According to IMDb the MPAA is reporting that 2005 was the worst year at the box office in almost a decade. A 9% drop in admissions combined with a 33% rise in marketing costs, but 19% decrease in production costs. It still all adds up for a loss. The bad new continues, that 9% drop also occurred in the international market too.
This is just one data point, it's hard to make any conclusions on it. That being said, consumers are getting even more consumption choices for their entertainment. Hopefully Hollywood will continue to reduce production costs. Marketing costs will continue to rise unless someone come up with a better way of enticing people to watch... My advice "Make better movies." --Terrence Ryan