With his brother Émile, he founded Pathé Frères (Pathé Brothers, 1896) in Paris, a company that manufactured and sold phonographs and phonograph cylinders. The company placed the Kinetoscope, Thomas A. Edison's newly invented viewing device, in theatres throughout France. Using the camera developed by Louis and Auguste Lumière, Pathé Frères filmed numerous short subjects, the majority of which are sensational criminal adventures, melodramatic love stories, and comic anecdotes. In 1909 Pathé produced his first “long film,” Les Misérables, a four-reel screen version of the novel by Victor Hugo. That same year he originated the Pathé Gazette in France (U.S.: 1910; U.K.: 1911), which was an internationally popular newsreel until 1956. In 1914 Pathé Frères released from its studios in the United States the first episodes of The Perils of Pauline, one of the earliest and best remembered screen serials. The company also began publishing the screen magazine Pathé Pictorial.

Pathé Frères, with production facilities in France, England, and the United States and distribution offices throughout the world, was an enormously lucrative company. Profits on some pictures were 50 to 100 times the original cost of production. In 1917 Pathé began to sell the company's equipment, production studios, and exhibition circuits. He retired in 1929, but the company remained in existence as a leading film distributor.