Movie studios previously charged low rents to exhibitors because they were owned by the studio. When the studios were forced to sell th

tion, he rejected the studios' argument that it was necessary to profit from their copyrights: "The copyright law, like the patent statutes, makes reward to the owner a secondary consideration".[10] The prohibitions on discrimination he let stand entirely.
Frankfurter[edit]
Frankfurter took exception to the extent to which his brethren had agreed with the studios that the District Court had not adequately explored the underlying facts in affirming the consent decree. He pointed to another recent Court decision, International Salt Co. v. United States (332 U.S. 392 (1947)) that lower courts are the proper place for such findings of fact, to be deferred to by higher courts.[11] Also, he reminded the Court that the District Court had spent fifteen months considering the case and reviewed almost 4,000 pages of documentary evidence.[12] "I cannot bring myself to conclude that the product of such a painstaking process of adjudication as to a decree appropriate for such a complicated situation as this record discloses was an abuse of discretion", he said.[12] He would have modified the District Court decision only to permit the use of arbitration to resolve disputes.[13]
Consequences[edit]

Movie studios previously charged low rents to exhibitors because they were owned by the studio. When the studios were forced to sell their theaters, the result was higher rental rates charged to exhibitors (rising from an average of approximately 35% to its current level of approximately 50%), so the studios could recoup their expenses.[citation needed] The inability to block-book an entire year's worth of movies caused studios to be more selective in the movies they made, resulting in higher production costs and dramatically fewer movies made. This also caused studios to raise the rates they charged theaters, since the volume of movies fell.
The court orders forcing the separation of motion picture production and exhibition companies are commonly referred to as the Paramount Decrees. Paramount Pictures Inc. was forced to split into two companies: the film company now called Paramount Pictures Corp. and the theater chain (United Paramount Theaters) which merged in 1953 with the American Broadcasting Company (which would be led, with great success, by the now-former United Paramount Theaters boss Leonard Goldenson for decades). Consequences of the decision include:
More independent producers and studios to produce their film product free of major studio interference.
The beginning of the end of the old Hollywood studio system and its golden age.
The weakening of the (Hays) Production Code, since it saw the rise of independent "art house" theaters which showed foreign or independent films made outside of its jurisdiction.
It would also eventually have an adverse effect on the major studios themselves and their film libraries, especially with the rise of television—that would result in some of these libraries being sold to other entities. Paramount itself sold off a majority of its films to MCA, which created EMKA, Ltd. to manage this library. Universal Television, an MCA successor, currently holds this library.
See alsoBuzz Buzzard
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