There is already an example of what’s happening with movies out there, the video game market. Videogames in the arcade used to have 3 things going for them, they were relatively cheap to make, cheap to play, and they offered an experience you absolutely could not get at home. Some shyt we look at as basic today like Pac-Man or Galaga could not be replicated anywhere else. Manufacturers could afford to take risks because the games were cheap to make and there wasnt much competition.
Today though games are extremely expensive to make and folks can play games just as impressive at home. So to get people to an arcade there needs to be another draw like food, beer, prizes, etc.... A basic game is not enough to pull people. So developers are not going to make an expensive ass game and put it exclusively in the arcade to flop.
Same thing with movies. If im spending 15 bucks per ticket then add in everything else then you better be offering something i cant get at home. The Top Gun, Marvel, Fast and Furious, etc....type movies are showing stunts and effects im not getting at home on TV. People will pay to see that. A story about some crooked Italians, yeah i can see that all day on a myriad of channels and streaming services. I aint leaving the house for that. Movie studios know that, so they aint giving these directors a ton of money to make something folks will wait for HBO Max to watch or are already seeing something similar on FX.
Back in 1976 when Taxi Driver released people had TVs that were an actual piece of furniture and averaged 27 inches, you damn right they going to the movies. Now, folks have 60-70 inch 4K tvs with the ability to pirate anything they want. Again, you better be offering an experience i cant get at home if you want me to see your movie in the theater.