INDUSTRY-BY-INDUSTRY OUTLOOK : The Year in Preview

California came several years late to the nation’s economic recovery party, but the state should be celebrating all through 1997.

Here is what key industries will be up to:

MOVIES: Hollywood must grapple with fixing the problem of having a glut of movies released--only a few of which become hits--amid skyrocketing costs to pay big stars and market films. In addition, the industry needs some executive stability. Last year saw a near-total housecleaning at Sony Pictures, along with the departure of top executives at such companies as Viacom Inc. Also, where will former superagent Michael Ovitz land after his abrupt departure as president of Walt Disney Co.?