I think what Haemo was trying to say is that the "management structure" in Hollywood is changing again. The first time it changed, it went from the "Studio System" in which everyone from the actors to the guy who brought coffee in the morning was an employee of the studio to a system in which everyone is "freelance." Now it is changing again to a system that is more competitive, global and fragmented.
All that aside, Hollywood is not going to "fail." There is a huge worldwide infrastructure out there of theaters, video rental stores, television cable companies etc. etc. etc. Feeding that pipeline with "product" will remain highly profitable far into the future.
That would depend on what you define as Hollywood, and what you define as fail. If by Hollywood you mean an entire concept, and system for producing motion pictures (or whatever their equivalent technological replacements will be), and fail as meaning to become extinct, then clearly not. If, on the other hand, you mean Hollywood as the current system, and fail as not continuing unchanged, then that's not as safe a bet...
the infowarrior