It's a classic "who moved my cheese" business case study.
The market changed, and rather than finding ways to innovate and adapt, the industry is resorting to begging the market to come back to it.
The theater industry, once upon a time, was the only place to see moving pictures of any length. Color film arrived before color TV did. Theaters were a place where you could stay cool on a hot summer day before every home had A/C. In the 80s and 90s, it was about a superior movie-watching experience -- no longer about a unique experience. Over the past quarter century, the home experience has caught up and in many homes surpassed the picture and audio quality of a theater.
Now that you can stream anything anytime in an air-conditioned home with 4k video and surround audio and any of the snacks and booze you see fit to grab from the local supermarket, what does the typical theater offer? Jack shit.
Now, you've got things like the Alamo Drafthouse that attempt to offer a different experience from what you'd get at your nearby 90s-style ultra-cine-plex. There's value in that.
But that's it. That's all. Go upscale or go out of business.