Making an indie movie is now too cheap - there aren't enough viewers to support them

I heard a good phrase the other day: each new surplus creates a shortage. In this case, surplus of cheap movie making tools makes a shortage of viewers.

But actually I think this is just a distribution and filtering problem. The best content isn't getting to the people that would like it most.

"Making a web 2.0 site is now too cheap - there aren't enough users to support them"

you mean: now there's enough capacity to create movies that supply can surpass demand. but that's a good thing. now there can be more competition, and people who suck at making them will end up doing something else.