Universal Studios was founded by Carl Laemmle, Mark Dintenfass, Charles O. Baumann, Adam Kessel, Pat Powers, William Swanson, David Horsley, Robert H. Cochrane[a] and Jules Brulatour. One story has Laemmle watching a box office for hours, counting patrons and calculating the day's takings. Within weeks of his Chicago trip, Laemmle gave up dry goods to buy the first several nickelodeons. For Laemmle and other such entrepreneurs, the creation in 1908 of the Edison-backed Motion Picture Trust meant that exhibitors were expected to pay fees for Trust-produced films they showed. Based on the Latham Loop used in cameras and projectors, along with other patents, the Trust collected fees on all aspects of movie production and exhibition, and attempted to enforce a monopoly on distribution.

After a trip to what city did Carl Laemmle leave the dry goods business?