Hollywood and the MPAA isn't about making movies. Rather, it's about maintaining a distribution chokehold on mass produced popular entertainment. This in turn means controlling what goes into the pipeline, and how the output from the pipeline is delivered to the consumers, and how the MPPE is marketed -- for example, the whole star system, Oscars night hype, and so on. What is needed is a better distribution channel,…
I don't think "mass produced" is right, since that term tends to refer to literal assembly lines and to exclude things produced merely in volume via artisan processes.
Your broader point is a bit confusing because it seems like you're saying studios don't make movies, they only do X. Actually, I think you're saying that making movies is not the defensible core of Hollywood's power. I basically agree, since there are many producers of quality "content" outside of Hollywood or who could leave Hollywood in an instant.
Separately, I don't think they have locked down distribution (in the narrow sense) channels very tightly; there are many non-Hollywood distributors, and it's not that difficult to self-distribute online or in theaters.
Sales and marketing--reaching consumers--is difficult. Hollywood may have legitimate skill here and the studios benefit from strong network effects, quantity discounts, etc.
Also, Hollywood seems to have decent VCs, as strange as it is to say that. They're able to invest large amounts of money in risky projects and come out ahead more often than not, despite the small average return. This might be a big part of their defensible core.
So aside from learning how to market, any solution that seeks to displace the Hollywood system needs to do one or more of the following: find something which will eliminate the public's appetite for shared/"public" art experiences, reduce the capital requirements for mass media, or cultivate a set of sophisticated-enough investors to put $100M down on projects at the prototype stage.