> It's over for us
To be more specific: "us" in this sentence means the creators of dumb, shallow, and derivative movies.
The cognitive error here is that people see generated video and are overwhelmed by how it looks good, but they don't know how much it differs from an original vision. Vision that human prompting it had in mind while creating it. And I'm sure this differs a lot. Whoever tried to generate video using generative models knows that what you get is basically random. But movies never had been about showing random things.
There is no way the movie industry collapses. But it will certainly transform more into computer work.