The studio system was made up of 5 major studios that ended up going through a lot of crisis through the 1960’s. They were almost like their own little towns. Many things led up the financial crisis they faced in the downfall if the Studio systems. One major problem that came about was in 1940 when the Supreme Court ruled that the private theaters, which were owned by some of those major studios that they were restricted from Block Booking which in turn made those studios have to sell their theaters. Another thing that made it tough for the Movie industry was when television became more popular. T.V. became more appealing to the viewer which made for another downfall for the movie industry. A big thing that happened in the 1930’s and 40’s,