Economic hubs work when there is more efficiency to be found in industrially-codependent resources being located close to each other, than there is in cheaper labor costs outside the hub. Hollywood's heyday was when there was enormous value to putting actors, agents, producers, cameras, sets, editors, VFX, writers all within close driving distance of each other, so that you could organize new movies and shows at the drop of a hat. In a day and age when teenagers are able to use cellphone cameras and pocketmoney to produce stories that are compelling enough to command attention and advertising dollars, the value of that geographic proximity has declined tremendously.

AI didn't build the coffin, but it's been putting nails in it.