>My plan B for them would be to change store format entirely. Build a nice home theatre that can sit 20 people and have showings of new releases. The catch is they use equipment that is in the $1000-$5000 price range, and it's a great experience that you can 'take home'. Delivery is free. Installation is extra.

Great idea, but not economical -- public screening rates for movies are ~$500. That was the rate clubs at my college had to pay, a commercial rate may be even higher.