Established in 1853, Hollywood was originally a single adobe hut on land outside Los Angeles, CA. Through successfully growing crops, by 1870 Hollywood was a successful agricultural community.
The name Hollywood came from Henderson Wilcox and his wife Daeida who moved to Los Angeles in the 1880's. Daeida met a woman on a train who described how her home was named after the Dutch settlement of Hollywood. Liking the name, Daeida named their new ranch 'Hollywood'.
By the early 1900's filmmakers began moving to Los Angeles to avoid lawsuits from Thomas Edison's Motion Picture Patents Company in New Jersey. Since most patents were owned by Edison, many filmmakers were often sued to stop their productions. Los Angeles provided a ideal filming location, that was close enough to Mexico that filmmakers could escape should they be sued by Edison.
Without interference from Edison, Los Angeles became increasingly popular and attracted many more filmmakers, who eventually moved into the neighbouring area of Hollywood. Today Hollywoods filmmaking industry accounts for approximately 3.2% of U.S GDP, with a revenue of $504 Billion annually.