Book excerpt: Hollywood is facing unprecedented challenges – and is changing rapidly and radically as a result. In this major new study of the contemporary film industry, leading film historian Tino Balio explores the impact of the Internet, declining DVD sales and changing consumer spending habits on the way Hollywood conducts its business. Today, the major studios play an insignificant role in the bottom lines of their conglomerate parents and have fled to safety, relying on big-budget tentpoles, franchises and family films to reach their target audiences. Comprehensive, compelling and filled with engaging case studies (TimeWarner, DreamWorks SKG, Spider Man, The Lord of the Rings, IMAX, Netflix, Miramax, Sony Pictures Classics, Lionsgate and Sundance), Hollywood in the New Millennium is a must-read for all students of film studies, cinema studies, media studies, communication studies, and radio and television.