This is also because Amazon and Netflix are buying up things that might have otherwise gone to the theaters. Why pay royalties forever when you can just own it forever and amortize the cost?
true, but i think these purchases have a much greater impact on TV that film. Amazon, Netflix, Hulu all have a long list of really successful TV shows but it's hard to think of a 120-minute movie that has risen to the ranks of Handmaiden's Tale, House of Cards, etc..
True, it is affecting both. I was speaking also to the fact that Manchester by the Sea (e.g.) was made by Amazon. A great outcome for them is simply to break even at the theater. They then have an exclusive movie for free forever. The studios can't afford for all of their movies to break even.