Perhaps we're already seeing some of that with Hollywood's endless reboots.
(Though a pretty big case can be made that the reason they don't produce new stuff is because then they lose the mass appeal
in the market, and it can be counter-argued that this in particular is ruining their ability to tell a story.)
Hollywood’s had that problem for some time. King Kong is a prime example. 1930’s, 1970’s and then again in the 2000’s. Each sequel loses something.
I will say that the rise of Netflix Original series output and AMC’s Breaking Bad and other such long running shows puts traditional Hollywood to shame. Plots that weave and connect over many hours of runtime and many years of realtime lay waste to a 2hr movie. Don’t see how there’s room for both.