What major event contributed to the decline of the studio system in the 1960s?

The Paramount Decree of 1948 significantly impacted the motion picture industry and contributed to the decline of the studio system in the following decades. This landmark antitrust case against major film studios mandated major changes in how films were produced and distributed.

Before the decree, the studio system had a tight grip on the production, distribution, and exhibition of films, which allowed studios to control virtually every aspect of a film's journey to audiences. The ruling required the studios to divest themselves of their theater chains, breaking the monopolistic hold that studios had over the entire film industry. Following this, a more fragmented and competitive environment emerged, which diminished the influence of studios that had previously dominated Hollywood.

By the 1960s, this restructuring, combined with shifts in audience preferences, led to a decline in the studio system. Filmmakers began exploring creative storytelling and independent projects, resulting in a transformation in the types of films being made and how they were financed and distributed. This creative shift alongside the increase in independent filmmaking marked a significant turn in the industry and led to a decline in the traditional studio system that had defined Hollywood for decades.