In addition, if the only distribution model is online streaming at 0.99, you'd need to sell 10M views to just break even. Yes, this can be achieved for a single hit, but for every single one to break even is similar to the current model.
One of the key things with the internet and technology is that: 1) Technology has enabled talented artists, filmmakers, and musicians to produce high quality content at a reasonable costs. Take a look at all the quality production that is around on the internet. 2) The internet has enable low cost distribution and discovery service. This means that we can increase the number of distribution channels for much lower cost than the existing model.
Because of these two facts, this enables smaller productions (you don't need $10M revenue if your cost is $30k) and more niche audience. Think of all the long-tail movies that do not get made because the target audience is too small; these would become economically feasible with internet distribution.
The indie film industry follows this similar model. A lot of indie films are low budget films made by students and budding stars. These films and talent are then discovered by the big budget studios and brought into that fold. (Think of the indie film community similar to the open source community in tech.) They are often looked down upon by the big budget studios and the community is looking for that one opportunity to break big. They have as much distaste for the Hollywood model as the tech industry does. There is a huge opportunity in bringing them into the fold of the startup industry to counter Hollywood. Provide them a clear path of success without giving up much of their rights or stake and they'll surely jump at the new approach.
Lastly, the internet is a great talent discovery. Look at the number of mega stars that have been found on YouTube and other websites. The problem is that once someone becomes "Internet Famous", how do you turn them into "Real Life Famous". People like Justin Bieber have no choice but to fall into the hands of the existing production model.
Provide your consumers (in this case the movie production and the movie consumers) with a better product and all else will follow.
tl;dr -
1) Embrace the Indie Film industry -- they are desperately looking for a partner in taking on big studios. They have already been in this fight for years, that we have only recently just joined.
2) Use technology to assist in discovery.