Making Movies is the band's third recording, and it will be published on the 17th of October in 1980. Produced by Mark Knopfler himself, together with Jimmy Iovine, recorded in New York, where Mark will move those years. This album marks an important transition: the songwriting show jazz, blues, country and folk influences, as well as a strong and elaborate rock mark, as in "Solid Rock" (which will be part of the live concerts schedule). The arrangements include, for the first time, keyboards, played by Roy Bittan of the E-Street Band. Lyrics were more polished, with a more narrative mark, like short romances in music. One of the most meaningful example is "Tunnel Of Love", the album's opening track. However, the album's most famous song is "Romeo And Juliet", a song about lost and non-returned love, which received great admiration by many musicians and singers-songwriters. "Making Movies" also upholds the artistic separation between the Knopfler brothers.In clear disagreement with the rest of the band about the guitar parts and about the less democratic balance, David leaves the project during the recording sessions. In an interview given to an italian weekly magazine, he said: "I was at break point, the stress reached a limit who blocked me from continuing. The experiences you make in your youth help you to follow a dream, to live an adventure, along with other mates. And when you realize that you are no longer doing what you dreamed of, it's time to change. I felt like being in the middle of another person, not in the one I was following. I just wanted to be a guitarist who writes songs. Just this".
In the following years, the relations between the two brothers were more nervous. They didn't talk to each other,not even on their father's funeral. A problem about unpaid rights to David made the hatred between the brothers grow (some say it was Ed Bicknell's responsibility). David will try to talk to Mark and John hundreds of times, but he will never receive any answer.
Resuming the story, the "On Location World Tour" will lead Dire Straits to Australia and New Zealand for the first time. David Knopfler had been replaced by the english-californian guitarist Hal Lindes, who joined the band with the keyboard player Alan Clark. The tour ends on July the 6th, 1981 in Luxembourg, after 115 shows.