Ummm.... It's the production and distribution companies which make Hollywood, well, Hollywood. The two are inseparable. So, if the production and distribution companies *need* the revenue income from the movies theatres to survive, then the rest of Hollywood does as well...
the infowarrior
After all, this person who just signed up clearly knows far more than any of us about the movie business and the cultural implications of its content.
Hollywood doesn't need a movie to be a success in secondary (less populated) domestic markets to survive. This is particularly true for low budget movies. They can make impressive profits in key markets, international distribution, DVD sales and television rights.
You clearly have no idea how the market operates- the two are by no means inseperable. In fact, there's recently been much concern in the community about foreign distribution companies trying to edge into the American market; notably those from so-called "Bollywood" in India. The two are very different, and very distinct entities in the film industry, and if you'd bother to read the economic literature on this, you'd see that any cogent analysis identifies and addresses this distinction.