Basic Theory
Formalism, at its most general, considers the synthesis (or lack of synthesis) of the multiple elements of film production, and the effects, emotional and intellectual, of that synthesis and of the individual elements. For example, take the single element of editing. A formalist might study how standard Hollywood "continuity editing" creates a more comforting effect and non-continuity or jump cut editing might become more disconcerting or volatile.
Or one might consider the synthesis of several elements, such as editing, shot composition, and music. The shoot-out that ends Sergio Leone's Spaghetti Western "Dollars" trilogy is a notable example of how these elements work together to produce an effect: The shot selection goes from very wide to very close and tense; the length of shots decreases as the sequence progresses towards its end; the music builds. All of these elements, in combination rather than individually, create tension.
Formalism is unique in that it embraces both ideological and auteurist branches of criticism. In both these cases, the common denominator for Formalist criticism is style.
Read more about this topic: Formalist Film Theory
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