else,

0:37:03.480 --> 0:37:06.960
<v Speaker 1>you know, window washers and funeral directors and parking lots

0:37:06.960 --> 0:37:09.400
<v Speaker 1>and all that kind of stuff. So what we got

0:37:09.640 --> 0:37:13.800
<v Speaker 1>was Warner Communications on one side and the Kinney National

0:37:13.880 --> 0:37:17.319
<v Speaker 1>Company on the other side. So now we can say

0:37:17.320 --> 0:37:22.200
<v Speaker 1>goodbye to Kenny and we'll stick with Warner. Okay. So

0:37:22.560 --> 0:37:25.960
<v Speaker 1>at this point we've got Warner Communications, which serves as

0:37:26.080 --> 0:37:30.560
<v Speaker 1>a parent company, and its subsidiaries include Warner Brothers Studios.

0:37:30.600 --> 0:37:34.399
<v Speaker 1>That's the movie studios, h the Warner Music Group, which

0:37:34.400 --> 0:37:39.080
<v Speaker 1>included not just Warner and Atlantic, but also record companies

0:37:39.120 --> 0:37:44.759
<v Speaker 1>like Asylum, Elektra and more. Then we've got Dimension Pictures,

0:37:44.920 --> 0:37:47.960
<v Speaker 1>which is a film production company or was a film

0:37:47.960 --> 0:37:50.759
<v Speaker 1>production company that was largely known for making movies in

0:37:50.800 --> 0:37:56.480
<v Speaker 1>the exploitation categories. So that includes classics like Dolomite, Returned

0:37:56.480 --> 0:38:00.000
<v Speaker 1>to Boggy Creek, which MST. Three K did an episod

0:38:00.040 --> 0:38:04.360
<v Speaker 1>it on oh In Satan's Cheerleaders, you know, real classics,

0:38:04.920 --> 0:38:08.600
<v Speaker 1>and the company also owned d C Comics and Mad Magazine.

0:38:09.640 --> 0:38:14.920
<v Speaker 1>Warner Communications would make several more acquisitions. In ninety nine,

0:38:15.000 --> 0:38:18.760
<v Speaker 1>it partnered with American Express to create a joint venture

0:38:19.200 --> 0:38:24.480
<v Speaker 1>called Warner Amex Satellite Entertainment, which oversaw cable channels like

0:38:24.800 --> 0:38:29.680
<v Speaker 1>MTV and Nickelodeon and the movie Channel YEP. Those started

0:38:29.680 --> 0:38:33.640
<v Speaker 1>out as Warner Brothers Concerns or I guess Co. Warner

0:38:33.719 --> 0:38:38.560
<v Speaker 1>Brothers Concerns and Warner Communications also purchased a little company

0:38:38.600 --> 0:38:42.799
<v Speaker 1>called Atari in nineteen seventy six. Now I covered this

0:38:42.840 --> 0:38:46.399
<v Speaker 1>in my episodes about Attari several years ago, but let's

0:38:46.400 --> 0:38:49.960
<v Speaker 1>go over a real quick version. So Nolan Bushnell, who

0:38:50.040 --> 0:38:53.240
<v Speaker 1>was leading a Torii when it was a private company,

0:38:53.480 --> 0:38:56.160
<v Speaker 1>had a problem. He was about to launch a video

0:38:56.200 --> 0:39:00.920
<v Speaker 1>game console to the home market. But producing hardware is expensive.

0:39:01.000 --> 0:39:04.160
<v Speaker 1>You have to pay the manufacturing costs, and then there's

0:39:04.160 --> 0:39:07.840
<v Speaker 1>issues like supply chain, both before when you're just getting

0:39:07.840 --> 0:39:10.440
<v Speaker 1>all the parts to put together and after when you're

0:39:10.520 --> 0:39:13.759
<v Speaker 1>shipping the finished units out to retail outlets. It was

0:39:13.760 --> 0:39:17.200
<v Speaker 1>going to require more money than the company had on hand,

0:39:17.520 --> 0:39:20.040
<v Speaker 1>and so Bushnell made the decision to see if some

0:39:20.239 --> 0:39:24.120
<v Speaker 1>other company would be willing to buy Atari and essentially

0:39:24.520 --> 0:39:28.719
<v Speaker 1>foot the bill for production. Warner Communications turned out to

0:39:28.800 --> 0:39:33.960
<v Speaker 1>be that company. In nineteen Warner Communications acquired Attari for

0:39:34.000 --> 0:39:37.520
<v Speaker 1>the princely sum of twenty eight million dollars. It took

0:39:37.560 --> 0:39:40.520
<v Speaker 1>some time for that investment to actually pay off. Early

0:39:40.600 --> 0:39:44.319
<v Speaker 1>issues with manufacturing caused delays, which cost the company a

0:39:44.360 --> 0:39:47.640
<v Speaker 1>lot of money, but things turned around fairly quickly, and

0:39:47.680 --> 0:39:51.920
<v Speaker 1>the success of Atari helped Warner Communications offset some shortfalls

0:39:51.960 --> 0:39:55.960
<v Speaker 1>that the company was experiencing in their movie and music divisions.

0:39:56.960 --> 0:40:00.320
<v Speaker 1>Of course, anyone familiar with the home video game market

0:40:00.400 --> 0:40:04.239
<v Speaker 1>knows what ultimately happened. While the industry was writing high

0:40:04.239 --> 0:40:08.520
<v Speaker 1>in the late seventies and early eighties, sometimes literally, as

0:40:08.560 --> 0:40:11.680
<v Speaker 1>I understand, companies like Atari sometimes resembled more like a

0:40:11.800 --> 0:40:15.520
<v Speaker 1>rock star party than a media company. Anyway, it all

0:40:15.640 --> 0:40:20.800
<v Speaker 1>came crashing down in a glut of consoles and cheap

0:40:20.840 --> 0:40:25.120
<v Speaker 1>games had saturated the market, and consumers were drifting away

0:40:25.160 --> 0:40:29.640
<v Speaker 1>from consoles and toward a new technological wonder, the personal computer.

0:40:30.280 --> 0:40:34.319
<v Speaker 1>The entire industry had a massive collapse, and Atari was

0:40:34.680 --> 0:40:37.320
<v Speaker 1>essentially at the center of it. By the end of

0:40:37.400 --> 0:40:41.279
<v Speaker 1>nineteen eight three, Warner Communications was hurting. Its film and

0:40:41.400 --> 0:40:44.560
<v Speaker 1>music divisions weren't performing so well, and the video game

0:40:44.600 --> 0:40:48.000
<v Speaker 1>division was now in shambles. Warner sold off the parts

0:40:48.000 --> 0:40:52.120
<v Speaker 1>of Atari associated with consumer products, which included stuff like

0:40:52.239 --> 0:40:56.440
<v Speaker 1>consoles and computers and game development, and sold it to

0:40:56.520 --> 0:41:00.520
<v Speaker 1>Jack Tramiel, the former CEO of Commodore. I've done episodes

0:41:00.600 --> 0:41:04.480
<v Speaker 1>about Tramuel in the past. It's kind of a vindictive guy.

0:41:04.520 --> 0:41:08.000
<v Speaker 1>But that's off topic for our discussion about Warner. Warner

0:41:08.080 --> 0:41:12.479
<v Speaker 1>retained the arcade game division of Atari, so they sold

0:41:12.480 --> 0:41:14.960
<v Speaker 1>off the home market stuff, but they kept the arcade

0:41:14.960 --> 0:41:18.960
<v Speaker 1>market stuff. They renamed that Atari Games. So this was

0:41:19.040 --> 0:41:22.839
<v Speaker 1>the great split of Atari into two different entities, and

0:41:22.880 --> 0:41:26.279
<v Speaker 1>it would fracture further from there. And if you listen

0:41:26.320 --> 0:41:29.080
<v Speaker 1>to my episodes about Midway, you might have heard that

0:41:29.120 --> 0:41:32.719
<v Speaker 1>this division of Atari would ultimately shift over to Williams

0:41:32.800 --> 0:41:37.480
<v Speaker 1>slash Midway Games, and Atari Games would eventually become Midway

0:41:37.560 --> 0:41:42.680
<v Speaker 1>Games West. So Warner Communications was in some financial trouble.

0:41:43.000 --> 0:41:47.960
<v Speaker 1>In Warner bought out American Expresses Steak in the Warner

0:41:48.040 --> 0:41:52.680
<v Speaker 1>Amex satellite entertainment company. It's the one that owned cable channels,

0:41:53.280 --> 0:41:57.200
<v Speaker 1>and then in Night five, Warner sold this company off

0:41:57.280 --> 0:42:01.520
<v Speaker 1>to Viacom, which has its own incredbly complicated history, but

0:42:01.600 --> 0:42:04.960
<v Speaker 1>for now we'll just say that Warner's brief fling and

0:42:05.040 --> 0:42:08.640
<v Speaker 1>owning cable companies had come to an end for now,

0:42:09.680 --> 0:42:13.040
<v Speaker 1>with Viacom assuming a big chunk of debt from Warner

0:42:13.200 --> 0:42:17.040
<v Speaker 1>as part of this deal. And now finally we get

0:42:17.080 --> 0:42:22.000
<v Speaker 1>to the merger between Time Incorporated and Warner Communications. So

0:42:22.320 --> 0:42:25.239
<v Speaker 1>Time announced in March of nine nine that it was

0:42:25.280 --> 0:42:28.600
<v Speaker 1>going to merge with Warner Communications and thus create a

0:42:28.600 --> 0:42:32.560
<v Speaker 1>new company called Time Warner. But at that same time,

0:42:32.920 --> 0:42:36.840
<v Speaker 1>a company called Gulf and Western later known as Paramount Communications,

0:42:37.239 --> 0:42:42.200
<v Speaker 1>attempted a hostile takeover of Time. And these hostile takeovers

0:42:42.440 --> 0:42:44.719
<v Speaker 1>really big in the eighties, So I guess i'll go

0:42:44.760 --> 0:42:48.080
<v Speaker 1>over that really quickly, just to explain what they are. So,

0:42:48.120 --> 0:42:51.720
<v Speaker 1>typically you have the board of directors of a company

0:42:51.760 --> 0:42:54.759
<v Speaker 1>that makes decisions on behalf of a company, and those

0:42:54.800 --> 0:42:58.880
<v Speaker 1>decisions include whether or not to accept some other companies

0:42:58.960 --> 0:43:02.640
<v Speaker 1>acquisition offer. So if it's a private company that this

0:43:02.719 --> 0:43:05.080
<v Speaker 1>is just These are the people who make all the decisions.

0:43:05.120 --> 0:43:07.520
<v Speaker 1>What they say goes. If they don't want to sell,

0:43:07.760 --> 0:43:12.320
<v Speaker 1>no one sells. But for publicly traded companies like Time Incorporated,

0:43:12.680 --> 0:43:16.440
<v Speaker 1>it's different. So in a publicly traded company, it's possible

0:43:16.480 --> 0:43:21.680
<v Speaker 1>to convince shareholders to agree to an acquisition against the

0:43:21.719 --> 0:43:25.160
<v Speaker 1>wishes of the board of directors. The acquirer has to

0:43:25.200 --> 0:43:29.520
<v Speaker 1>convince enough shareholders to vote for the measure, and then

0:43:29.600 --> 0:43:33.040
<v Speaker 1>even if the Board of directors disagree, the acquisition goes through.

0:43:33.640 --> 0:43:35.640
<v Speaker 1>One way to do this is to appeal to the

0:43:35.680 --> 0:43:39.600
<v Speaker 1>greed of shareholders and promise higher share prices than whatever

0:43:39.640 --> 0:43:43.480
<v Speaker 1>the market currently values them at. Time raised its bid

0:43:43.520 --> 0:43:47.440
<v Speaker 1>for Warner Communications and rushed to complete the merger. Now,

0:43:47.480 --> 0:43:51.000
<v Speaker 1>at this point, the deal was valued at nearly fifteen

0:43:51.040 --> 0:43:54.720
<v Speaker 1>billion dollars, and there were a couple of court cases

0:43:54.719 --> 0:43:59.040
<v Speaker 1>that Paramount Communications brought against this, but Time ended up

0:43:59.160 --> 0:44:02.480
<v Speaker 1>winning those time and time again, and thus the Time

0:44:02.520 --> 0:44:07.880
<v Speaker 1>Warner merger finally got greenlit and we got ourselves emerged company.

0:44:08.920 --> 0:44:11.560
<v Speaker 1>This is a good place for us to wrap up.

0:44:12.000 --> 0:44:14.360
<v Speaker 1>When we come back for the next entry into this series,

0:44:14.719 --> 0:44:18.240
<v Speaker 1>we'll learn more about the business of Time Warner, which

0:44:18.480 --> 0:44:22.320
<v Speaker 1>was pretty complicated and got into things like amusement parks

0:44:22.680 --> 0:44:26.120
<v Speaker 1>and and other things. We'll talk about how a O

0:44:26.280 --> 0:44:29.440
<v Speaker 1>L would fit into all of this not well, by

0:44:29.480 --> 0:44:32.600
<v Speaker 1>the way, and all the messy stuff that would follow

0:44:32.920 --> 0:44:37.640
<v Speaker 1>leading up to the modern take on Warner Media and

0:44:37.680 --> 0:44:41.640
<v Speaker 1>what is going on with the proposed merger with Discovery Communications.

0:44:41.960 --> 0:44:44.680
<v Speaker 1>But that's for the next episode. If you have suggestions

0:44:44.680 --> 0:44:47.080
<v Speaker 1>for other things I should cover on tech Stuff, reach

0:44:47.080 --> 0:44:49.440
<v Speaker 1>out to me on Twitter the handle I use as

0:44:49.520 --> 0:44:52.760
<v Speaker 1>Text Stuff hs W, and I'll talk to you again

0:44:53.640 --> 0:45:02.200
<v Speaker 1>really soon. Tech Stuff is an I Heart Radio production.

0:45:02.440 --> 0:45:05.239
<v Speaker 1>For more podcasts from I Heart Radio, visit the i

0:45:05.360 --> 0:45:08.600
<v Speaker 1>Heart Radio app, Apple Podcasts, or wherever you listen to

0:45:08.640 --> 0:45:09.560
<v Speaker 1>your favorite shows.