I say, good riddance.
What Hollywood served us as entertainment in the last couple of years (I'd even suggest, this rapid decline in quality began over a decade ago), was left-wing identitarian slop with divisive and hateful messages, not very cleverly disguised as "stories" by people, who clearly were hired and promoted not on a merit-based system.
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They certainly did that but they were going down even without that shift. Technology means dilution was going to happen regardless. It might have hastened it.
The largest streaming service, by a wide margin is Google with YouTube. That shows everyone how eyeballs are going someplace different.
You're correct, but look at Japanese and Korean movies/TV shows suddenly popping up on US streaming services and outperforming most of the "Western" stuff.
Quality is down due to ideological reasons and viewers have left in droves because of that in my opinion.
I was and to a certain degree still am a big TV show and movie nerd and I loved almost anything the 90s, naughts and the early 10s gave us, with cringe moments of realizing, I am being "educated" by a sudden influx of ideology. It got so bad so quickly, that I don't watch any Hollywood stuff anymore. I presume, there are many people like myself, and they found something else in different places.
I don't think we would see the crumbling of this once mighty industry, if this ideological shift didn't happen, and I don't mean the left ideological bend Hollywood always had.
I mean this new monster, that affects every aspect of the American culture and American political discourse now and has infected its European, Canadian and Australian vassals as well.
We did see it with the newspapers and record companies as the technology disrupted. It was only a matter of time before video was disrupted in the same manner. The key is the monopoly on video distribution was broken by the internet. It took a while for the creation side to catch up along with the technology. When YouTube came out, most were still on dial up.
Would the pace have accelerated? Who knows. The lockdowns also had a part in it as does ticket pricing. I do not deny they are factors.
However, I think the overriding factor is technology, the last disruption. The next one, AI, is really going to crush what is standing with Hollywood.
And I will celebrate its demise and hope for a creative revival of American entertainment.
AI will be big, and I'm playing with it myself.
AI is going to take over the entertainment industry. We are going to have personalized entertainment.