Low budget films see just as many failures as they do successes, but the losses aren't as damaging. The profits aren't as profitable, either, except in rare cases of a sleeper hit, so you can't really rely on them sustaining all the studios. That market might support a couple of companies, like the Weinstein Company, but that's about it.
If the crash comes, the low budget films will probably get squeezed out of theaters entirely in favor of really safe big budgeted films that will stay in theaters for months (the Broadway model.) They'll seek out alternative areas, like net distribution instead.
Edited by Tulpa - 7/13/13 at 8:08am