The entertainment industry exists for profit, not welfare.
The gaming industry is already larger than Hollywood and
animation (by any name) will only improve.
Scripts are "code". Interposing fewer humans between script and finished result lowers costs and democratizes production by reducing physical (including equipment and set) footprint.
As movies obsoleted theater so computers are obsoleting old ways to make video. That's a natural evolution, similar to how CNC machining obsoleted factory floors of manual standard and specialty manual machine tools. Those tools still exist and get frequent use, but not for mass production.