"For Apple to win, Microsoft doesn't have to lose." - Steve Jobs.
You won't destroy Hollywood by creating a few new studios. But you might change it. That's really what people want to achieve.
your new studio will not disrupt Hollywood if it runs out of money. that is my point. your new studio has to be able to compete with the existing studios. You have to compete with Dark Knight Rising, Harry Potter, Star Wars, Twilight, Pirates of the Carribean, Spiderman, etc. and you have to do it every week, every month, every year for as long as you can.
No, you'll compete with Quentin Tarantino, and the Cohen Brothers, and they don't put out a film every week.
Anyway, you've named some of the best high-budget movies over the last 10 years. They don't release an Avatar every month.
>never produce a film that requires broad mass market success to avoid total financial failure.
You'll avoid financial disaster but you'll never "destroy" Hollywood with this mindset. Copolla and Roger Corman disrupted the movie industry but they did not "destroy" Hollywood.