.Cinema of England. .Early B ritish cinema.
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After the boom years of the late 1920s and early 1930s, rising expenditure and over-optimistic expansion into the American market caused the production bubble to burst in 1937. Of the 640 British production companies registered between 1925 and 1936, 20 were still going in 1937. Moreover, the 1927 Films Act was up for renewal. The replacement Cinematograph Films Act 1938 provided incentives for UK companies to make fewer films of higher quality and, influenced by world politics, encouraged American investment and imports. One result was the creation by the American company MGM of an English studio MGM-British in Hertfordshire, which produced some very successful films, including A Yank at Oxford (1938) and Goodbye, Mr. Chips (1939), before World War II intervened.