So what you are saying is some aspects of movie making will use AI as parts of their jobs. That is very realistic and probably already happening.

Saying that large video models will be in theaters sounds like a completely different and much more ambitious prediction. I interpreted it as if large video models will produce whole movies on their own from a script of prompts. That there will be a single film maker with only a large video model and some prompts to make the movie. Such films will never be in the theater, unless by some grifter, and than it is certain to be a flop.