Scott Masters's tenure at Catalina Video deteriorated after a management change reduced his influence over casting and production. When Catalina president Mike Merrick eventually purchased the company from founder William Higgins, Masters chose to leave in 1992. Director John Travis departed around the same period following a contract dispute and began working under the name John Trennel. Rather than disappearing from the industry, the two former Catalina figures turned the rupture into a new company: they co-founded Studio 2000 in late 1992. The break also illustrates the unstable employment structure of adult-film studios, where directors could move rapidly between companies, change professional names, and transform a contract fight into a rival production operation. Studio 2000 later became a major award-winning gay adult studio before Masters and Travis sold it to former Falcon Entertainment consultant David McKay in 2006.
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