Paramount, whose contract guaranteed another film by Hitchcock, did not want Hitchcock to make Psycho . Paramount was expecting No Bail for the Judge starring Audrey Hepburn , who became pregnant and had to bow out, leading Hitchcock to scrap the production. Their official stance was that the book was "too repulsive" and "impossible for films", and nothing but another of his star-studded mystery thrillers would suffice.   They did not like "anything about it at all" and denied him his usual budget.   In response Hitchcock financed the film's creation through his own Shamley Productions, shooting at Universal Studios under the Revue television unit.   The original Bates Motel and Bates house set buildings, which were constructed on the same stage as Lon Chaney Sr. 's The Phantom of the Opera , are still standing at Universal Studios in Universal City near Hollywood and are a regular attraction on the studio's tour .   As a further result of cost cutting, Hitchcock chose to film Psycho in black and white, keeping the budget under $1,000,000.  Other reasons for shooting in black and white were his desire to prevent the shower scene from being too gory and his admiration for Les Diaboliques' s use of black and white.