A Depression-era standoff between actors unions and studios around a new technology—talkies!—offers some lessons for the age of AI.
the longtime executive director of AMPAS, points out that in order to woo back Academy members , the organization would spend several years instituting significant rules changes, including preventing the Academy from interfering with labor and employment issues. Over time, the awarding of Oscars and the establishment of the body as a pantheon of proven talent would assure the institution’s unique position.
That August, Irving Thalberg, MGM’s production chief, returned from a monthslong trip to Europe and was appalled by the impact of the wage cuts that Mayer, following the lead of the other studios, had instituted in Thalberg’s absence. Most of MGM’s writers respected Thalberg and assumed he would stand up for them. So when Frances Marion had a private meeting with him, she was shocked that he accused her of betrayal.
What followed was an eight-year roller coaster. Mayer never did repay the MGM employees, but in the summer of 1933 the company’s shareholders had received their full dividends. Different studios closed for a week or two at a time. Transparency was an issue, then as now. The question arose in various quarters: Did Mayer and the other, Jack Warner, Adolph Zukor, and Harry Cohn, really agree to that much-ballyhooed pay cut? Most Hollywood bookmakers wouldn’t have taken that bet.
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