[citation needed] A releasing and distribution company, Mutual also had numerous subsidiary production units, including Keystone Studios, famed producer of comedies.

Mutual is celebrated for signing Charlie Chaplin in 1916; he produced some of his best comedies while working for the company.,[5]: 996  although he felt that the company's tight production schedules led to the films becoming increasingly formulaic.

[8] Shortly after this decision, cities began to pass ordinances banning the public exhibition of "immoral" films, concerning the major studios that state or federal regulations would soon follow.

Chaplin subsequently recognised this period of film-making as the most inventive and liberating of his career, although he also had concerns that the films produced were increasingly formulaic during the length of his contract.

Like many other companies established at this time, Mutual was eventually absorbed by larger corporations, in this case Film Booking Offices of America and later RKO Radio Pictures.