10. The Smiling Lieutenant - 1932, directed by Ernst Lubitsch (lost to Grand Hotel)
Back in the early 1930s, the Oscars severed a very different purpose. The studio heads ran the Academy and really handed out the Best Picture awards to stroke their own egos. Paramount was nowhere near as powerful as MGM, so even though it produced three Best Picture nominees for 1931/32, there was no way Irving G. Thalberg's baby, the all-star movie Grand Hotel, wasn't going to win.
But that's no excuse for Ernst Lubitsch's best musical not winning Best Picture. Holy cow, this is one fun movie. Maurice Chevalier is caught in a love triangle with sexy violinist Claudette Colbert and lovestruck princess Miriam Hopkins. Oh, and Colbert sings to Hopkins, “Jazz up your lingerie!” Need I say more?
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