Earlier quoted context omitted.
Distribution is probably the easier part of the problem once you have a quality movie that was funded. Y Combinator could just partner with Youtube and release it worldwide. The hard part is funding the right movies and with as much as they need initially.
So let's bring it down: "We need high quality content". We need content good enough to replace Hollywood. It is the biggest Entertainment brand in the world, not an easy task.
Have you watched The Guild? Some of the best content I have seen in a long time. I think this is just getting started.
This reminds me of how people used to criticize digital cameras when they first came out. A decade later and film cameras are dead.