<Tr> <Td_colspan="3">--Harry Cohn of Columbia Pictures, 1957 </Td> </Tr> <P> In the 1950s Hollywood faced three great challenges: The Paramount case ending the studio system, the new popularity of television, and post-World War II consumer spending providing its audience with many other leisure options . The scale of both box office successes and flops grew, with a "dangerous middle" consisting of films that in the previous era would have made money . A filmmaker stated in 1957 that "(t) he one absolute disaster today is to make a million - dollar mediocrity . One of those you can lose not only your total investment but your total shirt ." By that year Hollywood was only making about 300 feature films a year, compared to about 700 during the 1920s . Darryl F. Zanuck, head of 20th Century Fox, had no direct involvement with the studio from 1956 to 1962, and Louis B. Mayer, sacked in 1951 from MGM, died in 1957 . Harry Cohn of Columbia, who died the following year, informed investors in the studio's annual report of 1957 that: </P> <P> We find ourselves in a highly competitive market for (stars, directors, producers, writers). Under today's tax structures, salary to those we are dealing with is less inviting than the opportunity for capital gains . We find ourselves, therefore, dealing with corporations rather than with individuals . We find ourselves, too, forced to deal in terms of a percentage of the film's profits, rather than in a guaranteed salary as in the past . This is most notable among the top stars . </P> <P> Financial backers increasingly demanded star actors, directors, and writers for projects to reduce risk of failure . The growing importance of the overseas market--40 to 50% of Hollywood's total revenue by 1957--also emphasized stars' names as box - office attractions . With their new power, "working for nothing"--receiving a percentage of profit instead of a salary--became a status symbol for stars . A top actor could expect 50% of profit, with a minimum guarantee, or 10% of gross revenue . Cary Grant, for example, received more than $700,000 from his 10% of the gross for To Catch a Thief (1955), while director and producer Alfred Hitchcock received less than $50,000 . In one extreme case, Paramount promised Marlon Brando 75% of the profit of what became One - Eyed Jacks (1961). (Because of Hollywood accounting, studios still received much of the revenue before any profit sharing; thus, they preferred 50% of profit to 10% of gross .) The larger paychecks also increased the power of talent agents such as Lew Wasserman of MCA, whose office was now nicknamed "Fort Knox". </P>

When did the hollywood studio system begin to decline