By 1970 Strasberg had become less involved with the Actors Studio and, with his third wife, Anna, opened the Lee Strasberg Theatre and Film Institute with branches in New York City and in Hollywood, to continue teaching the 'system' of Konstantin Stanislavski, which he had interpreted and developed, particularly in light of the ideas of Yevgeny Vakhtangov, for contemporary actors.
I 1970 blev Strasberg blevet mindre involveret i Actors Studio, og med sin tredje kone Anna åbnede Lee Strasberg Theatre and Film Institute med filialer i New York City og Hollywood for at fortsætte med at undervise i 'Systemet' af Konstantin Stanislavskji, som han havde fortolket og udviklet, især i lyset af de ideer, Yevgeny Vakhtangov, til nutidige skuespillere.