As I understand it, most films don't make a profit anyway. People continue to make films because people like to produce art. With less of a profit incentive, of course, we may see less big budget Hollywood style films, since it will be harder to get investment from people only seeing it as a money making vehicle.
There would still be incentive to produce special effects bonanzas along the lines of Transformers, or superhero films, for merchandising reasons. They might look even more like expensive toy adverts than they already do, however.