History MediaNotes / FallOfTheStudioSystem

Far more important, the [[NewMediaAreEvil new medium]] of {{UsefulNotes/television}} was also placing growing pressure on the industry. The days of {{film serial}}s and {{newsreel}}s that ran before and between movies quickly came to an end as short subjects, news programs, and cartoons migrated to TV. Late-night television became popular for reruns of old movies, which helped revive interest in MediaNotes/TheSilentAgeOfHollywood but did nothing to pull audiences into movie theaters. The studios reacted to this competition by filming a greater share of their movies in color (color television in the 1950s was seen as rather laughable [[note]]Creator/{{NBC}} was the only network to really invest in color television due to its ownership by its creator, RCA. The other networks were either unwilling to indirectly support a rival (Creator/{{CBS}}, whose mechanical color TV system had lost out to RCA's system) or didn't have the budget for it (Creator/{{ABC}}, Creator/{{DuMont}}). RCA was also the only major TV set manufacturer to persist with offering color sets; while several manufacturers offered color sets when color broadcasting began in 1954, poor sales of the expensive sets (over $1000 in 1954 money!) had forced almost all of them save RCA off the color market by 1959.[[/note]]), and introduced numerous innovations (including widescreen projection and stereo sound) and gimmicks ([[Platform/ThreeDMovie 3-D movies]], "roadshow" booking and countless others) to pull customers back and provide them with an experience that television could not. The culmination of this effort was the rise of the EpicMovie, the multi-million-dollar, three-hour-long (including {{intermission}}), cast-of-thousands epic that ''had'' to be seen in theaters to be properly enjoyed. Even then, however, television was proving to be a nearly unstoppable juggernaut, and moviegoers were bleeding away to television at a rapid pace. Weekly attendance would fall from a peak of 90 million in 1948, the first year of true national television, to roughly half that in 1953, where it would stabilize for the next decade.

UsefulNotes/TheGoldenAgeOfHollywood could not last forever. A number of outside forces were conspiring to make it impossible for the studio system to continue for more than a few decades in the [[UsefulNotes/WorldWarII post-war]] era. This is the Fall of the Studio System, a period of time stretching from roughly the late 1940s to the mid 1960s.

The need for UsefulNotes/TheHaysCode was the next to go. The ''Paramount'' decision had already weakened it by causing the rise of independent "art-house" theaters that could show foreign and independent films that weren't covered by the Code. The real crippling blow to film censorship, however, was another landmark Supreme Court decision, the 1952 case of ''[[http://en.wikipedia.org/wiki/Joseph_Burstyn,_Inc._v._Wilson Joseph Burstyn, Inc. v. Wilson]]'', also known as the [[MeaningfulName Miracle Decision]] after the name of the film, ''The Miracle'' by Creator/RobertoRossellini. That film had controversial Catholic imagery and themes, with an ironic reworking of the Virgin Birth. The Miracle Decision declared that film was an artistic medium protected under the First Amendment, thereby eliminating the threat of government censorship that had led to the implementation of the Code in the first place. Since there was still no [[UsefulNotes/MediaClassifications film ratings system]] other than the unofficial one of the [[MoralGuardians National Legion of Decency]] (whose influence was on the wane by the time TheSixties rolled around), films would be billed as [[RatedMForMoney "Recommended for Adults Only,"]] and more and more theater chains were willing to show them. The tide in Hollywood was turning against censorship.[[note]]Ironically, this was the same time it was turning in the exact opposite direction in [[UsefulNotes/TheComicsCode another medium]].[[/note]]

Except, however, for [[WitchHunt one particular]] [[DirtyCommunists type of censorship]]. The post-war period was the age of America's Second RedScare[[note]] The first happened immediately after UsefulNotes/WorldWarI.[[/note]], and people started fearing that the entertainment industry was being infiltrated and turned into a Communist PropagandaMachine by leftists and Soviet sympathizers. A widely-varying (depending on the source) number of screenwriters, actors, and directors with suspect political views suddenly found their careers in the American film industry yanked out from under them in UsefulNotes/TheHollywoodBlacklist of TheFifties. Another 151 people were named by the right-wing pamphlet ''Red Channels'', published by the anti-Communist group AWARE, as Communist subversives; these people likewise found themselves effectively barred from working in film, radio, or television. A fair number of the people who were blacklisted would continue to find work in Britain -- a point that will become relevant later. As TheFifties wore on, the entertainment industry struck back against the RedScare; the 1956 Creator/BetteDavis film ''Film/StormCenter'' was one of the first to directly target anti-Communist hysteria, and in 1957, {{radio}} host John Henry Faulk sued AWARE for ruining his career (winning his case in 1962).

Far more important, the [[NewMediaAreEvil new medium]] of {{UsefulNotes/television}} was also placing growing pressure on the industry. The days of {{film serial}}s and {{newsreel}}s that ran before and between movies quickly came to an end as short subjects, news programs, and cartoons migrated to TV. Late-night television became popular for reruns of old movies, which helped revive interest in UsefulNotes/TheSilentAgeOfHollywood but did nothing to pull audiences into movie theaters. The studios reacted to this competition by filming a greater share of their movies in color (color television in the 1950s was seen as rather laughable [[note]]Creator/{{NBC}} was the only network to really invest in color television due to its ownership by its creator, RCA. The other networks were either unwilling to indirectly support a rival (Creator/{{CBS}}, whose mechanical color TV system had lost out to RCA's system) or didn't have the budget for it (Creator/{{ABC}}, Creator/{{DuMont}}). RCA was also the only major TV set manufacturer to persist with offering color sets; while several manufacturers offered color sets when color broadcasting began in 1954, poor sales of the expensive sets (over $1000 in 1954 money!) had forced almost all of them save RCA off the color market by 1959.[[/note]]), and introduced numerous innovations (including widescreen projection and stereo sound) and gimmicks ([[UsefulNotes/ThreeDMovie 3-D movies]], "roadshow" booking and countless others) to pull customers back and provide them with an experience that television could not. The culmination of this effort was the rise of the EpicMovie, the multi-million-dollar, three-hour-long (including {{intermission}}), cast-of-thousands epic that ''had'' to be seen in theaters to be properly enjoyed. Even then, however, television was proving to be a nearly unstoppable juggernaut, and moviegoers were bleeding away to television at a rapid pace. Weekly attendance would fall from a peak of 90 million in 1948, the first year of true national television, to roughly half that in 1953, where it would stabilize for the next decade.

The final nail in the coffin of the studio system was the rise of foreign cinema in the late Fifties and into TheSixties. By now, the Hays Code had far less authority in Hollywood thanks to the Paramount and Miracle Decisions, loosening restrictions, and the general public, the studios, and even the Church (Catholic and Protestant) pulling their support, thus leaving a massive opening for foreign filmmakers and studios to eat up lots of market share. Italy had already made the Code look ridiculous with the 1948 classic ''Film/BicycleThieves'' (which the Code tried to censor because it had a completely sexless scene in a brothel), and it followed that up by unleashing "{{Spaghetti Western}}s" that [[GenreDeconstruction deconstructed]] one of Hollywood's [[TheWestern most cherished genres]]. The UsefulNotes/FrenchNewWave, with such masters as Creator/FrancoisTruffaut, was breaking all of the conventions of filmmaking and cinematic form, to immense critical acclaim. Japanese cinema, led by the popular ''Franchise/{{Godzilla}}'' (albeit thanks to a [[Film/GodzillaKingOfTheMonsters1956 Americanized edit]] of the [[Film/{{Gojira}} original film]]) and the lavishly lauded and [[Film/AFistfulOfDollars much]]- [[Film/TheMagnificentSeven1960 imitated]] works of Creator/AkiraKurosawa, was also making a splash stateside.

The biggest threat to Hollywood dominance, however, came from Britain. As it had done in music, UsefulNotes/TheBritishInvasion was sweeping over the film world as well. Such works as the ''Film/JamesBond'' movies, the output of [[Film/HammerHorror Hammer Film Productions]], the [[Music/TheBeatles Beatles]] films ''Film/AHardDaysNight'' and ''Film/{{Help}}'', and others spoke to a generation of young Americans in the swinging, countercultural 1960s. Meanwhile, British period dramas like ''Film/LawrenceOfArabia'' and ''Film/{{Zulu}}'' showed that Hollywood no longer had a monopoly on epic filmmaking. Out of ten [[UsefulNotes/AcademyAward Best Picture]] winners in TheSixties, four[[note]]''Lawrence of Arabia'' in 1962, ''Film/TomJones'' in '63, ''Theatre/AManForAllSeasons'' in '66, and ''Film/{{Oliver}}'' in '68[[/note]] were British films. And there was little Hollywood could do in response. Finally, in 1965, the landmark Supreme Court decision Freedman v. Maryland ended the ability to attempt any censorship (much less banning) of any films, leading to the main enforcers of the Code, the Hays Office, and fellow censorship enforcer the Protestant Film Office to finally shut down, finally ending the 31 year existence of the Hays Code. In 1966, Jack Valenti was elected as MPAA president and replaced the Code with a ratings system that, in theory, would allow filmmakers to make their stories the way they wanted to without the fear of censorship and allow to parents to be informed of the content within said films. The ratings system came into effect in 1968 and, while it has changed slightly over the years, is still in use today.

The decentralization in the studio system often gave directors, screenwriters, and producers more leg room to make films their way, even if they still had to contend with UsefulNotes/TheHaysCode on its last legs in the late 50's and early 60's. UsefulNotes/TheAuteurTheory was first developed during this time by the UsefulNotes/FrenchNewWave, and had a major impact on many of the star filmmakers whose careers exploded in the '70s. The New Wave pointed out that in the post-war era, there were several filmmakers who brought a fresh GenreBusting approach to American cinema. This period saw old masters like Creator/JohnFord, Creator/HowardHawks, and Creator/AlfredHitchcock making mature works like ''Film/TheSearchers'', ''Film/RioBravo'', and ''Film/{{Vertigo}}'', films which often challenged or contrasted against their more well-known style, which were often much darker and bleaker than their films made in the 1930s and 1940s. In addition, there was a new generation of adventurous filmmakers such as Creator/EliaKazan, Creator/NicholasRay, Creator/SamuelFuller, Budd Boetticher, Creator/FrankTashlin, Richard Fleischer, Anthony Mann, Raoul Walsh, Vincente Minnelli, Creator/DouglasSirk, and Creator/OttoPreminger, who pushed the envelope further and further in terms of visual style, acting style, realism, and stylized lighting. Kazan, Preminger, and Creator/BillyWilder in particular were especially bold in challenging the censorship of the time, and broke barriers in terms of restriction of sexual content.

Even so, however, many of these positive developments were happening in the background, and would take time to bear fruit. Meanwhile, the fruits of Hollywood's over-reliance on formula and "sure bets", its struggles to keep up with the times, and its gimmicky attempts to compete with television were already ripening and rotting in front of them. By the mid-late '60s, the American film industry had collapsed under its own weight, toppled by bloated budgets, diminishing returns, stale product, and huge losses in market share to TV, independents, and foreign cinema. Theatrical attendance, after years of stagnation, finally collapsed in the second half of the '60s, plunging from 45 million people a week in 1965 to just 19 million four years later. [[UsefulNotes/NewHollywood Someone had to do something to stop the decline...]]

On a somewhat related note, American animation was also facing a steep decline during this period; for more information, see UsefulNotes/TheDarkAgeOfAnimation.

Except, however, for [[WitchHunt one particular]] [[DirtyCommunists type of censorship]]. The post-war period was the age of America's Second RedScare[[note]] The first happened immediately after UsefulNotes/WorldWarI.[[/note]], and people started fearing that the entertainment industry was being infiltrated and turned into a Communist PropagandaMachine by leftists and Soviet sympathizers. A widely-varying (depending on the source) number of screenwriters, actors, and directors with suspect political views suddenly found their careers in the American film industry yanked out from under them in UsefulNotes/TheHollywoodBlacklist of TheFifties. Another 151 people were named by the right-wing pamphlet ''Red Channels'', published by the anti-Communist group AWARE, as Communist subversives; these people likewise found themselves effectively barred from working in film, radio, or television. A fair number of the people who were blacklisted would continue to find work in Britain -- a point that will become relevant later. As TheFifties wore on, the entertainment industry struck back against the RedScare; the 1956 Creator/BetteDavis film ''Storm Center'' was one of the first to directly target anti-Communist hysteria, and in 1957, {{radio}} host John Henry Faulk sued AWARE for ruining his career (winning his case in 1962).

The biggest threat to Hollywood dominance, however, came from Britain. As it had done in music, UsefulNotes/TheBritishInvasion was sweeping over the film world as well. Such works as the ''Film/JamesBond'' movies, the output of [[Film/HammerHorror Hammer Film Productions]], the [[Music/TheBeatles Beatles]] films ''Film/AHardDaysNight'' and ''Film/{{Help}}'', and others spoke to a generation of young Americans in the swinging, countercultural 1960s. Meanwhile, British period dramas like ''Film/LawrenceOfArabia'' and ''Film/{{Zulu}}'' showed that Hollywood no longer had a monopoly on epic filmmaking. Out of ten [[UsefulNotes/AcademyAward Best Picture]] winners in TheSixties, four[[note]]''Lawrence of Arabia'' in 1962, ''Film/TomJones'' in '63, ''Theatre/AManForAllSeasons'' in '66, and ''Film/{{Oliver}}'' in '68[[/note]] were British films. And there was little Hollywood could do in response. Finally, in 1965, the landmark Supreme Court decision Freedman v. Maryland ended the ability to attempt any censorship (much less banning) of any films, leading to the enforcer of the Code, the Hays Office, and fellow censorship enforcer the Protestant Film Office to finally shut down, finally ending the 31 year existence of the Hays Code. In 1966, Jack Valenti ([[WesternAnimation/{{Freakazoid}} and his cheeks]]) was elected as MPAA president and replaced the Code with a ratings system which, in theory, would allow filmmakers to make their stories the way they wanted to without the fear of censorship and allow to parents to be informed of the content within said films. The ratings system came into effect in 1968 and, while it has changed slightly over the years, is still in use today.

[[caption-width-right:360:Welcome to... "Hullywo d".[[note]]No, that is not a shot from a DisasterMovie -- the Hollywood Sign really had fallen into such disrepair by TheSeventies.[[/note]]]]

Hollywood did not take the fall of the studio system well. While the smaller studios {{Creator/Columbia|Pictures}} and Creator/UnitedArtists thrived in the new climate, quickly gaining market share and becoming the most profitable studios in Hollywood, most of the Big Five struggled to survive. The hardest-hit studio was Creator/RKORadioPictures, historically the weakest of the Big Five, which fell apart under the mismanagement of [[PromotedFanboy Howard Hughes]]. By 1958, RKO's only hope of survival lay in a proposed merger with B-studios Creator/RepublicPictures and Creator/AlliedArtists; the merger fell through, and both RKO and Republic left the movie business entirely. The other studios also faced a slow decline, and many of them found themselves getting bought out. The major studios all but abandoned the production of {{B movie}}s to independent filmmakers and minor studios, focusing instead on smaller numbers of bigger-budgeted pictures. When these {{Epic Movie}}s succeeded, it was all well and good, but when they flopped (as was [[Film/{{Cleopatra}} known to happen]] on occasion), it vindicated the old saying about putting all of your eggs into one basket. Meanwhile, [[Creator/{{Disney}} the House that Mickey Built]] entered the live-action film business, ended its partnersip with RKO and founded the Buena Vista Film Distribution Company in ordeer to add to its fast-growing empire in 1953. While not considered a major studio at the time due to its focus on family films, Disney was still able to snatch up significant market share with films like ''[[Film/TwentyThousandLeaguesUnderTheSea 20,000 Leagues Under the Sea]]'' and ''Film/MaryPoppins''.

The final nail in the coffin of the studio system was the rise of foreign cinema in the late Fifties and into TheSixties. By now the Hays Code had far less authority in Hollywood thanks to the Paramount and Miracle Decisions, the general public, the big studios, and even the Church (Catholic and Protestant) pulling their support, and loosening restrictions, thus leaving a massive opening for foreign filmmakers and studios to eat up lots of market share. Italy had already made the Code look ridiculous with the 1948 classic ''Film/BicycleThieves'' (which the Code tried to censor because it had a completely sexless scene in a brothel), and it followed that up by unleashing "{{Spaghetti Western}}s" that [[GenreDeconstruction deconstructed]] one of Hollywood's [[TheWestern most cherished genres]]. The UsefulNotes/FrenchNewWave, with such masters as Creator/FrancoisTruffaut, was breaking all of the conventions of filmmaking and cinematic form, to immense critical acclaim. Japanese cinema, led by the popular ''Franchise/{{Godzilla}}'' (albeit thanks to a [[Film/GodzillaKingOfTheMonsters1956 Americanized edit]] of the [[Film/{{Gojira}} original film]]) and the lavishly lauded and [[Film/AFistfulOfDollars much]]- [[Film/TheMagnificentSeven1960 imitated]] works of Creator/AkiraKurosawa, was also making a splash stateside.

The biggest threat to Hollywood dominance, however, came from Britain. As it had done in music, UsefulNotes/TheBritishInvasion was sweeping over the film world as well. Such works as the ''Film/JamesBond'' movies, the output of [[Film/HammerHorror Hammer Film Productions]], the [[Music/TheBeatles Beatles]] films ''Film/AHardDaysNight'' and ''Film/{{Help}}'', and others spoke to a generation of young Americans in the swinging, countercultural 1960s. Meanwhile, British period dramas like ''Film/LawrenceOfArabia'' and ''Film/{{Zulu}}'' showed that Hollywood no longer had a monopoly on epic filmmaking. Out of ten [[UsefulNotes/AcademyAward Best Picture]] winners in TheSixties, four[[note]]''Lawrence of Arabia'' in 1962, ''Film/TomJones'' in '63, ''Theatre/AManForAllSeasons'' in '66, and ''Film/{{Oliver}}'' in '68[[/note]] were British films. And there was little Hollywood could do in response. Finally, in 1965, the landmark Supreme Court decision Freedman v. Maryland ended the ability to attempt any censorship (much less banning) of any films, leading to both of the biggest enforces of the Code, the Hays Office and the Protestant Film Office, to finally shut down, finally ended the Hays Code after 31 years of existance. In 1966, Jack Valenti ([[WesternAnimation/{{Freakazoid}} and his cheeks]]) was elected as MPAA president and replaced the Code with a ratings system which, in theory, would allow filmmakers to make their stories the way they wanted to without the fear of censorship and allow to parents to be informed of the content within said films. The ratings system came into effect in 1968 and, while it has changed slightly over the years, is still in use today.

The final nail in the coffin of the studio system was the rise of foreign cinema in TheSixties. Despite the Miracle Decision, Hollywood was still bound by the outdated, self-imposed terms of UsefulNotes/TheHaysCode, which meant that there was a long list of topics and themes that it couldn't touch, although by now it had far less authority thanks to the Miracle Decision. This left a massive opening for foreign filmmakers and studios to eat up lots of market share. Italy had already made the Code look ridiculous with the 1948 classic ''Film/BicycleThieves'' (which the Code tried to censor because it had a completely sexless scene in a brothel), and it followed that up by unleashing "{{Spaghetti Western}}s" that [[GenreDeconstruction deconstructed]] one of Hollywood's [[TheWestern most cherished genres]]. The UsefulNotes/FrenchNewWave, with such masters as Creator/FrancoisTruffaut, was breaking all of the conventions of filmmaking and cinematic form, to immense critical acclaim. Japanese cinema, led by the popular ''Franchise/{{Godzilla}}'' (albeit thanks to a [[Film/GodzillaKingOfTheMonsters1956 Americanized edit]] of the [[Film/{{Gojira}} original film]]) and the lavishly lauded and [[Film/AFistfulOfDollars much]]- [[Film/TheMagnificentSeven1960 imitated]] works of Creator/AkiraKurosawa, was also making a splash stateside.

The biggest threat to Hollywood dominance, however, came from Britain. As it had done in music, UsefulNotes/TheBritishInvasion was sweeping over the film world as well. Such works as the ''Film/JamesBond'' movies, the output of [[Film/HammerHorror Hammer Film Productions]], the [[Music/TheBeatles Beatles]] films ''Film/AHardDaysNight'' and ''Film/{{Help}}'', and others spoke to a generation of young Americans in the swinging, countercultural 1960s. Meanwhile, British period dramas like ''Film/LawrenceOfArabia'' and ''Film/{{Zulu}}'' showed that Hollywood no longer had a monopoly on epic filmmaking. Out of ten [[UsefulNotes/AcademyAward Best Picture]] winners in TheSixties, four[[note]]''Lawrence of Arabia'' in 1962, ''Film/TomJones'' in '63, ''Theatre/AManForAllSeasons'' in '66, and ''Film/{{Oliver}}'' in '68[[/note]] were British films. And there was little Hollywood could do in response. Finally, in 1965, the landmark Supreme Court decision Freedman v. Maryland ended the ability for the Code to attempt any censorship (much less banning) of any films, leading to the enforces of the Code, the Hays Office, to shut down. In 1966, Jack Valenti ([[WesternAnimation/{{Freakazoid}} and his cheeks]]) was elected as MPAA president and replaced the Code with a ratings system which, in theory, would allow filmmakers to make their stories the way they wanted to without the fear of censorship and allow to parents to be informed of the content within said films. The ratings system came into effect in 1968 and, while it has changed slightly over the years, is still in use today.

The biggest threat to Hollywood dominance, however, came from Britain. As it had done in music, UsefulNotes/TheBritishInvasion was sweeping over the film world as well. Such works as the ''Film/JamesBond'' movies, the output of [[Film/HammerHorror Hammer Film Productions]], the [[Music/TheBeatles Beatles]] films ''Film/AHardDaysNight'' and ''Film/{{Help}}'', and others spoke to a generation of young Americans in the swinging, countercultural 1960s. Meanwhile, British period dramas like ''Film/LawrenceOfArabia'' and ''Film/{{Zulu}}'' showed that Hollywood no longer had a monopoly on epic filmmaking. Out of ten [[UsefulNotes/AcademyAward Best Picture]] winners in TheSixties, four[[note]]''Lawrence of Arabia'' in 1962, ''Film/TomJones'' in '63, ''Theatre/AManForAllSeasons'' in '66, and ''Film/{{Oliver}}'' in '68[[/note]] were British films. And there was little Hollywood could do in response. Finally, in 1965, the landmark Supreme Court decision Freedman v. Maryland ended the ability for the Code to attempt any censorship (much less banning) of any films, leading to the enforces of the Code, the Hays Office, to shut down. In 1966, Jack Valenti was elected as MPAA president and replaced the Code with a ratings system which, in theory, would allow filmmakers to make their stories the way they wanted to without the fear of censorship and allow to parents to be informed of the content within said films. The ratings system came into effect in 1968 and, while it has changed slightly over the years, is still in use to today.

UsefulNotes/TheGoldenAgeOfHollywood could not last forever. A number of outside forces were conspiring to make it impossible for the studio system to continue for more than a few decades in the [[UsefulNotes/WorldWarII post-war]] era. This is the Fall of the Studio System, a period of time stretching from roughly the late 1940s to the late 1960s.

The biggest threat to Hollywood dominance, however, came from Britain. As it had done in music, UsefulNotes/TheBritishInvasion was sweeping over the film world as well. Such works as the ''Film/JamesBond'' movies, the output of [[Film/HammerHorror Hammer Film Productions]], the [[Music/TheBeatles Beatles]] films ''Film/AHardDaysNight'' and ''Film/{{Help}}'', and others spoke to a generation of young Americans in the swinging, countercultural 1960s. Meanwhile, British period dramas like ''Film/LawrenceOfArabia'' and ''Film/{{Zulu}}'' showed that Hollywood no longer had a monopoly on epic filmmaking. Out of ten [[UsefulNotes/AcademyAward Best Picture]] winners in TheSixties, four[[note]]''Lawrence of Arabia'' in 1962, ''Film/TomJones'' in '63, ''Theatre/AManForAllSeasons'' in '66, and ''Film/{{Oliver}}'' in '68[[/note]] were British films. And there was little Hollywood could do in response.

The decentralization in the studio system often gave directors, screenwriters, and producers more leg room to make films their way, even if they still had to contend with UsefulNotes/TheHaysCode on its last legs. UsefulNotes/TheAuteurTheory was first developed during this time by the UsefulNotes/FrenchNewWave, and had a major impact on many of the star filmmakers whose careers exploded in the '70s. The New Wave pointed out that in the post-war era, there were several filmmakers who brought a fresh GenreBusting approach to American cinema. This period saw old masters like Creator/JohnFord, Creator/HowardHawks, and Creator/AlfredHitchcock making mature works like ''Film/TheSearchers'', ''Film/RioBravo'', and ''Film/{{Vertigo}}'', films which often challenged or contrasted against their more well-known style, which were often much darker and bleaker than their films made in the 1930s and 1940s. In addition, there was a new generation of adventurous filmmakers such as Creator/EliaKazan, Creator/NicholasRay, Creator/SamuelFuller, Budd Boetticher, Creator/FrankTashlin, Richard Fleischer, Anthony Mann, Raoul Walsh, Vincente Minnelli, Creator/DouglasSirk, and Creator/OttoPreminger, who pushed the envelope further and further in terms of visual style, acting style, realism, and stylized lighting. Kazan, Preminger, and Creator/BillyWilder in particular were especially bold in challenging the censorship of the time, and broke barriers in terms of restriction of sexual content.

Hollywood did not take the fall of the studio system well. While the smaller studios {{Creator/Columbia|Pictures}} and Creator/UnitedArtists thrived in the new climate, quickly gaining market share and becoming the most profitable studios in Hollywood, most of the Big Five struggled to survive. The hardest-hit studio was Creator/RKORadioPictures, historically the weakest of the Big Five, which fell apart under the mismanagement of [[PromotedFanboy Howard Hughes]]. By 1958, RKO's only hope of survival lay in a proposed merger with B-studios Creator/RepublicPictures and Creator/AlliedArtists; the merger fell through, and both RKO and Republic left the movie business entirely. The other studios also faced a slow decline, and many of them found themselves getting bought out. The major studios all but abandoned the production of {{B movie}}s to independent filmmakers and minor studios, focusing instead on smaller numbers of bigger-budgeted pictures. When these {{Epic Movie}}s succeeded, it was all well and good, but when they flopped (as was [[Film/{{Cleopatra}} known to happen]] on occasion), it vindicated the old saying about putting all of your eggs into one basket. Meanwhile, [[Creator/{{Disney}} the House that Mickey Built]] entered the live-action film business, cut its old ties to RKO and added the Buena Vista Film Distribution Company to its fast-growing empire in 1953. While not considered a major studio at the time due to its focus on family films, Disney was still able to snatch up significant market share with films like ''[[Film/TwentyThousandLeaguesUnderTheSea 20,000 Leagues Under the Sea]]'' and ''Film/MaryPoppins''.

The final nail in the coffin of the studio system was the rise of foreign cinema in TheSixties. Despite the Miracle Decision, Hollywood was still bound by the outdated, self-imposed terms of UsefulNotes/TheHaysCode, which meant that there was a long list of topics and themes that it couldn't touch. This left a massive opening for foreign filmmakers and studios to eat up lots of market share. Italy had already made the Code look ridiculous with the 1948 classic ''Film/BicycleThieves'' (which the Code tried to censor because it had a completely sexless scene in a brothel), and it followed that up by unleashing "{{Spaghetti Western}}s" that [[GenreDeconstruction deconstructed]] one of Hollywood's [[TheWestern most cherished genres]]. The UsefulNotes/FrenchNewWave, with such masters as Creator/FrancoisTruffaut, was breaking all of the conventions of filmmaking and cinematic form, to immense critical acclaim. Japanese cinema, led by the popular ''Franchise/{{Godzilla}}'' (albeit thanks to a [[Film/GodzillaKingOfTheMonsters1956 Americanized edit]] of the [[Film/{{Gojira}} original film]]) and the lavishly lauded and [[Film/AFistfulOfDollars much]]- [[Film/TheMagnificentSeven1960 imitated]] works of Creator/AkiraKurosawa, was also making a splash stateside.

The final nail in the coffin of the studio system was the rise of foreign cinema in TheSixties. Despite the Miracle Decision, Hollywood was still bound by the outdated, self-imposed terms of UsefulNotes/TheHaysCode, which meant that there was a long list of topics and themes that it couldn't touch. This left a massive opening for foreign filmmakers and studios to eat up lots of market share. Italy had already made the Code look ridiculous with the 1948 classic ''Film/BicycleThieves'' (which the Code tried to censor because it had a completely sexless scene in a brothel), and it followed that up by unleashing "{{Spaghetti Western}}s" that [[GenreDeconstruction deconstructed]] one of Hollywood's [[TheWestern most cherished genres]]. The French New Wave, with such masters as Creator/FrancoisTruffaut, was breaking all of the conventions of filmmaking and cinematic form, to immense critical acclaim. Japanese cinema, led by the popular ''Franchise/{{Godzilla}}'' (albeit thanks to a [[Film/GodzillaKingOfTheMonsters1956 Americanized edit]] of the [[Film/{{Gojira}} original film]]) and the lavishly lauded and [[Film/AFistfulOfDollars much]]- [[Film/TheMagnificentSeven1960 imitated]] works of Creator/AkiraKurosawa, was also making a splash stateside.

The biggest threat to Hollywood dominance, however, came from Britain. As it had done in music, UsefulNotes/TheBritishInvasion was sweeping over the film world as well. Such works as the ''Film/JamesBond'' movies, the output of [[Film/HammerHorror Hammer Film Productions]], the [[Music/TheBeatles Beatles]] films ''Film/AHardDaysNight'' and ''Film/{{Help}}'', and others spoke to a generation of young Americans in the swinging, countercultural 1960s. Meanwhile, British period dramas like ''Film/LawrenceOfArabia'' and ''Film/{{Zulu}}'' showed that Hollywood no longer had a monopoly on epic filmmaking. Out of ten [[UsefulNotes/AcademyAward Best Picture]] winners in TheSixties, four[[note]]''Lawrence of Arabia'' in 1962, ''Film/TomJones'' in '63, ''Theatre/AManForAllSeasons'' in '66, and ''Theatre/{{Oliver}}'' in '68[[/note]] were British films. And there was little Hollywood could do in response.

The final nail in the coffin of the studio system was the rise of foreign cinema in TheSixties. Despite the Miracle Decision, Hollywood was still bound by the outdated, self-imposed terms of UsefulNotes/TheHaysCode, which meant that there was a long list of topics and themes that it couldn't touch. This left a massive opening for foreign filmmakers and studios to eat up lots of market share. Italy had already made the Code look ridiculous with the 1948 classic ''Film/BicycleThieves'' (which the Code tried to censor because it had a completely sexless scene in a brothel), and it followed that up by unleashing "{{Spaghetti Western}}s" that [[GenreDeconstruction deconstructed]] one of Hollywood's [[TheWestern most cherished genres]]. The French New Wave, with such masters as Creator/FrancoisTruffaut, was breaking all of the conventions of filmmaking and cinematic form, to immense critical acclaim. Japanese cinema, led by the popular ''Franchise/{{Godzilla}}'' (albeit thanks to a [[Film/GodzillaKingOfTheMonsters1956 Americanized edit]] of the [[Film/{{Gojira}} original film]]) and the lavishly lauded and [[Film/AFistfulOfDollars much-]] [[Film/TheMagnificentSeven1960 imitated]] works of Creator/AkiraKurosawa, was also making a splash stateside.

Despite this, the plethora of talent meant that even in the '50s and '60s, Hollywood still produced a volume of great films. Some people, like critic James Harvey (author of ''Movie Love in the Fifties''), have even argued that the '50s were perhaps Hollywood's greatest decade.

Even so, however, many of these positive developments were happening in the background, and would take time to bear fruit. Meanwhile, the fruits of Hollywood's over-reliance on formula and "sure bets", its struggles to keep up with the times, and its gimmicky attempts to compete with television were already ripening and rotting in front of them. By the mid-late '60s, the American film industry had collapsed under its own weight, toppled by bloated budgets, diminishing returns, stale product, and huge losses in market share to TV, independents, and the British. Theatrical attendance, after years of stagnation, finally collapsed in the second half of the '60s, plunging from 45 million people a week in 1965 to just 19 million four years later. [[UsefulNotes/NewHollywood Someone had to do something to stop the decline...]]

The biggest threat to Hollywood dominance, however, came from Britain. As it had done in music, UsefulNotes/TheBritishInvasion was sweeping over the film world as well. Such works as the ''Film/JamesBond'' movies, the output of [[Film/HammerHorror Hammer Film Productions]], the [[Music/TheBeatles Beatles]] films ''Film/AHardDaysNight'' and ''Film/{{Help}}'', and others spoke to a generation of young Americans in the swinging, countercultural 1960s. Meanwhile, British period dramas like ''Film/LawrenceOfArabia'' and ''Film/{{Zulu}}'' showed that Hollywood no longer had a monopoly on epic filmmaking. Out of ten [[UsefulNotes/AcademyAward Best Picture]] winners in TheSixties, four[[note]]''Lawrence of Arabia'' in 1962, ''[[Literature/TheHistoryOfTomJonesAFoundling Tom Jones]]'' in '63, ''Theatre/AManForAllSeasons'' in '66, and ''Theatre/{{Oliver}}'' in '68[[/note]] were British films. And there was little Hollywood could do in response.

Some have argued that the conditions that did so much damage to Hollywood in the short term, such as the loss of control over theatre distribution, actually contributed to the growth of American cinema in the long run. For one thing, it allowed the growth of independent theatre chains which allowed owners to present a wider option of films to show to the American public. This usually meant foreign films, but it also helped independent producers and distributors, who no longer had to deal with studios to screen their films to the average audience. This helped spark the growth of independent cinema and underground cinema, which developed in New York at this time, later leading to the rise of Creator/JohnCassavetes, often hailed as the "Father of American Independent Film". His 1959 film ''Shadows'' was a striking glimpse of American life that dealt with subjects such as the lives of normal African-Americans, an interracial romance, and sexual relationships, with a realism far away from Hollywood's idealized touch. In addition to this, a young ambitious tyro like Creator/StanleyKubrick could more or less become a SelfMadeMan and become a master of film production outside the system, and moreover have his early short newsreels and low-budget independent films find an audience, with which he built a platform into the mainstream, in a way that he would never have managed in the old studio system. The ability of actors and directors to negotiate independent contracts likewise provided them better incentives, such as a percentage of actual gross. This resulted in greater roles played by agents such as Lew Wassermann of MCA, but it also allowed stars to break free of TypeCasting and play darker roles, such as Creator/JamesStewart's films with Anthony Mann and Creator/AlfredHitchcock when he was no longer constrained or typed by his old roles. Creator/BurtLancaster was another star who took advantage of this freedom to produce films such as ''Film/SweetSmellOfSuccess''.

Hollywood did not take the fall of the studio system well. While the smaller studios {{Creator/Columbia|Pictures}} and Creator/UnitedArtists thrived in the new climate, quickly gaining market share and becoming the most profitable studios in Hollywood, most of the Big Five struggled to survive. The hardest-hit studio was Creator/RKORadioPictures, historically the weakest of the Big Five, which fell apart under the mismanagement of [[PromotedFanboy Howard Hughes]]. By 1958, RKO's only hope of survival lay in a proposed merger with B-studios Republic Pictures and Creator/AlliedArtists; the merger fell through, and both RKO and Republic left the movie business entirely. The other studios also faced a slow decline, and many of them found themselves getting bought out. The major studios all but abandoned the production of {{B movie}}s to independent filmmakers and minor studios, focusing instead on smaller numbers of bigger-budgeted pictures. When these {{Epic Movie}}s succeeded, it was all well and good, but when they flopped (as was [[Film/{{Cleopatra}} known to happen]] on occasion), it vindicated the old saying about putting all of your eggs into one basket. Meanwhile, [[Creator/{{Disney}} the House that Mickey Built]] entered the live-action film business, cut its old ties to RKO and added the Buena Vista Film Distribution Company to its fast-growing empire in 1953. While not considered a major studio at the time due to its focus on family films, Disney was still able to snatch up significant market share with films like ''[[Film/TwentyThousandLeaguesUnderTheSea 20,000 Leagues Under the Sea]]'' and ''Film/MaryPoppins''.

UsefulNotes/TheGoldenAgeOfHollywood could not last forever. A number of outside forces were conspiring to make it impossible for the studio system to continue for more than a few decades in the [[UsefulNotes/WorldWarII post-war]] era. This is the Fall Of The Studio System, a period of time stretching from roughly the late 1940s to the late 1960s.

The final nail in the coffin of the studio system was the rise of foreign cinema in TheSixties. Despite the Miracle Decision, Hollywood was still bound by the outdated, self-imposed terms of UsefulNotes/TheHaysCode, which meant that there was a long list of topics and themes that it couldn't touch. This left a massive opening for foreign filmmakers and studios to eat up lots of market share. Italy had already made the Code look ridiculous with the 1948 classic ''Film/BicycleThieves'' (which the Code tried to censor because it had a completely sexless scene in a brothel), and it followed that up by unleashing "{{Spaghetti Western}}s" that [[GenreDeconstruction deconstructed]] one of Hollywood's [[TheWestern most cherished genres]]. The French New Wave, with such masters as Creator/FrancoisTruffaut, was breaking all of the conventions of filmmaking and cinematic form, to immense critical acclaim. Japanese cinema, led by the popular ''Franchise/{{Godzilla}}'' (albeit thanks to a [[Film/GodzillaKingOfTheMonsters1956 Americanized edit]] of the [[Film/{{Gojira}} original film]]) and the lavishly lauded and [[Film/AFistfulOfDollars much-]] [[Film/TheMagnificentSeven imitated]] works of Creator/AkiraKurosawa, was also making a splash stateside.