with out a doubt - the 70's.
it was the last time (until recently) that the industry took the genre seriously.
big directors worked with A-list adult stars.
and there was a grit to the style that was prevalent across all of the genres in the 70's - horror had it in spades.
the films were allowed to unfold at a slower pace. the 80s would bring the ADD viewer mentality - where everything had to be rushed - no down time - no slow build. (with few exeptions - one being exorcist 3 - which is why i like it so much)
that being said ... i think horror is making a quality comeback in the last 2 or 3 years - getting better all the time.
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