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This is perhaps the most readable book on the founding of Hollywood. http://www.amazon.com/Empire-Their-Own-Invented-Hollywood/dp...

As the subtitle indicates, it has a particular focus on the early Jewish players in the movie business, but it covers all aspects along the way.

As for the decimation of the European industry, that really happened more in WWII than WWI. There's a good documentary mini-series on the early days of the Euro-industry, which ends with the WWII decline.

http://www.amazon.com/Cinema-Europe-Hollywood-Kenneth-Branag...

Apparently out of print now, but worth watching if you can find it.

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