Derived from combining LOL with Hollywood to denote the stupidity of media conglomerate movie making business tactics and the active, conscious dumbing down of filmmaking and audiences. Essentially, putting spectacle over filmcraft and media ethic. Anything the "big 6" in control of Hollywood does, most of it being stupid.
History: coined by movie director Jessica Mae Stover on her blog about filmmaking and "@JSto" Twitter feed.
Stover also uses synonyms: LOLmovie, LOLfilmmaking to denote similar infractions and absurdities
JSto: "In development?! If you're going to watch it, watch the actual films and not the dumb Americanized LOLlywood versions being plotted"
LOLlywood Producer: Hey I'm going to jagoff to Variety's announcement of my new film, Wild Wild West II!
Director: I have the rights to 'The Lord of the Rings'.
LOLlywood Exec: Great! We have a contract with Vin Diesel, he can play Gandalf!