It seems like the price people are willing to pay for entertainment has gone down significantly, in sync with it becoming far cheaper and more abundant. So movie theaters are in trouble if they're selling entertainment by quantity, because the supply only goes up.
I think they're more successful selling cultural commonality; you watch the latest popular release so that you can talk about it with other people, and the marketing has already gotten you excited about it. (I find being pre-excited about something and thus not having to learn about and pick from a huge array of options a value-add all on its own)