Yes they can. The size of many codebases is much larger and LLMs can handle those.
Consider also that they can generate summaries and tackle the novel piecemeal, just like a human would.
Re: movies. Get YouTube premium and ask YouTube to summarize a 2hr video for you.
Novel is different from a codebase. In code you can have a relationship between files and most files can be ignored depending on what you're doing. But for a novel, its a sequential thing, in most cases A leads to B and B leads to C and so on.
> Re: movies. Get YouTube premium and ask YouTube to summarize a 2hr video for you.
This is different from watching a movie. Can it tell what suit actor was wearing? Can it tell what the actor's face looked like? Summarising and watching are too different things.