Earlier quoted context omitted.
Yeah, I generally enjoy going to the movies, but in the past couple of years, a setup that puts most theater experiences to shame has become pretty affordable. A fairly good high def DLP projector is in the ballpark of $1k. Add a $100 Roku or Apple TV and a $300 set of 550W Logitech speakers (including amp), and you've got a great general purpose theater for less than $2k, and without the hassles. (If you don't have…
That's 200 movie tickets for a decidedly worse experience. Could be a factor but I suspect small.
In return:
* They have a massively improved home viewing experience, which is something they were doing already with television.
* They have a massive improvement in convenience (they don't have to leave the house to see it).
* They have a "good enough" (still "very good" overall) AV quality experience.
This is how displacement by substitutes works. It's hard to see it coming, because it's hard to know where to draw the line for "good enough". But we've probably crossed it for movies.