Actually, think about what I just posted there. It's a familiar meme, but not from a movie, but from a once-popular streaming series. Entertainment hours are a zero-sum game; the time we spend watching one show/movie or playing a video game is time we're not doing watching or playing something else.
And while most movie studios' content has gotten stale, the theater experience has worsened, and the home experience has improved to the point where more and more people actually prefer it, our options for entertainment have increased at the same time. We have not only a greater quantity of options, but the quality has gone way up as the market has gotten competitive. Video games aren't new, but their popularity and quality over the past decade or so is; they were the refuge of nerds when I was young, but among Gen Z and younger, it's just what every kid grew up with.
It's not just about the home experience vs the cinema. It's that movies are facing more competition than ever before from other entertainment options, which ironically is driving studios to create and cinemas to screen the very low-risk garbage that's killing the industry off.