Hollywood is in trouble, and it's partially their own fault.
The statistics speak for themselves: cinema attendance is falling dramatically as people stay at home with their wide screens; DVD sales are falling; online video sales are a pittance (see this great analysis by DigitalTX's Alex Cameron). The only bright spots on the horizon are the up front fees the studios charge from new media wannabees, sales to hotels and airlines and sales over cable and satellite.
Managing the rights behind a movie can be a hugely complex affair, so you can understand that the studios don't either want to change or undermine existing business models, but the lesson is that the viewers out there have limited interest, limited time and many, many distractions.
Mass media is just about beginning to feel the pinch as narrowcasting begins to take eyeball time.