The term culture industry (Kulturindustrie) was coined by the critical theorists Theodor Adorno (1903–1969) and Max Horkheimer (1895–1973), and was presented as critical vocabulary in the chapter "The Culture Industry: Enlightenment as Mass Deception", of the book Dialectic of Enlightenment (1947), wherein they proposed that popular culture is akin to a factory producing standardized cultural goods—films, radio programmes, magazines, etc.—that are used to manipulate mass society into passivity. Consumption of the easy pleasures of popular culture, made available by the mass communications media, renders people docile and content, no matter how difficult their economic circumstances. The inherent danger of the culture industry is the cultivation of false psychological needs that can only be met and satisfied by the products of capitalism; thus Adorno and Horkheimer perceived mass-produced culture as especially dangerous compared to the more technically and intellectually difficult high arts. In contrast, true psychological needs are freedom, creativity, and genuine happiness, which refer to an earlier demarcation of human needs, established by Herbert Marcuse. Members of The Frankfurt School were much influenced by the dialectical materialism and historical materialism of Karl Marx, as well as the revisitation of the dialectical idealism of Hegel; both events are studied not in isolation, but as part of the process of change. As a group later joined by Jürgen Habermas, they were responsible for the formulation of critical theory. In works such as Dialectic of Enlightenment and Negative Dialectics, Adorno and Horkheimer theorized that the phenomenon of mass culture has a political implication, namely that all the many forms of popular culture are parts of a single culture industry whose purpose is to ensure the continued obedience of the masses to market interests. The essay is concerned with the production of cultural content in capitalist societies. It critiques the extortionate nature of cultural economies as well as the apparently inferior products of the system.

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