This was because there was discovery of the telescope, a cure for arthritis and even new advancements in astronomy. 2
With all these factors going so well for America; Hollywood home, one would presume that there would be greater opportunities for the studio system. However, this did not happen. 3 The main reasons were that there was a shift from cinema to television4, there was also politics involved and also other managerial and technological reasons came into play. 5 Details of these factors shall be examined below.
In the wake of the country's economic boom, many people could now afford to purchase their own television sets. 6This meant that there was no need for any of them to go to the movies. By the year 1946, cinema attendance had diminished by a whooping 20 million consumers. 7 The studio that felt the highest pinch was the leader at that time; MGM. Before the decline in the Hollywood studio system, most studios were producing about eighteen billion dollars in revenue. However, after the popularisation of television, most studios were now making a mere four billion dollars. 8
There were also other political reasons that affected the Hollywood Studio system in the late forties. Prior to the decline, most studio owners or movie producers had exclusive rights to movie theatres. The five major studios in Hollywood (Fox, Warner's, Paramount, RKO and Lowe's) 9 had the ability to control distribution of their movies through these vested interests in movie theatres. However, The US Justice Department felt that that monopoly was going against the rules of free market and fair competition. 10Therefore, the Attorney General serving at that time gave a notice to the five major studios to appear in court. They were charged with conspiracy in the theatre industry. They were not supposed to control distribution as stated by the government and they were expected to let go of their vested interests in theatres
During their appearances in court, top studio executives agreed to surrender their vested interests in the distribution sector and just after a short while all the big five studios gave up their rights to the movie theatres. 11Most of theses theatres were then sold to other vested interests. Consequently, studio producers had very little revenue to give their actors. Before selling away their theatres, most studios would contract actors for a period of seven years. But after the decline of theatres and studios, it was difficult to make such contracts anymore. Most studios started getting into deficits and they started closing down. 12These results came into play during the sixties. Eventually, the legacy of the Hollywood Studio system came to an end during those fateful years.
Rise of independent movie producers
During the 1960s more and more movie producers would choose locations that were outside Hollywood. They would prefer other countries such as England, Rome and Pinewood. Consequently, most of the equipments needed in studios were exported to the outdoors. This seriously affected the studio system as movie producers no longer considered the studio system as the norm. 13
The situation was made worse by increased competition from some independent movie producers. These movie producers were affiliated to their own movie producing companies and made the Hollywood studio system seem traditional. The