From what I see on r/stablediffusion, Hollywood has maybe 2 years left, in the optimistic case.
i am extremely wary of making any predictions about ai, given what's happened in the last year, but i would put good money on hollywood being around in 2 years. there's much more to the movie industry than slapping some video together.
r/stablediffusion seems to be a bit disconnected from reality, to put it nicely.
Even if it gets good enough, you're forgetting about everything else that goes into movie making and distribution. Hollywood will keep their hold on media, they just might use AI to increase profits even higher.