Hollywood's doing just fine.

While people bemoan the constant blockbuster remakes, they forget the dozens and hundreds of other movies that Hollywood also makes which people don't watch...because they don't want to.

Hollywood pushes blockbusters because they're the surest bets for making lots of money. But they also make lots of artsy films because many of the folks want to do something more rewarding than a vapid blockbuster.

(BTW, Netflix is part of Hollywood now. Arguably, the most Hollywood of the modern studios, as they're actually the only major media company to have studios physically located in Hollywood.)