It seems there's no new Movies on GOG and the only DRM-free Movies I can get online are public domain works of which don't cost anything.

It bothers me I can get a 200 hour game like Oblivion DRM-free, but not a 2 hour Hollywood movie DRM-free. Even if it's an 85-year-old movie like Frankenstein. There's also a lot of indie film makers that go with the Hollywood tradition of putting DRM in all the things.

Sadly, it seems so.. or at least it's on life support.
Gog never released any new titles or statements about its situation.

Latest movies provided by GOG are:
Double Fine Adventure Definitive Edition with DLC
Video Game Show — The Witcher 3: Wild Hunt concert

A: I don't like Tim Schafer
B: That concert video was made by GOG's Sister Company

I would have thought that the Bedrooms To Billions documentaries would have been a good fit for their movie section.

Well, something like Netflix is convenient even though stuff gets removed from it all the time, it's still cheap. I'm saying you can already buy from iTunes and discs and DRM has failed it's job, it does nothing to prevent content piracy. If it did, it wouldn't be on piracy websites. I just want an option to pay for movies without DRM like I can for games and music.

I don't know if it is different in US, but at least here whenever I check what movies might be on Netflix, the selection isn't that good. It is mainly the same years old movies I've already seen on the free TV channels here, it is not like the blockbusters of 2016 or 2015 can be found on Netflix. I guess movies are on the pay-per-view services where you pay for every view of the movies (a bit like renting a DVD movie for a day or weekend).

(I don't have a Netflix subscription, but sometimes I check some websites which list what is available on Netflix here so I might be motivated to actually subscribe to it.)

To me it appears Netflix is concentrating more on TV series than movies, and in a way that makes sense to them I guess. People are less likely to cancel their Netflix subscription if there are TV series there they are watching (new episodes and seasons coming...). Too bad I don't really care for TV series, 99% of them are boring and they are just making up new stuff on new episodes on the fly. I like movies more because they have a meaningful start and an end in the same package. A bit like how I prefer standalone games to episodic games where you don't know beforehand how many episodes there will be in the end.

It was a good effort in opening it, but the issue that I'm guessing GOG encountered is the inevitable fact that there are extremely few movie-makers, even indie ones, who release their movies DRM-free.
Even if you want to argue the idea that they could bring 85-year-old movies like Frankenstein, why would I want to buy it from GOG when I could find it free (legally) from a bunch of other places?

It's just resting.

The problem is that Gog had a chance to "win" with DRM-free games, only because Valve won with digital & low prices DRM-full first.
We'd need stronger competitors doing that for all movies too. The current offerings seem very limited.

..wait, nevermind that, Netflix killed all hope with their streaming services.

It never manage to get off the ground to begin with, they intent to try to get old popular movies (I believe the original Robocop was mention).

Deader than dead. Stillborn, actually.

That bothers me too, but unfortunately that is the way the world works currently. GOG is probably not going to change that. GOG movies is as dead as any Norwegian parrot in any Monty Python sketch. It's not resting, it's not stunned, it's dead. It wouldn't live, even if you put 4 million volts through it. It has definitely ceased to be. It has expired and gone to meet "its maker". This here is an EX-movie-shop.

I'd still like it if they bid the movie section farewell with a "pay 20 bucks, get 20 movies" kind of sale or something.
In the beginning the movies went on sale every now and then, and there were actually a couple I planned on picking up. For full price? Just not tempting enough...