Western entrepreneur, Warwick Major, built the first cinema theatre, the Electric Theatre, which still stands. It was a favourite haunt of the British community in Madras. The theatre was shut down after a few years. This building is now part of a post office complex on Anna Salai (Mount Road).
The Lyric Theatre was also built in the Mount Road area.
Raghupathi Venkaiah Naidu, a successful photographer, took over the equipment after the exhibition and set up a tent cinema near the Madras High Court.
With this equipment, he screened the short films Pearl Fish and Raja's Casket in the Victoria Public Hall. When this proved successful, he screened the films in a tent set up in Esplanade. These tent events were the true precursors of the cinema shows.
Naidu travelled with this unit to Burma (now Myanmar) and Sri Lanka, and when he had gathered enough money, he put up a permanent cinema house in Madras—Gaiety, in 1914, the first cinema house in Madras to be built by an Indian.
He soon added two more, Crown Theatre in Mint and
Globe (later called Roxy) in Purasawalkam
Swamikannu Vincent, who had built one of the first cinema halls of South India in Coimbatore, introduced the concept of "Tent Cinema" in which a tent was erected on a stretch of open land close to a town or village to screen the films. The first of its kind was established in Madras, called "Edison's Grand Cinemamegaphone". This was due to the fact that electric carbons were used for motion picture projectors.
The legendary Otraivadai drama theatre had been built in 1872 itself in Mint. Many drama halls had come up in the city where short silent films were screened in the afternoon and plays were enacted in the night.
Srinivasa Kalyanam (1934), directed by Narayanan, was the first sound film (talkie) produced in Madras. The second sound studio to come up in Madras was Vel Pictures, started by M. D. Rajan on Eldams Road in the Dunmore bungalow, which belonged to the Raja of Pithapuram. Before long, more sound studios came up. Thirty-six talkies were made in Madras in 1935.