While of course it isn't impossible for any industry to reinvent itself, movie as an art form won't die....having doubts about where it's going.
Unlikely in the next 10 years or the next 100?
With that said, I’m pretty confident that the movie industry will exist in 10 years (maybe heavily tranformed, but still existing and still pretty big). If it’s still a big part of current popculture by then (vs obviously on its way out) then I’d expect a collapse of it to require a change that is not a result of AI proliferation, but something else entirely.
Realistically, AI being able to replace Hollywood is something that could happen in 20-50 years. That's within most people's lifetime.
They will have huge budgets for compute and the makers of compute will be happy to absorb those budgets.
Cloud production was already growing but this will continue to accelerate it imho
the compute budgets for basic run of the mill small screen 3D rendering and 2D compositing is already massive compared to most other businesses of a similar scale. the industry has been under paying their artists for decades too.
I'm willing to bet that as soon as unreal or adobe or whoever comes out with a stable diffusion like model that can be consistent across a feature length movie, they'll stop bothering with artists altogether.
why have an entire team of actual people in the loop when the director can just tell the model what they want to see? why shy away from revisions when the model can update colour grade or edit a character model throughout the entire film without needing to re-render?
Limited access to the tech added some mystique to it too.
Just like digital cameras created a lot more average photographers, it pushed photography to a higher standard than just having access to expensive equipment.
I don't think we're far away from models that are able to take video input of an almost finished movie and add the finishing touches.
Eg. make the lighting better, make the cgi blend in better, hide bits of set that ought to have been out of shot, etc.