Hollywood studios enjoyed a bumper summer, thanks to several blockbuster sequels such as Spiderman 3 and Shrek 3. But the executives who control the industry have reasons to be fearful going into the crucial Christmas season.

The DVD market, which for 10 years has been a cash cow for Hollywood, particularly during the festive season, is running out of steam with sales for the first nine months of the year - 3.5 per cent down on 2006.