I think that Hollywood is definitely going to take a big hit like most industries. People are spending a lot on entertainment and there's also a lot of free shows, music etc on the internet now.

.... "I'm not watching $900 worth of cable," said the 25-year-old advertising account coordinator, who lives in North Hollywood. She's trying to persuade her roommates to drop the service.

 

You can watch so many shows online for free; most of them are on Hulu now," Olson added, referring to the year-old video site that makes available at the click of a mouse more than 1,000 shows, including her favorites, "Ugly Betty" and "House."

Such changes in consumer behavior signal trouble for media companies. For decades, entertainment executives have boasted that Hollywood is "recession-proof." No matter how dire the economy, the argument goes, consumers will always be willing to spend on entertainment to escape.

....

http://www.latimes.com/news/printedition/front/la-fi-hollyecon29-2008oct29,0,5824863.story

via

NMT