The Paramount Decision of 1948 led to Hollywood studios giving up their theaters, causing a significant industry crisis.
The piece of legislation that demanded Hollywood studios give up their theaters and caused a crisis in the industry was the Paramount Decision of 1948. This antitrust case mandated competition and forced the studios to relinquish control over theater chains, leading to a significant shift in the Hollywood landscape.
This decision marked the end of the powerful studio system era, where studios like Warner Bros., Paramount, and others controlled every aspect of movie production, distribution, and exhibition. The aftermath of the Paramount Decision ultimately led to the decline of the studio system and the rise of new dynamics in the American film industry.
Additionally, the Communications Act of 1934 played a role in overseeing broadcast materials and airwaves, although it was not directly responsible for the crisis faced by Hollywood studios as the Paramount Decision was.
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