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 harmony with lower court rulings, the Supreme Court found that major movie studios had suppressed competition through their theater influence. In its 1948 ruling, it required the removal of block booking and separated theater holdings from production/distribution. Without control over block booking, studios were concerned they couldn't mandate theaters to purchase up to 400 movies annually.