First thing, ointments sell out immediately everywhere. Most people hide their hideous-ness when going out in public at first. There are those who would flaunt it, but most are ashamed, even though everyone else looks the same. A dramatic change in clothing and things worn around your head. Cosmetic surgery becomes more popular then ever before. Eventually the world comes to terms with it’s new state of being, and are less horrified now that this is the norm. Future generations find things in each others appearance that they find attractive.
Meanwhile, constant research on how this happened goes on, the religious claim this as punishment from the divine, others say the end nears.
As for Hollywood, at first, the movies that already exist become extraordinarily more watched than anything new coming out. People don’t want to think about their appearance, and so watch movies that don’t bring this to light or point it out. A huge rift develops, between those who want movies to have actors act as usual, just having to deal with this new appearance they all have. The others want more CGI, so that movies have the same appearance.
I could go on, but I think I’ve said enough.