WWII devastated industry and economies all over Europe and they were in no position to compete with a US film industry that didn’t even slow down during the war. Since the US was the ascendent cultural and economic power and occupying half of Europe it could distribute its culture more easily.
Europe did bounce back with its own film culture in the 50s and 60s but these were small scale, art house films and couldn’t compete with the big spectacle Hollywood films, especially in the US.
edit: In the silent film era, there was more international viewership of cinema, but when talkies started, that went in steep decline, especially in the US.
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