William Higgins had founded Catalina in 1978. In 1987, Masters was hired as head of production for Catalina Video.
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Nova Studios ceased to make gay adult films in late 1986. In 1984, Masters hired Chet Thomas as an editor, and Thomas worked on several of Nova Studios' final films. He added music, some narration, and asynchronous sexual sounds to the films and began re-releasing these to make money.
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Masters began dubbing older silent loops in 1981 as well. But in the intervening two years, Nova Studios lost critical market share. Masters would not finally produce a sound film until 1983. Filming went so poorly that Masters eventually shot most of the film without sound. In 1981, Masters bowed to public demand for sound film and financial pressures and produced It's the Life. Masters attempted to keep Nova Studios afloat by finally producing sound films.
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Masters followed up with a series of long loops: Kept After School, Beached, Tricking, Hot Lunch, Jocks, That Boy Next Door and Down on the Farm. Masters doubled the length of Nova Studios' loops to more than 400 feet, extending each film's running time to nearly 20 minutes. The studio's first production was Tubtricks. In 1976, Masters (still using the name Robert Walters) founded Nova Studios, distributing films through direct mail as well as adult bookstores. But after two years, Masters turned over management of the magazine to a third party (while retaining ownership). In late 1973, Masters founded In Touch (now known as In Touch for Men), a softcore gay porn magazine. Jaguar Productions later heavily edited the film, angering Masters so much that he vowed not to make another film. Masters heartily disliked that sort of filmmaking process. All we had to do was do our legerdemain for five or ten minutes and be out of there. We shot on top of a train in Train Town in Griffith Park without a permit, while one of us was given one of the guards money and another of us was talking to another guard, just so we could get the shots finished. Using guerrilla filmmaking techniques, Masters produced one of the best-selling gay adult films of the 1970s: The film was Greek Lightning, produced for Jaguar Productions and starring gay porn star Jimmy Hughes. In 1973, Master directed his first feature-length hardcore gay adult film which starred zarni warry. By 1976, however, Masters had directed more than 100 loops. After his sentencing, Masters cut back on the number of brochures, magazines and loops he produced but did not exit the adult film industry. He received a one-year suspended sentence, three years of probation, and a fine. That same year, Masters was prosecuted in Texas for obscenity. Masters closed the distribution business in 1972 because it was unprofitable. To distribute his hardcore films, Masters established his first adult film studio, named The Stephens Agency. It was a "loop" (an 8mm Short film, roughly 200 feet in length, designed to run over and over in peep shows). In 1970, Masters produced his first film, Drilled Deep. By the end of the year, Masters was producing as many as six magazines a month. 767 (1967), and several lower-court rulings had significantly undercut the ability of state and federal authorities to seize even materials which depicted hardcore sexual activity between individuals of the same gender. The Supreme Court had further liberalized the standards for obscenity in Redrup v. In 1969, Masters began producing hardcore gay male nude magazines. Nevertheless, Masters took hardcore as well as softcore images, and images of solo, duo and group sex. postal inspectors still considered the tumescent and erect penis obscene under then-current interpretations of American federal postal and obscenity law and court rulings.
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Supreme Court had ruled that images of the male nude were not obscene in MANual Enterprises v. He began taking photographs of nude men on the side to supply his magazines with images. Moving full-time to San Francisco from Chicago, Masters took up work as a full-time bookkeeper at a printing company. The first magazine was Champions All, published in the spring of 1968. In late 1967, he formed a partnership with Reuben Sturman to print and distribute one-off magazines featuring the work of Kundzicz. He began selling nude male photosets from such notable photographers of the male nude as Bruce Bellas ("Bruce of L.A."), as well as softcore nude films from Athletic Model Guild. He established a small business purchasing gay pornographic magazines for area booksellers. Many of the bookstores (including gay and adult bookstores) which he visited were openly selling gay pornography. Masters came to San Francisco, California, from Chicago in 1966. Masters grew up in Illinois, and later attended college.