I think that even pre-covid, movie economics had changed to favor blockbusters rather than modest-budget movies. Post-covid, almost all of the major theatrical releases have been Disney. I think that right now there's a lot of anxiety about theatrical releases, and a belief that only blockbuster type movies will get people out to theatres at all. On the bright side, Netflix and Amazon Prime are giving venues to movies that might have never seen a theatrical release even before covid.
For all the complaints about Super Hero movies "killing" the movie industry, there were more than twice as many movies released in 2019 (pre covid, 792) as there were in 2000 (371).
See:
https://www.statista.com/statistics/187122/movie-releases-in-north-america-since-2001/The industry is changing in a lot of ways... the budgets for blockbusters seems to be increasing, but improved technology makes it easier to produce low-budget movies. Streaming and better televisions in the home are diverting people from the theater, but its giving new life to movies that might otherwise not find an audience.
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