A large majority of games on iOS, Android, Xbox Live Arcade, etc. are under 1 GB. If indie developers are ok with making small games, then why can't bigger publishers be satisfied with making small games?
Spending millions of dollars to make a grandiose movie-style epic, and not selling enough copies to recoup those costs, is what's bankrupting so many studios this gen.
You don't have this problem in the movie industry because all the major film companies (WB, Fox, Universal, Sony Pictures, Disney) are huge global conglomerates. And they can afford those huge budgets.
In the video game industry, only a select few companies have that advantage (EA, Activision, Ubisoft, Nintendo).