It's not easy to imagine the movie industry surviving without copyright. I have confidence that the end of music copyright is months to years away no matter what laws are passed and that this is morally correct and will have no effect on humans being able to hear quality new music.
Blockbuster movies often require lots of people and expensive equipment for production (filming, special effects) which mean huge budgets unlikely to remain if copyrights are ended.
People love movies and I think there will be more of a debate if the movie industry is seen to struggle because of the visible nature of hundreds of people working on projects. I don't think it's imminent though although the film industry would have you believe it is.
A lot of movie budgets can be made up by some innovation such as auctioning off minor cast roles to fans and making a consumer product's features essential to the plot (rather than just product placement).
It's impossible to imagine what technological advances there will be in movie making but I can foresee one by applying it to computer animated movies: collaborative open source computer animated movies.
Character models, movements, sound effects, and editing can all be done remotely by volunteers or paid skilled staff benefiting from excellent cost savings. This model is already used to make some of the best computer software in the world rivalling that of multi-billion dollar corporations.
There are many movies that make me wish the filmmaker had sought more opinions from common folk. Star Wars: The Phantom Menace had some scenes that caused fans to edit them out in remastered versions. I think Quentin Tarrantino's Inglorious Basterds would have been brilliant with a bit more editing and leaving Hitler out of the finale. My point being that with collaboration we may actually see an improvement in films.
Unemployment of some sort is likely just as some photographers are complaining that Internet stock photo sites are killing their industry. Unemployment is a really bad thing in the short term but in the long term unemployment is an indicator of improvement; that tasks are accomplished more efficiently so talent can be used elsewhere. That is why humans live longer than ever.
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