As a former editor and current head of Variety magazine's West Coast bureau, Peter Bart is a well-known figure in the film industry. He regularly offers perspectives on the economics of Hollywood distribution and production.

One of Bart's observations was that the number of films being made would noticeably decline over the course of the following year or two. The difficult financial circumstances that the film industry has been going through are reflected in this statement. The change in funding sources from traditional studios to alternative investors like hedge funds and other investment groups is one factor contributing to this downturn.

Consider the film industry as a huge garden with a variety of flowers blooming in each season, signifying the frequent release of new movies. Financial limitations, however, are causing fewer seeds to be sown, which will result in fewer blooms the following year and the year after. In the meantime, various investors—including hedge funds—who might not typically be involved in the film industry are stepping in to support the expansion of this garden by providing funding for some of these new initiatives.

This shift suggests that fewer movies will be made, but those that do might have a combination of support from more recent investors and more established studios. In addition to changing the amount, this change may also change the kind and caliber of content being produced in Hollywood.