Peter Jackson uses rich settings in his film The Fellowship of the Ring. Much of what the audience initially learns about hobbits, for example, is through viewing their home, the Shire. Cozy, small homes with well-stocked kitchens and lush, rolling hills clue the audience into their cheery nature, tight-knit community, and love of eating.
Setting helps create atmosphere and provides contextual clues that can’t be stated through dialogue. Because much of film, and storytelling in general, follows the golden rule of “show, don’t tell,” setting helps filmmakers reveal character and plot details in subtle, interesting ways.
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