Early business ventures Samuel Warner was the first member of his family to move into the entertainment industry. In the early 1900s, he formed a business partnership with another Youngstown resident and "took over" the city's Old Grand Opera House, which he used as a venue for "cheap vaudeville and photoplays". The venture failed after one summer. Warner then secured a job as a
projectionist at
Idora Park, a local amusement park. He persuaded the family of the new medium's possibilities and negotiated the purchase of a Model B
Kinetoscope from a projectionist who was "down on his luck". The purchase price was $1,000. Warner's interest in film came after seeing
Thomas Edison's
The Great Train Robbery while working as an employee at
Cedar Point Pleasure Resort in
Sandusky, Ohio. During this time, Albert agreed to join Samuel and together the two displayed showings of
The Great Train Robbery at carnivals throughout the states of Ohio and Pennsylvania; Sam Warner would run the film projector and Albert would sell tickets. Through the money Harry made by selling the bicycle shop, the three brothers were now able to purchase a building in
New Castle, Pennsylvania; The brothers named their new theater The Cascade Movie Palace. The Cascade Movie Palace was so successful that the brothers were able to purchase a second theater in New Castle. This makeshift theatre, called the Bijou, was furnished with chairs borrowed from a local undertaker. They maintained the theater until moving into film distribution in 1907. That year, the Warner brothers established the
Pittsburgh-based Duquesne Amusement Company, and the three brothers rented an office in the Bakewell building in downtown Pittsburgh. In 1909, the brothers sold the Cascade Theater for $40,000, and decided to open a second film exchange in Norfolk, Virginia; through this Norfolk company, younger brother
Jacob (known as "Jack,") following Sam's advice, officially joined his three brothers' business and was sent to Norfolk by older brother Harry to serve as Warner's assistant.
Formation of Warner Bros. In 1910, the Warner brothers pooled their resources and moved into film production. After they sold their business, the brothers lent their support to filmmaker
Carl Laemmle's
Independent Moving Pictures Company, which challenged the monopolistic control of the Edison Trust; the brothers served as distributors for Laemmle's films in Pittsburgh. In the wake of this success, Harry Warner, seeing Edison's monopoly threat grow, decided to break with Laemmle After this occurred, Harry Warner, who now had an office in New York with brother Albert, sent Sam and Jack to establish film exchanges in
Los Angeles and
San Francisco; Profits from the success of
My Four Years in Germany gave the four brothers the opportunity to establish a studio in the area near
Hollywood. In the new Hollywood studio, Warner became co-head of production along with his younger brother, Jack. In this capacity, the two brothers secured new scripts and storylines, managed film production, and looked for ways to reduce production costs. During this time, banker Motley H. Flint—who, unlike most bankers at the time, was not
antisemitic— helped the Warners pay off their debts. The studio would also rebound in 1921, after the success of the studio's film
Why Girls Leave Home. With the film's success, director
Harry Rapf was appointed the studio's new head producer.
Warner Bros. Pictures, Inc. was officially established. One of the new company's first big stars would be the dog
Rin Tin Tin. By directing Rin Tin Tin, newcomer director
Daryl Zanuck's career would be greatly advanced. In addition to Rin Tin Tin, the studio was also able to gain more success with German film director
Ernst Lubitsch, whose first film with the studio,
The Marriage Circle, reached the New York Times Ten Best Films List of 1924. The film was also the studio's most financially successful film of the year The Warners were also able to add another film to the New York Times Ten Best Films List with
Beau Brummel. Despite the studio's success, the Warners were unable to compete with
Paramount,
Universal, and
First National (The Big Three), and were soon threatened to be bought out by the end of 1924. During this time, Harry Warner would provide more relief for the studio after he was able to purchase Brooklyn's
Vitagraph Studios. In 1925, Sam Warner had also acquired a radio station,
KFWB. After acquiring the radio station, Sam decided to make an attempt to use synchronized sound in future Warner Bros. Pictures. After a visit to Western Electric's Bell Laboratories headquarters, Sam Warner urged his brother, Harry, to sign an agreement with
Western Electric to develop a series of "talking" shorts using the newly upgraded
sound-on-film technology, a sound-on-disc system for motion pictures. Harry Warner, however, objected to using synchronized sound in the studio's films. By February 1926, the studio had suffered a net loss of $333,413. Harry Warner ultimately agreed to use synchronized sound in Warner Bros. shorts if it was used only for
background music. Harry Warner then made a visit to Western Electric's Bell Laboratories in New York and was impressed. One problem confronting the Warners though was that the high-ups at Western Electric were antisemitic. Warner and younger brother Jack then decided to take a big step forward and make
Don Juan. In May 1926, through the company's partnership with Western Electric, Sam formed a subsidiary known as
Vitaphone. Through Vitaphone, the studio released a series of musical shorts and the feature-length
Don Juan (which had a synchronized music track); upon establishing Vitaphone, Sam was also made Vice President of Warner Bros. These vehicles received further tepid responses, and Harry grew increasingly opposed to the venture. Around this time, Paramount head Adolph Zukor offered Sam a deal as an executive producer for his studio if he brought Vitaphone with him; during the year, Harry had also become the company president. Sam Warner, not wanting to take any more of brother Harry's refusal to move forward with using sound in future Warner films, agreed to accept Zukor's offer, but the deal between them died after Paramount lost money in the wake of
Rudolph Valentino's death. Harry Warner eventually agreed to accept Sam's demands. The Warner brothers pushed ahead with
The Jazz Singer, a new Vitaphone feature based on a Broadway play and starring
Al Jolson.
The Jazz Singer broke box-office records, establishing Warner Bros. as a major player in Hollywood and single-handedly launching the talkie revolution. ==Personal life==