The sign originally read "HOLLYWOODLAND," and its purpose was to advertise a new housing development in the hills above the Hollywood district of Los Angeles. The sign was officially dedicated on July 13, 1923. It was not intended to be permanent. Some sources say its expected life was to be about a year and a half but after the rise of the American cinema in Los Angeles, it became an internationally recognised symbol, and was left there. It became so associated with Hollywood, that in September of 1932, actress Peg Entwistle committed suicide by jumping to her death from the letter "H", as she saw the sign as a symbol of the industry that had rejected her.
According to the summer 2006 edition of "The Beachwood Voice," during the early 1940s, Albert Kothe (the sign's official caretaker) caused an accident that destroyed the letter "H", as seen in many historical pictures. Kothe was driving his car up to the top of Mount Lee drunk, lost control of the vehicle, and stumbled off the cliff behind the "H". While Kothe was not injured, the 1928 Ford Model A was destroyed, as was the "H".
In 1949, the Hollywood Chamber of Commerce stepped in, offering to remove the last four letters and to repair the rest. Because the city dictated that all subsequent illumination would be at the cost of the Chamber, it opted not to replace the light bulbs. The 1949 effort gave it new life, but the wooden and sheet metal sign continued to deteriorate in the open air of the Hollywood Hills. Eventually the first "O" splintered and broke off resembling a lowercase "u", and the third "O" fell down completely leaving the severely dilapidated sign reading "HuLLYWO D".
In 1978, the Chamber set out to replace the intensely deteriorated sign with a more permanent structure. Nine donors gave $27,700 apiece to sponsor replacement letters made of Australian steel, guaranteed to last for many years.
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