It's a bit disingenuous to imply The Matrix did not catch on until DVD release. The Matrix broke several (minor) box office records, was critically hailed, and an awards darling for the below the line technical awards.

Having said all that. One of the most interesting aspects of conversations around the true version of films and such is that just because of the way time works the vast majority of people's first experience with any film will definitely NOT be a in a theater.