A movie studio (aka film studio) is, in the established sense of the term, a company that distributes films. Literally, however, the term denotes a controlled environment for the making of a motion picture. This environment may be interior (sound stage), exterior (backlot), or both. In general parlance, the term is synonymous with "major film production company," due largely to the fact that the leading production companies of Hollywood's "Golden Age"—stretching from the late 1920s to the late 1940s—owned their own studio facilities, as do a few today. However, worldwide (and even in the United States) the majority of production companies have never owned their own studios, but have had to rent space at independently owned facilities that, in many cases, never produce a film of their own.

Beginnings

In 1893, Thomas Edison built the first movie studio in the United States when he constructed the Black Maria, a tarpaper-covered structure near his laboratories in West Orange, New Jersey, and asked circus, vaudeville, and dramatic actors to perform for the camera. He distributed these movies at vaudeville theaters, penny arcades, wax museums, and fairgrounds. Other studio operations followed in New Jersey, New York City, and Chicago.

In the early 1900s, companies started moving to Los Angeles, California, because of the good weather and longer daysFact: date=April 2008. Although electric lights were by then widely available, none were yet powerful enough to adequately expose film; the best source of illumination for motion picture production was natural sunlight. Some movies were shot on the roofs of buildings in downtown Los Angeles. Early movie producers also relocated to Southern California to escape Edison's Motion Picture Patents Company, which controlled almost all the patents relevant to movie production at the time. The distance from New Jersey made it more difficult for Edison to enforce his patents.

The first movie studio in the Hollywood area was Nestor Studios, opened in 1911 by Al Christie for David Horsley. In the same year, another fifteen independents settled in Hollywood. Other production companies eventually settled in the Los Angeles area in places such as Culver City, Burbank, and what would soon become known as Studio City in the San Fernando Valley.

The "majors"

The Big 5
By the mid-1920s, the evolution of a handful of American production companies into wealthy film industry conglomerates that owned their own studios, distribution divisions, and theaters, and contracted with performers and other filmmaking personnel, led to the sometimes confusing equation of "studio" with "production company" in industry slang. Five large companies, 20th Century-FOX, RKO, Paramount Pictures, Warner Brothers, and Loews (MGM) came to be known as the "Big Five," the "majors," or "the Studios" in trade publications such as Variety, and their management structures and practices collectively came to be known as the "studio system."