Although Hollywood dominated the cinema they changed their old system to filming, this started in the 1950s, they changed their system because of the social and cultural factors.
The reason why they changed was because of the other new waves from Europe, Hollywood saw the change and saw the new types of audiences and new cultures that came with it. By having these new audiences, films that Hollywood were releasing were becoming more controversial and films like Bonnie and Clyde and Easy rider were considered the start of new hollywood. Due to the new waves there were a lot of young enthusiastic directors who were able to create great narrative stories, there was a lot more freedom for the directors to be more creative with their work and therefor they could become auteurs of films.
Films like Jaws directed by Steven Spielberg were a great hit due to the new way of filming and this brought in large amounts of audiences and will be a film that will last for ever.