New Hollywood and independent filmmaking

Following the advent of television and the Paramount Case, the major studios attempted to lure audiences with spectacle. Screen gimmicks, Widescreen processes and technical improvements, such as Cinemascope, stereo sound, 3-D and others, were invented in order to retain the dwindling audience by giving them a larger-than-life experience.
The 1950s and early 1960s saw a Hollywood dominated by musicals, historical epics, and other films which benefited from these advances. This proved commercially viable during most of the 1950s. However, by the late 1960s, audience share was dwindling at an alarming rate. Several costly flops, including Cleopatra and Hello, Dolly! put severe strain on the studios. Meanwhile, in 1951, lawyers-turned-producers Arthur Krim and Robert Benjamin had made a deal with the remaining stockholders of United Artists which would allow them to make an attempt to revive the company and, if the attempt was successful, buy it after five years. The attempt was a success, and in 1955 United Artists became the first "studio" without an actual studio. UA leased space at the Pickford/Fairbanks Studio, but did not own a studio lot as such. Because of this, many of their films would be shot on location. Primarily acting as bankers, they offered money to independent producers. Thus UA did not have the overhead, the maintenance or the expensive production staff which ran up costs at other studios. UA went public in 1956, and as the other mainstream studios fell into decline, UA prospered, adding relationships with the Mirisch brothers, Billy Wilder, Joseph E. Levine and others.
By the mid 1960s, RKO had collapsed completely, and the remaining four of big five had recognized that they did not know how to reach the youth audience. Foreign films, especially European and Japanese cinema, were experiencing a major boom in popularity with young people, who were interested in seeing films with non-traditional subjects and narrative structures. An added draw for such films was that they, like the American independents, were unencumbered by the production code. In an attempt to capture this audience, the Studios hired a host of young filmmakers (many of whom were mentored by Roger Corman) and allowed them to make their films with relatively little studio control.
In 1967, Warner Brothers offered first-time producer Warren Beatty 40% of the gross on his film Bonnie & Clyde instead of a minimal fee. The movie proceeded to gross over $70 million worldwide by 1973. This initial successes paved the way for the studio to relinquish almost complete control to the film school generation and began what the media dubbed "New Hollywood."
On May 16, 1969, Dennis Hopper, a young American filmmaker, wrote, directed, and acted in his first film, Easy Rider. Along with his producer/star/co-writer Peter Fonda, Hopper was responsible for the first completely independent film of New Hollywood. Easy Rider debuted at Cannes and garnered the "First Film Award," ("Prix de la premiere oeuvre") after which it received two Oscar nominations, one for best original screenplay and one for Corman-alum Jack Nicholson's breakthrough performance in the supporting role of George Hanson, an alcoholic lawyer for the ACLU.
Following on the heels of Easy Rider just over a week later, the revived United Artists' Midnight Cowboy, which, like Easy Rider, took numerous cues from Ken Anger and his influences in the French New Wave, became the first and only X rated film to win the Academy Award for best picture. Midnight Cowboy also held the distinction of featuring cameo roles by many of the top Warhol superstars, who had already become symbols of the militantly anti-Hollywood climate of NYC's independent film community.
Within a month, another young Corman trainee, Francis Ford Coppola, made his debut in Spain at the Donostia-San Sebastian International Film Festival with The Rain People, a film he had founded his own studio, American Zoetrope, to make a reality. Though The Rain People was largely overlooked by American audiences, Zoetrope would became a powerful force in New Hollywood. Through Zoetrope, Coppola formed a distribution agreement with studio giant, Warner Bros., which he would exploit to achieve wide releases for his films without making himself subject to the controlling forces of Hollywood.
These three films provided the major Hollywood studios with both an example to follow and a new crop of talent to draw from. In 1971, Zoetrope co-founder George Lucas made his feature film debut with THX 1138, also released by Zoetrope through their deal with Warner Bros., announcing himself as another major talent of New Hollywood. By the following year, the leaders of the New Hollywood revolution had made enough of a name for themselves that Coppola was able to convince Paramount to fund his multi-generational gangster epic, The Godfather. Meanwhile Lucas had obtained studio funding for American Graffiti from Universal. In the mid-1970s, the major Hollywood studios continued to tap these new filmmakers for both ideas and personnel, producing idiosyncratic, startling original films such as Paper Moon, Dog Day Afternoon and Taxi Driver, all of which were met with enormous critical and commercial success. These successes by the members of New Hollywood led each of them in turn to make more and more extravagant demands, both on the studio and eventually on the audience.
It can often seem that all members of the New Hollywood generation were independent filmmakers. Though those mentioned above began with a considerable claim on the title, almost all of the major films commonly associated with the movement were studio projects. The New Hollywood generation soon became firmly entrenched in a revived incarnation of the studio system, which financed the development, production and distribution of their films. Very few of these filmmakers ever independently financed or independently released a film of their own, or ever worked on an independently financed production during the height of the generation's influence. Seemingly independent films such as Taxi Driver, The Last Picture Show and others were studio films: the scripts were based on studio pitches and subsequently paid for by the studios, the production financing was from the studio, and the marketing and distribution of the films were designed and controlled by the studio. Though Coppola made considerable efforts to resist the influence of the studios, opting to finance his risky 1979 film Apocalypse Now himself rather than compromise with skeptical studio executives, he, and filmmakers like him, had saved the old studios from financial ruin by providing them with a new formula for success.
Indeed, it was during this period that the very definition of an independent film became blurred. Though Midnight Cowboy was financed by United Artists, the company was certainly a studio. Likewise, Zoetrope was another "independent studio" which worked within the system to make a space for independent directors who needed funding. George Lucas would leave Zoetrope in 1971 to create his own independent studio, Lucasfilm, which would produce the blockbuster Star Wars and Indiana Jones trilogies. In fact, the only two movies of the movement which can be described as uncompromisingly independent are Easy Rider at the beginning, and Peter Bogdanovich's They All Laughed, at the end. Peter Bogdanovich bought back the rights from the studio to his 1980 film and paid for its distribution out of his own pocket, convinced that the picture was better than what the studio believed — he eventually went bankrupt because of this.
In retrospect, it can be seen that Steven Spielberg's Jaws (1975) and George Lucas's Star Wars (1977) marked the beginning of the end for the New Hollywood. With their unprecedented box-office successes, these movies jump-started Hollywood's blockbuster mentality, giving studios a new paradigm as to how to make money in this changing commercial landscape. The focus on high-concept premises, with greater concentration on tie-in merchandise (such as toys), spin-offs into other media (such as soundtracks), and the use of sequels (which had been made more respectable by Coppola's The Godfather Part II), all showed the studios how to make money in the new environment.
On realizing how much money could potentially be made in films, major corporations started buying up the remaining Hollywood studios, saving them from the oblivion which befell RKO in the 50s. Eventually, even RKO was revived. The corporate mentality these companies brought to the filmmaking business would slowly squeeze out the more idiosyncratic of these young filmmakers, while ensconcing the more malleable and commercially successful of them. Like the original independents who fled the Edison Trust to form old Hollywood, the young film school graduates who had fled the studios to explore on-location shooting and dynamic, neo-realist styles and structures ended up replacing the tyrants they had sought to dislodge with a more stable and all-pervasive base of power.