alternatehistory.com

Of course many people at the time realized the idea would be a flop, notably Thomas Edison:

"No, I don’t think the talking moving picture will ever be successful in the United States. Americans prefer silent drama. They are accustomed to the moving picture as it is and they will never get enthusiastic over any voices being mingled in. Yes, there will be a novelty to it for a little while, but the glitter will soon wear off and the movie fans will cry for silence or a little orchestra music.

"I believe the experiments will prove highly successful. I am certain that voices can be reproduced to fit in just the right place with the play on the screen, but the American people do not want it and will not welcome it. We are wasting our time in going on with the project. (Film Daily , 4 March 1927, pp. 1, 2)

http://encyclopedia.jrank.org/artic...g-the-Audience-Warner-Bros-and-Vitaphone.html

I guess they never really recovered from the complete flop of The Jazz Singer with Georgie Jessel...
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