Veteran directors Steven Spielberg and George Lucas have warned of an impending Hollywood "implosion" which could have a significant impact on cinema-goers.
"There's going to be an implosion where three or four or maybe even a half-dozen mega budget movies are going to go crashing into the ground, and that's going to change the paradigm," Spielberg said before predicting that he can foresee consumers paying more to see larger scale films.
Star Wars creator George Lucas told students at the new media centre at the University of Southern California that even experienced film-makers like the pair were struggling to get the funding to produce films.
Lucas said he envisaged a scenario where some films would be broadcast on the more "adventurous" cable television.
He said the business of films would become more like Broadway or West End theatre where going to the movies would cost you "50 bucks, maybe 100. Maybe 150".
Audrey Tatou, the host of the 66th Cannes Film Festival opening ceremony paid homage to Steven Spielberg's E.T. in her speech last night. She said:
"Hearts that are ready to be charmed, moved, amazed, stopped, whether or not they are all decked out for the occasion, hearts here and elsewhere, hearts that have loved cinema ever since the day that a film, the first one, transported them to seventh heaven."
She added that for her, that film was E.T., and this strange creature "that kept on repeating Call home, call home".
The Cannes jury have given their opinion on what they will be looking for as they judge the winners of this year's festival.
Steven Spielberg said: "My opinion is very straightforward, we are always judging, we are constantly judging films we see at the cinema, evaluating them and trying to see what is radically new in them. Films are always in competition with each other for audiences' attention."
Nicole Kidman said: "I think that it is important to contribute to the celebration of film. I finally had the time to sit down and watch films. Cannes is a prestigious festival that has done a lot to promote the films in which I have acted."
Christoph Waltz said: "An award is always the result, but the result of what? Good psychoanalysis involves both a psychoanalyst and a patient. We each of us have our way of carrying out our task and mine is perhaps more descriptive than Cristian's."