Final answer:
Hollywood is currently dominated by six major studios, not five, contradicting the idea that there are only 'the Big 5'. These studios shape the direction of the modern film industry with a variety of productions, making the statement false.
Step-by-step explanation:
The statement that Hollywood was dominated by 5 big studios, also known as the Big 5, is false. Today, Hollywood is known for having six major studios. These studios are responsible for financing and distributing a significant number of feature films each year, pushing for mass-market appeal, and often producing sequels and films with extensive special effects. The film industry has evolved from its early days when studios sought to create popular and cost-effective films, as described in the historical development of the film industry in places like the United States, Germany, and Japan.