The Threat of TV

Why was Hollywood threatened by television? What were three key reasons it became a threat?

    Hollywood was threatened by television because it would lower the movie industry's profitability. Three key reasons that it became a threat was the changing demands of consumers, it's convenience, and the anti-monopoly rulings and restrictions placed by the U.S. Government. Following WWII, suburban culture became increasingly popular with money saved through the war. Thus people were able to start spending more on consumer goods and thus a demand for televisions rose. This is further pushed by the convenience of having at-home entertainment. Suburban culture made theater palaces less accessible and having a cheap TV in your home discouraged people from going out and spending money to see movies. When big industries tried to break into the television business, the government refused to give licenses to producers that have previously been charged with monopolistic practices (which was most of the big studios). Thus, profits for movies were on a huge decline and producers had to find ways to have more incentives for people to watch films, e.i., airing their films with tv producers or making their films more vulgar as television had strict rules for what they aired.