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The original studio system, epitomized by MGM, Paramount, Warner Bros., 20th Century Fox, and RKO (the “Big Five”), was characterized by vertical integration. These studios owned production facilities, distribution networks, and exhibition chains (movie theaters). Actors, directors, and writers were under long-term, restrictive contracts. The system produced a standardized, high-volume output with a distinctive “house style.” This oligopoly was shattered by the 1948 United States v. Paramount Pictures, Inc. ruling, which forced the divestiture of theater chains, effectively ending the classical system.

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