Earlier quoted context omitted.
- Theatrical releases are how movies make most of their money, not giving them away for free on streaming. Box office margins are huge, but renting licenses to streamers is limited and fungible with all the other mountains of content they license. - Box office optimizes for novelty, streamers optimize for "don't churn" - very different criteria for investment. - Disney cannibalized the box office with Marvel Star War…
What Hollywood considers most attractive (blinding white veneers, botox, fillers, blephs, steroid use etc) is not necessarily what the rest of the world finds attractive, and for some audiences can be distracting and immersion breaking.
People want to watch local. Local people, places, settings, and situations that have meaning to them. Hollywood could never deliver this.
Content and distribution used to be hard and capital intensive.
Netflix and YouTube solved distribution, but content still took millions to make.
That's changing rapidly now. There's no more need for Hollywood.