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Why did major Hollywood studios initially reject Lee De Forest’s Phonofilm system?
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Silent film era
(From left) Zasu Pitts, Gibson Gowland, and Hughie Mack in the silent film Greed (1924), directed by Erich von Stroheim.
Major Hollywood studios initially rejected Lee De Forest’s Phonofilm system because they viewed "talking pictures" as an expensive novelty that offered little potential for financial return.1
While De Forest’s system was conceptually sound, its operating quality was poor during the period he attempted to market it to film producers between 1923 and 1927. Furthermore, the industry was hesitant to invest in the massive, costly overhaul of studios and theaters required to transition from the established silent film format. It was not until the success of Warner Bros. and their use of the Vitaphone system that the major studios recognized the commercial viability of synchronized sound and began adopting sound-on-film technologies.23451