Answer
Wa `alaykum As-Salamu wa Rahmatullahi wa Barakatuh.
In the Name of Allah, Most Gracious, Most Merciful.
All praise and thanks are due to Allah, and peace and blessings be upon His Messenger.
Movies, plays, and artistic works are permissible as long as they do not present, as we see today, what is contrary to Islamic teachings. Movies that provoke vices and fitnah (temptation) are prohibited.
In his response to your question, Dr. Muzammil H. Siddiqi, former President of the Islamic Society of North America, states:
First of all we’d like to stress that Islam does not go against beautiful art. On the contrary, it always encourages art that agrees with pure human nature. Art is an effective tool if it is perfectly used. That is why Muslims should not ignore this field, leaving it to enemies of religion and humanity.
The film industry is at present in the hands of people who do not know and do not care for Islamic values. It is very difficult for an observant Muslim to behave as a good Muslim and work in the film industry. However, this should not stop Muslims who have such talent to develop their own Islamic filming programs and institutions.
Film is a very effective and powerful medium. It can be a tool for healthy entertainment, moral education and Islamic da`wah. Muslims can use this tool but they have to work very hard. They need resources and sincere commitment to Islamize the film industry.
Allah Almighty knows best.