do hollywood movie companies incorporate in california? or do they incorporate in other states and do business in california?

Regardless of where they incorporate, any CA based income is taxed in CA and they must pay the CA franchise fees.

Many large corporations incorporate in DE because DE has very lax reporting requirements and low set-up fees. Done properly the franchise fees are very low. (Done improperly, they are breathtakingly high, so never go down that road without competent guidance.) The downside to that is that some states tax "foreign" corporations at higher rates than "domestic" corporations. In this case, foreign and domestic refer to the state, not the country. A DE corporation doing business in PA is a foreign corporation under PA law and will pay a higher state tax rate than a PA corporation.

very likely in Calif. whether they actually incorporate in a 'cheap' state they are operating their business in Calif. and subject to Calif. taxes, the only advantage to them would have been less money to prepare the legal papers

they have dozens of layers in order to move costs and profits around in a complex system