The way to "destroy" Hollywood is to encourage decentralization, as has been occurring for the past twenty or thirty years. With film & TV production moving outside of southern California to Canada and other US states, the localized production power of Hollywood has been disseminated to other regions. The distribution for high-budget films currently remains in Hollywood, but increasingly the Internet (as distribution, financing & marketing outlets) and in the long-term local demand in China, India, Africa & the Middle East will begin to pull global distribution control away from Hollywood even for big-budget movies.

It is the decentralization of movie making that will destroy Hollywood, not start-ups.