Going to see "Avengers" tomorrow. It will be only the second time at the theater this year. I used to go a few times a month. Now my friends and I gather at my house to watch movies and we enjoy it a lot more. Sony projector with 110" screen and 7.1 surround, and recently, a popcorn popper! It's way sexier, and a whole lot cheaper to watch movies at home these days once the initial investment is over. I'd rather be disappointed by a recent Hollywood movie and spend $3.99 for an instant streaming movie via Amazon than by the $30 (gas is expensive) it winds up costing by the time I'm done being disappointed at the theater.
Also, I have to drive an hour to a theater that actually has audiences that aren't talking the whole time or annoying you with a cell phone. The days of going to a theater being a special experience are gone. To audiences, it's as ho-hum as the architecture of the "auditorium" they're sitting in.
All Hollywood has to do is look to the music industry to see the sort of changes that are coming. It's bad for everyone, good for everyone, and one thing's for sure, it's definitely different for everyone.