His point though was that SF isn't particularly suitable as a city for startups; there's no magical "tech gold" that you can't get elsewhere, like West Virginian coal - people go there just to be in the game, because that's where the VCs chose to be. Historical and geographical factors in fact make it a particularly unsuitable place for a bootstrapped startup to exist.

The difference perhaps is that although Hollywood is the place to make deals and host awards ceremonies, the actual work of filming is done around the world, from New Zealand to Ireland to Vancouver.