Films really started to make a mark in the 1920s, most were recorded in or near Hollywood on the West Coast. Some films were still being made in New Jersey and in Astoria on Long Island (Paramount). By the mid 1920s, movies were huge for business, with a capital investment of over two billion dollars. By the end of the decade, there were twenty Hollywood studios, and the demand for films was higher then ever. Most people don't know that the greatest output of feature films in the US happened in the 1920s and 1930s. Back then, 800 films per year was the average output. These days, the average is around 500.
The Major Film Studios: The Big Five
1920-1930 was the decade between the end of the Great War and the Depression, following the Stock Market Crash. Studios were not initially affected in this decade by the crash in late 1929.
The main film studios were:
Warner Bros. Incorporated in 1923 by four Polish brothers. Famous for Bugs Bunny, and other cartoons, which come into the big picture later on.

Picture above found on: http://www.filmsite.org/history/warnerbros.jpg
Famous Players-Lasky. Soon changed its name to Paramount.
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Picture Above found on: http://upload.wikimedia.org/wikipedia/commons/thumb/7/77/Paramount_logo_1914.jpg/200px-Paramount_logo_1914.jpg
RKO (Radio-Keith-Orpheum) Pictures. The smallest of the major theaters.

Picture above found on: http://www.filmsite.org/history/RKOstudios.jpg
Metro-Goldwyn-Mayer. Mainly known as MGM, makers of the Wizard of Oz in the late 30's.

Picture above found on: http://www.filmsite.org/covers/mgmlogo.jpg
20th-Century Fox Known for Shirley Temple films in the mid-30s.

Picture above found on: http://www.filmsite.org/history/20thcfox2.jpg
My thoughts; I am glad to see how far movies have come. The entertainment industry has taken multiple huge steps forward. I cannot wait to see further improvements.
Sources: http://www.filmsite.org/20sintro.html
(Pretty much has it all)
Comments
Good!