A.A. Khanzhonkov as a Pioneer of the National Film Industry

Abstract

The article provides an analysis on the activity of the first shareholding company in the Russian film industry. The analysis is based on archival documents from the Russian State Archive and the State Achieve of the Republic of Crimea, as well as on published sources, available literature and Khanzhonkov’s own memoirs. The main focus of the text is on managing mechanism of the shareholding company, special attention is paid to the key directions and peculiarities of its activity in the film market of the early 20th century. It was revealed that the production process of documentary and educational films released by the film factory was rather innovative. The research defined the main stakeholders and equity holders, besides it described the life path of the founder of the Shareholding Company at different stages of his life including the Soviet period. One of the conclusions made in the research was the equity-mutual type of the Shareholding Company, when shares were issued and distributed only among the people closest to the equity holders, their relatives and family members and were not presented to the market for general public. This approach provided the management body with complete control over the enterprise, but at the same time the approach limited its development since there were no external investments. As the Board Chairman and Managing Director A. Khanzhonkov sought alternative opportunities to win the national film market without attracting additional outside sources of funding. The key condition for implementing the chosen strategy was the search for opportunities to improve the quality of released film products.