Balio, Tino
1985
Part I: A Novelty Spawns Small Businesses, 1894-1908 in Balio, Tino ~ The American Film Industry

Film history, not economics. But describes the industry beginnings.

10
“Although the technical novelty of moving pictures was enough to thrill the first audiences, producers soon realized that if business was to continue, a steady supply of fresh films was required.”

“[Edison] instituted a series of patent infringement suits in December 1897 against nearly every organization and individual of consequence that had entered the business.”

18
“[…] the movies [and with them nickelodeons] did not remain the province of the working class for long.”

20
“The records of the Biograph Company reveal that in the period 1900-1906, the studio produced more nontheatrical subjects than dramatic films, 1,035 and 774, respectively. By 1908, however, the industry concentrated its production efforts on narratives almost exclusively.”

“Narratives […] offered the advantage of regularizing and stabilizing production.” Not like docos or news: if there was not news, there was nothing to show; and cameramen had to travel to the news, which was costly.

23
“Edison wanted the entire pie for himself.” He was ruthless, his aim a monopoly with him as king. The other companies weren’t much better, though.

24
“the patent wars seriously hampered expansion of the industry.” People were making money, but the situation was unsure. So nobody invested in anything. Small companies simply “closed their doors.” Barriers to entry had been created.

25
“Edison and Biograph declared a truce in summer 1908, and formed the Motion Picture Patents Company. By joining forces they could now control the industry without a doubt.”