The studio system was challenged under the anti-trust laws in a 1948 Supreme Court ruling which sought to separate production from the distribution and exhibition and ended such practices, thereby hastening the end of the studio system. By 1954, with television competing for audience and the last of the operational links between a major production studio and theater chain broken, the historic era of the studio system was over.
one of the biggest factors responsible for the collapse of the studio era was
a 1948 Supreme Court ruling which sought to separate production from the distribution and exhibition