Not Really Right
The basic conceit behind this article seems to be that the movie business lives in some sort of free market system, but this is completely false.
The movie business lives on a diet of public subsidies, and has for more than a generation. California has been unable to tax the movie business since forever and every time they try, movies head off to Toronto, the Gold Coast, Wellington, and probably several other places I don't know about.
These places offer massive subsidies, (because of jobs apparently), but as soon as any attempt is made to force the studios to pay their own way, everything is shut down and the next bunch of suckers start handing over the dough.
I know this because "The Hobbit" that you all "enjoyed" recently cost my neighbours and I $50 million of our dollars to make.