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In the United States the Kinetoscope installation business had reached the saturation point by the summer of 1895, although it was still quite profitable for Edison as a supplier of films. Raff and Gammon persuaded Edison to buy the rights to a state-of-the-art projector, developed by Thomas Armat of Washington, D.C., which incorporated a superior intermittent movement mechanism and a loop-forming device (known as the Latham loop, after its earliest promoters, Grey Latham and Otway Latham) to reduce film breakage, and in early 1896 Edison began to manufacture and market this machine as his own invention.

Given its first public demonstration on April 23, 1896, at Koster and Bial’s Music Hall in New York City, the Edison Vitascope brought projection to the United States and established the format for American film exhibition for the next several years. It also encouraged the activities of such successful Edison rivals as the American Mutoscope and Biograph Company, which was formed in 1896 to exploit the Mutoscope peep-show device and the American Biograph camera and projector patented by W.K.L. Dickson in 1896. During this time, which has been characterized as the “novelty period,” emphasis fell on the projection device itself, and films achieved their main popularity as self-contained vaudeville attractions. Vaudeville houses, locked in intense competition at the turn of the century, headlined the name of the machines rather than the films (e.g., “The Vitascope—Edison’s Latest Marvel,” “The Amazing Cinématographe”). The producer, or manufacturer, supplied projectors along with an operator and a program of shorts.

Starting about 1897, however, manufacturers began to sell both projectors and films to itinerant exhibitors who traveled with their programs from one temporary location (vaudeville theatres, fairgrounds, circus tents, lyceums) to another as the novelty of their films wore off at a given site. This new mode of screening by circuit marked the first separation of exhibition from production and gave the exhibitors a large measure of control over early film form, since they were responsible for arranging the one-shot films purchased from the producers into audience-pleasing programs. The putting together of these programs—which often involved narration, sound effects, and music—was in effect a primitive form of editing, so that it is possible to regard the itinerant projectionists working between 1896 and 1904 as the earliest directors of motion pictures. Several of them, notably Edwin S. Porter, were, in fact, hired as directors by production companies after the industry stabilized in the first decade of the 20th century.
     
 
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