That's not how the Walmart and Amazon P&L sheets tell the story. Your comment about Sears might be accurate, but not Walmart. Amazon.com in no way is killing Walmart. Walmart posted a $27 Billion profit in 2012. Capital B. Amazon on the other hand lost 60 cents a share in Q3. Amazon isn't even in the same league as Walmart. They are Northern Illinois to Walmart's Alabama.
Hollywood is not losing control. The companies that own the networks report record profits. How is that losing control?
I think you under estimate the cost to produce programming. How much does something like Game of Thrones cost to produce? Google says $60M dollars for the first season. Even for Google, that's a lot of cash to risk on something that might fail.
Tech history is also not on your side re your comment about HD cameras being cheap... Just because a camera is cheap doesn't mean that people who know how film, direct, edit, write and act are. This is the same argument that anti-luddites made when YouTube came out, and when Amazon started selling independently authored books, and when Apple made it easy for any garage band in America to "professionally" record their own music and release it through iTunes. And to this day - truly professionally produced content from the major publishers and record lables still dominates. And YouTube is nothing more than a gathering place for people to watch the latest oddity - i.e Gangnum Style. History is not on your side.
You can't correlate current profits to a nascent paradigm shift in the market. Example Amazon's profits are lower due to their prime program and their new expansion to offer same day delivery which will cause Walmart huge headaches in the future.
I'm looking at the long term trend and it's not favorable to content producers.
Napoleon Dynamite was filmed for less than 500k, it grossed 46m and that doesn't include TV, DVD etc.
Clerks was filmed using Kevin's credit cards for 27k, did 3m in the theaters but had a cult following on DVD.
These were 1994 and 2004, imagine what they could do with today's technology.
Just check out the numbers on Roger and Me.
I work in the tech startup world, you should see the wacky companies who get funded. Now you can raise money and shoot films for practically nothing. More and more of these films will hit it big and guys like Mark Cuban will be right in the middle of it. (he owns a chain of movie theaters.)
Hollywood is on the run, there was a great article a few weeks back in one of the financial papers (I'll try and dig it up) about how they are running scared. I look at my own friends who shoot video for famous djs, you'd think major Hollywood studios are producing these, but it's just a guy with one single 7k camera. (Red Camera) Some of them are now filming commercials here locally. My other buddy shoots these funny videos for his night club and posts them on youtube, they feature celebs and even a famous director, all done with one cheap hd camera, one writer in an afternoon. (These are espn spoofs and get millions of hits) 5 years ago this was impossible. My other friends worked on the Jersey Shore show, this show did not have a huge buget, a crew of about 30 people, a few tiny cameras and mac books.