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Smiley, you're comparison between pron and hollywood is too simplistic. Hollywood used to pump out film after film during it's "Golden Era." But Star Wars came out and the film industry found merchandizing and tie-ins which would be hard for the pron industry to duplicate.
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If merchandizing and tie ins are so profitable, and which they are- Star Wars (I'm talking all the movies), for instance, made roughly 3 billion in the box office and video/DVD sales. It also made 7 billion in merchandising and licensing revenue.
With merchandising and licensing being so profitable, it'd make more sense to give the movies away for free as advertising for the products!
The Japanese, always one step ahead of US industry, seems to have caught on to this. While Japanese movies may not be anywhere as spectacular as US movies, they have an impressive line of TV shows, which are shown for free on broadcast television. The companies producing these shows make their money off selling merchandise. True, some shows such as Pokemon look a whole lot like 30 minute commercials, but there are still other shows that focus on plot and not marketing.
Basically the current model of big budget movies for their own sake is going out of style. File sharing will eventually destroy the ability to make large scale movies for a profit, thus creating the following polarization.
Large budget movies for advertising. We're not just talking toys and fast food. You'll see car companies making car movies, tourism bureaus celebrating local legends, political propaganda, etc.
Low budget art movies. Once file sharing reaches a majority of the population, the studio distribution apparatus will no longer be needed for art movies to reach the national market. Additionally, as the price of computing power continues to drop, the ability to create special effects will be affordable to anyone with a lot of free time on their hands.
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Smiley 
