In concurrence with decisions held by the lower courts, the Supreme Court ruled that all of the major movie studios had prevented domestic and foreign competition through their control over theaters. In its 1948 decision, the Supreme Court ordered the elimination of block booking and demanded a separation of theater holdings from production and distribution. Without control over block booking, studios feared that they could no longer force theaters to buy up to 400 movies each year.
In agreement with lower court rulings, the Supreme Court decided that all major movie studios had suppressed domestic and foreign competition through their theater control. In its 1948 ruling, the Supreme Court mandated the removal of block booking and required a separation between theater holdings and production/distribution. Without the ability to force theaters to purchase up to 400 movies annually, studios were concerned they could no longer exert such influence.