I watched a youtube video a few months back (sorry, don't remember the tuber) which had an interesting take on the subject. I don't know how true it is as I don't have my finger on the pulse of the industry, but I'll attempt to paraphrase it:
The big Hollywood studios have found that big budget blockbusters tend to gross much higher figures compared to mid and low budget movies. They are in the money making business, so they tend to fund big budget films with proven formulas, directors, stories, and actors. Small budget indie films are still around and probably will be for a long time because they are usually made by people trying to break into the industry, and are relatively low risk financially. Quality wise they are hit or miss.
Mid budget hollywood movies have basically gone the way of the dodobird. The big studios don't want to risk multiple mid budget films, some of which will pay off a smaller percentage than the blockbusters and some of which will flop.
So what do you get for big budgets? You get big special effects, you get franchised characters and stories that are loved by the younger crowds, etc. What you don't necessarily get is great writing, because you don't need it.
Instead of mid budget movies, what we have now are mini-series. Netflix, Amazon, and others have picked up production companies that would be making mid-budget films with good writing, somewhat expensive sets, and mid-tier actors and turned them into 6-10 episode seasons rather than 2-3 hour productions. Many people who are not willing to sit through a 3 hour film will happily watch a 10 hour mini series over the course of a week or two.
